Economic impacts of offshore wind power

The construction and operation of an offshore wind farm have a considerable positive impact on the regional economy and business activities. In addition to procurements during the investment’s development and construction, the effects also include real estate taxes, as municipalities in Finland are allowed to tax real estate located in their areas.

State area, municipal real estate tax

Property tax received by the municipality depends on the construction costs of the turbines and the property tax level determined by the municipality. The annual real estate tax income brought by one offshore wind turbine can amount to 70,000 euros. Thus, the annual real estate tax income for the municipality of a large offshore wind farm can be several million euros.

Increased economic activity also creates other regional cash flows, both during construction and after production starts. Employment opportunities include planning, related construction of the wind farm infrastructure, transportation, wind turbine installation work, and accommodation and catering services.