Åland's government open for major offshore wind projects

Offshore wind power means billions of euro in investments. Any realised project would mean hitting the jackpot for municipalities in terms of tax revenues from power plants. But for now, it is not possible to provide an exact figure, says Camilla Gunell, Minister for Infrastructure in Åland's government. Photo: Government of Åland  

“Establishing offshore wind power in Åland’s waters is a future investment and the start of an industry that can be positive for the climate, the economy for the autonomous area and municipalities, for employment and the development of Åland’s business sector,” reads the current government programme which was agreed on in December last year. 

The government coalition comprises three parties – the Liberals, Åland Centre and Åland Social Democrats.

Minister for Infrastructure and Climate Camilla Gunell is a Social Democrat and the issue is primarily her responsibility.

“We have to reduce our dependency on fossil fuels to save the climate, and I cannot see a better alternative for us than wind power. Currently, the sea area to the north of Åland – known as Norrhavet – is under consideration, with water depths ranging from 10 to 80 metres.

"We have also looked at areas to the south of Åland, where conditions might be even better. But the Finnish defence forces have said no,” she says. 

A complex issue

The government’s project Sunnanvind has a couple of employees and more are coming on. It is busy preparing the necessary documentation for future developments. There is already collaboration with the university and several consultancy firms covering different areas of expertise.

“There are countless issues to be solved, from the environmental impact to the potential for energy distribution and the expected economic consequences for both the autonomous area and the municipalities. One crucial point for Åland is establishing an energy distribution point on the mainland,” says Camilla Gunell.

Although Åland owns the waters, the municipalities hold the planning rights and five of Åland’s 16 municipalities are affected.

The wind farm in the Båtskären archipelago south of Mariehamn was established in the early 2000s and is small fry compared to today's huge plans for offshore wind power. The islands house six wind turbines, each measuring 65 metres tall. The planned turbines reach 420 metres.

“We are in constant dialogue with them. We do not wish to override anyone”, says Camilla Gunell.

Cautious politicians

There are currently nearly 30 onshore wind farms in Åland of various vintages and sizes. According to a 2022 survey made by Statistics and Research Åland (ÅSUB), more than 60 per cent of Ålanders are positive to more wind power. 

However, a survey of politicians holding municipal positions in the affected areas reveals a more cautious, if not negative, tone.

Geta municipality in northern Åland presents itself as “Norrhavet’s neighbour” and Frida Sjöroos, chairperson for the municipality’s council, says the planned initiative feels very big for small Åland. 

“Many in our municipality want to protect the unspoilt horizon to the north and the environment as a whole. As far as I know, the majority of both citizens and holiday home owners are against the plans,” she says. 

Frida Sjöroos, chairperson for the Geta municipality council.

Uncertain millions

Similar arguments are made by other elected representatives, including Thommy Fagerholm, the chairperson of the Saltvik municipality.

“The project is enormous as is the economic uncertainty. From the start, municipalities were promised millions in tax revenues, but this has only been opinions and assumptions,” he says. 

Many municipalities in Åland are small and struggle economically. With that in mind, new income would be welcome. 

“Sure, but at what price? Do we sacrifice Åland’s unspoilt nature? We must have secure factual information before we can say yes or no,” says Thommy Fagerholm. 

Both Saltvik and Brändö, another affected municipality, have raised the possibility of taxing power plants, and the municipalities have said they wish to impose a tax rate of 3.1 per cent. 

“We have not had a similar tax before but we wish to communicate already now that we will commit to the highest allowable amount,” says Thommy Fagerholm.

“Not in my backyard”

Minister Camilla Gunell says protests are part of the democratic process.

“As long as no information clearly says the risks outweigh the benefits, we will go ahead. Those who are opposed seem to be mainly concerned with the visual impact; the wind turbines that will be visible on the horizon.

Anders Wiklund at OX2's Åland office shows an area north of  Åland which has been identified as suitable for offshore wind power. The company says a park here could house 340 turbines with a maximum height of 420 metres.

“But what is or isn’t ugly is in the eye of the beholder. Every measure comes at a price, but it is extremely unfortunate if not-in-my-backyardism is allowed to determine the development,” she says.

Eager to bid

Two wind power companies have set up shop in Åland – OX2 which was established in Sweden in 2004 focusing on renewable energy, and Ilmatar, founded in Finland in 2011. All of Ilmatar’s planned offshore wind power projects are run from their Åland offices, no matter where they will be built.

Both the competing companies have spent recent years gathering data for environmental analysis and business calculations for possible major developments in Norrhavet. Their current message is clear and can be summed up like this:

“If the conditions are interesting when the areas are put out to tender, we will bid.”

That does not mean, however, that they will be the only ones bidding. There are many other players who might want to join in on the fun.

Anders Wiklund is the island ambassador for OX2. If they were to win the bid, he believes construction could start no earlier than 2027 because further comprehensive surveys and analysis are needed.

“We have taken part in several municipal meetings, met residents, presented data and answered questions. We have had a good dialogue and hope public opinion will settle on the main question – how big a project can Åland accept?” he says. 

Showing decisiveness 

Anna Häger, Ilmatar’s head of region, is convinced there will be offshore wind power in Åland's waters in the future.

"I meet resistance but also a lot of support from both politicians and business leaders," says Anna Häger, head of region for Ilmatar Offshore. The company plans and constructs large-scale wind farms in Finnish and Åland territorial waters.

“We must dare take risks and show decisiveness. Our future energy supply is the greatest challenge we face right now. It is OK to be in doubt, but it is not OK to postpone difficult decisions and hope someone else will solve the problems.

“There is opposition to large-scale offshore wind power, but there is also no other solution that absolutely everyone likes. As I see it, the benefits of wind power far outweigh the harm for many people,” she says.