Finland's proposed 33pc windfall tax on excess profits made in the power sector could curtail new investment in power generation from renewable energy sources (RES), Finnish utility Fortum told Argus.
The utility said it has yet to complete its analysis concerning the details and legal aspects of the temporary tax, which if applied would impact excess profits made in the electricity and fossil fuel sectors next year.
"In general, the proposed windfall tax, even if implemented as a temporary tax, could substantially weaken Finland's investment climate at a time when Finland desperately needs new investments to proceed with green transition and to improve the security of supply," Fortum told Argus today.
Finland is anticipated to install about 1.23GW of new wind capacity in 2023, from 11 different developers, of which the largest project is the 404MW Mutkalampi wind farm owned by French firm Neoen.
The windfall tax proposal is up for consultation until 12 December, and will be submitted to parliament before the end of this year.
Fortum currently runs 33 hydropower plants in Finland, with a combined capacity of about 1.55GW, as well as the 1GW Loviisa nuclear station, and is co-owner of the 90MW Kalax wind project. The company had sold forward 65pc of its 2023 power production at the end of the third quarter of this year.
