The 1st project under the EU’s RENEWFM cross-border renewable energy cooperation has become operational
With 20 MW installed capacity, it is expected to generate 15,000 MWh annually in northern Finland
It will help assess solar performance in cold and snowy conditions to plan more such facilities in northern climatic conditions
With 20 MW installed capacity, the Loukkaanaro Solar Park in Finland has become the 1st project to start commercial operations under the European Union’s Renewable Energy Financing Mechanism (RENEWFM).
It is also the largest solar PV installation in the country, according to the EU. However, much larger PV facilities are being planned in Finland, including Finnish renewables developer Taaleri Energia’s 129 MW solar power plant (see Europe Solar PV News Snippets). The European Commission selected Alight’s 120 MW solar and 45 MW battery energy storage system (BESS) in Finland for its Innovation Fund 2024 round (see Europe Solar PV News Snippets).
The Loukaarnaro solar PV project in Northern Finland’s Utajärvi is expected to generate around 15,000 MWh annually, enough to cover close to 4% of the region’s annual electricity consumption. The project is managed by Oulun Seudun Sähkö.
Its construction also involved a new power line that connects the plant to the national grid. The EU says that the Loukkaanaro Solar Park represents an important step in demonstrating the viability of large-scale solar generation in northern climatic conditions.
The facility will be closely monitored for the effects of snow and cold temperatures to help plan future renewable energy installations in similar environments.
The EU selected this project under the 1st RENEWFM tender in September 2023 and is the maiden facility from the 7 power plants selected in the round to come online with Luxembourg’s support. It was the 1st winning project to sign a grant agreement with the European Climate, Environment and Infrastructure Executive Agency (CINEA) (see EU Announces Support For 7 Finnish Solar Energy Projects).
RENEWFM is an EU financing mechanism that enables cross-border funding for new renewable energy projects, aligned with the European Green Deal objectives. The commission granted €52 million for 9 onshore wind and solar projects in the 2nd RENEWFM round (see EU Grants €52 Million For 9 RE Projects in Finland & Estonia).
All the selected facilities in RENEWFM rounds 1 and 2 are scheduled to start commercial operations between 2026 and 2028.
The EU also launched the 3rd funding round in March 2026 with a budget of €54.9 million for solar PV and storage projects in Bulgaria and Finland. Luxembourg is also financing this round as a contributing member state (see EU Launches 3rd Cross-Border Renewable Energy Tender Under RENEWFM).
