Suomen Hyötytuuli’s new study on the regional economic impacts of wind energy

Published Writer @marjut
General

Suomen Hyötytuuli has commissioned a large-scale regional economic study on wind power, based on the data collected about the company’s wind power production, and forecasts for projects under development and construction. This is the first domestic study that utilises actual data of wind energy production as part of the assessment on this scale. The impact on GDP of the production capacity included in the study is EUR 3.8 billion, while the impact on employment in the domestic wind energy value chain is more than 16,000 person-years. The results reinforce the understanding that the economic impact of wind energy is significant both nationally and regionally.

The aim of the study commissioned by Suomen Hyötytuuli Oy was to investigate the direct and indirect economic impacts of the company’s wind farms and wind energy projects at different stages of the wind energy life cycle. The company’s wind farms and wind energy projects are located in Northern Ostrobothnia and nearby areas, and in the Satakunta region. The study also aimed to deepen the understanding of the extent of the impacts that wind energy production has regionally and nationally. Based on an input/output model (EEMRIO), the study was conducted by Alarauho Oy, a company specialising in modelling economic impact.

According to the study, Suomen Hyötytuuli wind energy projects and wind energy production will generate EUR 5.6 billion of turnover and EUR 3.5 billion of value added during the 40-year projection period. Investments will amount to EUR 1.8 billion. The impact on GDP will be EUR 3.8 billion, and there will be a demand for labour of more than 16,000 person-years. The tax revenue will amount to approximately EUR 1.3 billion, consisting of real estate tax, municipal income tax, corporate tax, income tax, taxes on products and production, and value added tax.

“Wind energy projects create a positive economic cycle, with economic impacts on many sectors and regions in Finland,” says Alarauho Oy’s CEO Joonas Hokkanen.

“Real estate tax is often highlighted when we talk about the economic impacts of wind energy. However, the study shows that the value chain of wind energy production creates significant regional economic impacts at various stages of the life cycle, especially during the construction and production stages. Identifying and understanding the economic impacts is important from the perspective of sustainability. The information is valuable for stakeholders and decision-makers in existing and potential wind energy production areas. As a Finnish company, it is important for us to increase the production of wind energy in Finland,” says Suomen Hyötytuuli Oy’s Sustainability Manager Paula Mäkeläinen.

The study examined the total turnover, value added, tax revenue, investment volume, and the impact on employment and GDP of wind energy production and projects. The calculations have taken into account not only the direct economic impact, but also the multiplier effects of wind energy on other sectors, and the multiplier effects on consumption, such as the economic activity to satisfy new consumption needs resulting from increased pay to employees.

The study covers Suomen Hyötytuuli’s wind energy production and development as a whole. For wind energy production and wind farms under construction, the study utilised actual and verified future impacts, and for wind energy projects under development, the study was based on project development calculations. The time frame of the study is 2003–2063.

Wind energy production and development included in the study (as of 2023)

  • In production, 219,6 MW: Annankangas (Raahe), Jokela (Kalajoki), Kuljunniemi (Raahe), Nikkarinkaarto (Raahe), Polusjärvi (Pyhäjoki), Reposaari (Pori), Tahkoluoto (Pori) (Tahkoluoto Extension not included)
  • Under construction, 421,4 MW: Alajoki-Peuralinna (Perho & Kyyjärvi), Siikajoki (Siikajoki), Oosinselkä (Pori & Eurajoki)
  • In planning phase, 319,7 MW: Pesola (Soini), Kokkoneva (Perho), Nikkarinkaarto Extension (Raahe), Korpi-Matti (Merikarvia)

Further information:

Project Manager Panu Piirtola, tel. +358 40 655 1315, panu.piirtola(at)hyotytuuli.fi