The Government of Åland is gearing up for its highly anticipated 2025 offshore wind auction, with the Sunnanvind project at the forefront. This initiative aims to harness Åland’s vast offshore wind potential, estimated at 6–10 GW, and generate significant socio-economic benefits for the region.
Key Recommendations for a Successful Auction
1. Integrated project design
To ensure the success of the auction, it is crucial to adopt an integrated project design that encompasses offshore wind, grid connections, and hydrogen production. Hydrogen production, in particular, adds value during low electricity price periods and enables access to high-value markets through infrastructure like the Baltic Hydrogen Collector pipeline. This approach supports derivative products such as e-methanol and e-ammonia for hard-to-abate sectors.
2. Effective market design and tender criteria
Developers participating in the auction should have a proven track record in large-scale offshore wind and Power-to-X (P2X) projects. They should commit to joint development with the government post-award, avoid upfront payments, and operate under flexible timelines until key risks are mitigated.
3. Comprehensive planning framework
The planning framework should be extended to include hydrogen and transmission infrastructure. Familiar regulatory frameworks, such as Finnish regulations, should be used to streamline permitting processes. Securing municipal approvals and clarifying permitting responsibilities are also essential steps.
4. Proactive government actions
Before the tender, the government should secure electricity and gas connections to Finland and Sweden, clarify hydrogen legislation and permitting pathways, and communicate clearly with municipalities about the full project scope.
Conclusion
A successful auction depends on proactive risk mitigation, integrated project design, and transparent communication. By following these recommendations, the Government of Åland can attract credible developers and ensure long-term value for the region.