The first project supported under the EU Renewable Energy Financing Mechanism (RENEWFM) has been successfully commissioned in Finland.

The Loukkaanaro Solar Park, located in Utajärvi in Northern Finland, is now operational, marking a major milestone for the mechanism and for cross-border renewable energy cooperation in the European Union.

Strengthening renewable energy production in Northern Finland

Managed by Oulun Seudun Sähkö, the Loukkaanaro Solar Park comprises approximately 30,000 panels with a total installed capacity of 20 MWp. It is expected to produce around 15,000 MWh of renewable electricity per year, enough to cover around 4% of the annual electricity consumption in the region.

The Loukkaanaro Solar Park is the largest photovoltaic installation in northern Finland. The project therefore represents an important step in demonstrating the viability of large-scale solar generation in northern climatic conditions. The effects of snow and cold temperatures will be closely monitored, providing valuable operational data for the development of future renewable energy projects in similar environments.

In addition, the project delivers concrete climate benefits, as it is expected to reduce CO₂ emissions by approximately 1,540 tonnes annually, and it is designed to operate for at least 30 years, so it will contribute to the long-term decarbonisation of the region.

Regional impact and local benefits

Beyond its contribution to renewable energy targets, the project brings tangible benefits for the local community and economy.

The construction phase created employment opportunities for local contractors, and the solar park will generate land lease income throughout its operational lifetime.

In addition to solar installation, the project included the construction of a new power line connecting the plant to Finland’s national grid. This strengthens regional energy self-sufficiency, enhances security of supply and supports the green transition.

A milestone under RENEWFM

The Loukkaanaro project was selected under the first RENEWFM tender concluded in September 2023. Under this tender, seven ground-mounted solar PV projects were awarded funding to build photovoltaic infrastructure in Finland. Luxembourg participated as contributing country to this tender. The Loukkaanaro Solar park hence contributes to the achievement of national renewable energy targets in both Finland and Luxembourg, reflecting the cross-border nature of the mechanism.

Loukkaanaro was the first project to sign a grant agreement with CINEA. It received €2.35 million in investment support out of a total project cost of approximately €10 million.

Following the grant signature, the project moved into construction in May 2024, and the solar park was completed at the end of 2025. 

The commissioning of Loukkaanaro demonstrates how financial cooperation between Member States translates into concrete renewable energy capacity on the ground.

What’s next

The remaining 15 projects awarded under the first and second RENEWFM tenders are expected to be commissioned between 2026 and 2028.

In addition, on 3 March 2026, the Commission launched a new RENEWFM call with a budget of €54.9 million. Luxembourg participates as contributing country, while Bulgaria and Finland will host the supported solar PV projects, further advancing cross-border renewable energy cooperation in the EU.