Finland Switches On Its First EU-Backed Solar Park Under The EU Renewable Energy Financing Mechanism (RENEWFM)

The first project supported under the EU Renewable Energy Financing Mechanism (RENEWFM) has now been successfully commissioned in Finland, marking a significant achievement for the initiative and for cross-border renewable-energy cooperation within the European Union. The Loukkaanaro Solar Park, located in Utajärvi in Northern Finland, is officially operational and represents an important step forward in expanding clean-energy production in the region.

Operated by Oulun Seudun Sähkö, the solar park consists of around 30,000 photovoltaic panels with a total installed capacity of 20 MWp. It is expected to generate approximately 15,000 MWh of renewable electricity annually, enough to cover about 4% of the region’s yearly electricity consumption. As the largest photovoltaic installation in northern Finland, the project also serves as a valuable test case for assessing the performance of large-scale solar generation in cold climates.

Its operation will provide important data on how solar panels respond to snow, low temperatures, and other northern environmental conditions. The solar park is also designed to deliver long-term climate benefits, reducing carbon dioxide emissions by an estimated 1,540 tonnes per year and operating for at least 30 years, contributing significantly to regional decarbonisation efforts.

The project brings economic and social benefits to the local community as well. During the construction phase, it created jobs for local contractors, and it will continue to generate land-lease income for the region throughout its operational lifetime. As part of the development, a new power line was built to connect the solar park to Finland’s national electricity grid, improving local energy self-sufficiency, strengthening the security of electricity supply, and supporting the broader green-transition agenda.

The Loukkaanaro project was selected under the first RENEWFM tender completed in September 2023, in which seven ground-mounted solar PV projects in Finland received funding. Luxembourg participated as the contributing country, making the project a cross-border achievement that supports renewable-energy targets in both Finland and Luxembourg.

Loukkaanaro was the first project to sign a grant agreement with CINEA, receiving €2.35 million in investment support out of a total project cost of around €10 million. Construction began in May 2024, and the facility was completed at the end of 2025, showcasing how financial cooperation between EU member states can translate into tangible renewable-energy capacity on the ground.

Looking ahead, the remaining 15 projects awarded under the first and second RENEWFM tenders are expected to be commissioned between 2026 and 2028. In addition, the European Commission launched another RENEWFM call on 3 March 2026 with a budget of €54.9 million. In this round, Luxembourg is again participating as a contributing country, while Bulgaria and Finland will host the supported solar PV projects. Together, these efforts reflect the growing momentum behind cross-border renewable-energy development in the European Union and highlight the role of collaborative financing in accelerating the shift toward a cleaner energy future.