The money will go to biofuel and new energy technology projects, the government said this week.
The nation aims to phase out coal and reduce its use of imported oil for power production, with a goal of covering over half its power needs with renewables by the 2020s.
Finland’s consumption of hard coal, largely imported from Russia, dropped by 26 per cent in 2015 as utilities mothballed or closed unprofitable power plants due to a steep fall in Nordic power prices.
Around 1800 MW of coal-fired power capacity is expected to be taken offline by the end of this year, according to utility Pohjolan Voima Oy (PVO).
Among the plants shut down last year were PVO’s Kristiina, Tahkoluoto and Vaskiluoto plants, totalling 900 MW, and Fortum’s 1 GW Inkoo plant. And utility Lahti Energia announced this week that it will mothball its 170 MW Kymijarvi plant in 2019.