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The European Union’s cross-border renewable energy programme has delivered its first operational project, with a 20 MW solar park in Finland now up and running.

The Loukkaanaro solar park, located in Utajärvi in northern Finland, received €2.35 million in EU funding through the Renewable Energy Financing Mechanism (RENEWFM). The project is considered the largest operational solar installation in northern Finland.

According to the European Climate, Infrastructure and Environment Executive Agency (CINEA), the project is the first to be commissioned under the scheme, which enables collaboration between EU member states to finance renewable energy developments. The Loukkaanaro project was among several Finnish solar projects funded by Luxembourg in the first tender round.

Developed by Oulun Seudun Sähkö, the project includes around 30,000 solar panels and is expected to generate roughly 4% of the region’s annual electricity demand. Most of the electricity will supply local households, with limited use from commercial and industrial sectors.

Juhani Rönkkö, chief financial officer at Oulun Seudun Sähkö, said the EU funding played a key role in making the project viable, alongside financing from a local bank and company resources.

Construction began in May 2024 and was completed by the end of 2025, despite some grid integration challenges.

CINEA said the project will also provide valuable data on solar performance in cold and snowy conditions, supporting future renewable developments in similar climates.

Further projects backed by the scheme are expected to come online through 2028, with additional funding rounds already underway.

Source: pv-magazine.com