EU’s cross-border tender funds 20 MW Loukkaanaro solar park in Finland with €2.35 million grant

The European Climate, Infrastructure and Environment Executive Agency (CINEA) provided a €2.35 million grant to Oulun Seudun Sähkö for the 20 MW Loukkaanaro solar park in Finland, marking the first project commissioned under the EU’s Renewable Energy Financing Mechanism (RENEWFM). The funding, sourced from Luxembourg, covered part of the €10 million total project cost, with construction beginning in May 2024 and completion by December 2025. The solar park, located in Utajärvi within Finland’s northern Ostrobothnia region, features 30,000 solar panels and is expected to generate 4% of the region’s annual electricity consumption. Oulun Seudun Sähkö’s CFO Juhani Rönkkö highlighted the EU’s cross-border financing mechanism as crucial for securing local bank financing and additional savings to meet project costs. The project faced technical challenges during grid integration but was completed without major delays, providing operational data on large-scale solar generation in northern climates.

Counterparts (2)

Lender

C

Cinea

company

Cinea Partners is an infrastructure investment firm founded in 2022, specializing in digital infrastructure, energy transition, and transportation sectors. The firm focuses on strategic investments in companies that provide essential services and infrastructure, leveraging its team's extensive experience across North America and Europe.

borrower

Oulun Seudun Sähkö

company

Finnish local energy cooperative providing electricity, district heating, and fiber-optic internet services in the Oulu region. Operates as a member-owned utility with a focus on affordable energy and sustainable infrastructure development.