There is no public support system on Åland for offshore wind power, and no such system is being planned. As one of the companies hoping to plan and construct windparks, Ilmatar Offshore receives financial support from tax funds neither in the investment nor in the construction phase.
Previously, land-based wind power projects received funding but the most likely future scenario is that all production facilities for wind energy will be constructed under market conditions. Ilmatar Energy has shown the way by having built the first land-based wind park financed completely without public funding in Piiparinmäki in Finland.
The Åland Government project Sunnanvind is funded through the European Union’s Recovery and Resilience Facility and does not entail a direct cost for Åland taxpayers. It might be argued that tax money flows into EU funds, since Finland participates in their funding with taxes collected in the country. On the other hand, it is a good idea that even Åland should profit from and recover some of our monetary contributions to the European Union.
The European Union’s support system for facilitating the transition into renewable energy was established, since the electricity supply is considered a part of the critical infrastructure of society while the transition to renewable energy is deemed necessary. The support can be paid out to countries, regions, or to the European Union. An enlightening comparison can be made with for example the support system for food production, which is seen as profitable for the overall economy of society. When it comes to support for renewable energy, one must also take into consideration that subsidies may be seen as profitable if they further new technology or stimulate development in an important line of business. If a subsidy helps create, for example, new technology for energy storage, it may be seen as a technology subsidy and not a subsidy for wind energy production.
The Government of Åland has requested for funding to recruit two persons to lead the project Sunnanvind for the government. The request has been because offshore wind is considered an important new long-term opportunity for boosting the local economy. Just like seafaring, large scale wind power production consists of clusters and has a positive impact on the public economy as a whole. Public financing from Åland for the investigation of how the region can ensure a robust future economy is, of course, a necessity, and as such not a unique feature of this project.