Institutional analysis of wind power in Finland

Abstract

Wind energy is the second largest renewable energy source of electricity (RES-E) generation in the EU. Despite the strategic energy plans, such as the new feed-in tariff scheme and other formal rules, Finland's installed wind power capacity (197 MW) and its share in the gross electricity consumption (0.5%) belongs to the lowest in the EU27. The paper investigates the reasons behind the sluggish growth by embracing approaches from institutional economics. After the analysis of formal rules on European and national level, three levels of institutions affecting the wind power in Finland are identified: legislative and executive, governance structure, and individuals. Further, informal rules are identified from five semi-structured interviews with key informants from governance structure and individual-level institutions. The findings, structured according to three institutional aspects: policy, technology, and economics reveal multiple implications about the industry structure, municipal and regional governance, and public acceptance.