The Finland Chamber of Commerce and the Finnish Ports Association propose that the use of shore power by vessels in ports be promoted by applying the lower, industrial electricity tax rate to shore power. The proposed change in the tax rate would be well suited to implementation in the government’s mid-term policy review as a measure to reduce maritime transport costs and enhance the competitiveness of export industries.
The lower tax rate would reduce electricity excise revenue by an estimated EUR 0.54 million in 2026 and approximately EUR 2.80 million in 2030. However, the increasing use of shore power, even with a lower tax rate, will generate more tax revenue in the future compared to the current situation, where the electricity required during port stays is produced on vessels using tax-exempt fuel oil.
During port calls, vessels use electricity for heating, lighting, operating onboard electrical systems, and for loading and unloading operations. Electricity on board is typically produced by auxiliary engines or generators running on fuel oil. Fuels used on vessels in international traffic are tax-exempt. Shore power systems in ports, which connect vessels to the port’s power grid, significantly reduce fuel oil consumption and emissions from maritime transport. The use of shore power is estimated to reduce emissions during port calls by 50–80%.
According to the provisions of the Energy Tax Directive, a reduced tax rate may be applied to shore power in ports. The aim of the tax reduction is to create an economic incentive for the use of shore power to reduce emissions. Countries such as Sweden, Denmark, Germany, the Netherlands, Italy, France, and Spain have already adopted the reduced tax rate. Finland should also seek permission from the European Commission to apply a lower tax rate.
The use of shore power has been hampered by the significant investments required for power supply systems in both ports and vessels. Since current vessels have limited capability to use shore power, it has not been justifiable for port organisations to invest in shore power supply systems.
In the coming years, EU legislation will require ports in the TEN-T network to invest in shore power. A lower tax rate would improve the cost competitiveness of electricity compared to fossil fuel oil and encourage vessels to switch to shore power use in ports, thereby accelerating shore power investments.
Shore power consumption in Finnish ports is estimated to have been approximately 13 GWh in 2024. This is expected to grow to around 25 GWh in 2026 and 130 GWh in 2030. The lower tax rate is expected to increase demand for shore power, as a lower electricity price will accelerate investments in supply systems and improve the cost-effectiveness of shore power use. A more affordable price also supports the charging of batteries in future vessels while in port.
The increased use of shore power would reduce port emissions (CO₂ equivalent) by approximately 8,000 tonnes in 2026 and about 40,000 tonnes in 2030. In addition to this, the lower tax rate is estimated to further accelerate emission reductions by about 1,600 tonnes in 2026 and approximately 17,000 tonnes in 2030. Besides carbon dioxide, shore power significantly reduces local air pollutants such as nitrogen oxides and particulate emissions, improving working conditions on board and in ports.
Further information
Hanna Kalenoja, Senior Advisor, Transport and Logistics, The Finland Chamber of Commerce
+358 50 534 4750, hanna.kalenoja@chamber.fi
Piia Karjalainen, CEO, Finnish Ports Association
+358 50 435 5604, piia.karjalainen@suomensatamat.fi
