Sector Outline Finland: Offshore Wind

Finnish offshore wind is gaining momentum as a high-potential industry. With favourable wind conditions, shallow and low-saline waters, and proximity to the coast, Finland is well-suited to offshore wind.

Unlike the more complex environments of the North Sea, construction, installation, and maintenance are simpler and more cost-effective. Finland’s robust maritime and industrial expertise - especially in Arctic operations - combined with a well-established coastal industrial base and strategically positioned ports, creates a strong foundation for scaling offshore wind operations.

Although Finland’s installed offshore wind capacity remains modest, several large-scale projects are advancing through various development stages. The pipeline spans both territorial waters and the Exclusive Economic Zone (EEZ) - a maritime area where Finland holds exclusive rights to conduct economic activities, including energy production.

Recent regulatory reforms have clarified project development and permitting, shifting from developer-led site selection to competitive state-led auctions. Grid planning has advanced in parallel, with the Finnish TSO identifying key connection points and launching feasibility studies to support large-scale offshore integration.

Land procurement and permitting procedures vary by project location:

In territorial waters, land rights are secured through land use agreements awarded via competitive tendering by state-owned Metsähallitus. Project permitting follows a process similar to onshore wind development, with key requirements including Environmental Impact Assessments, municipal zoning, building permits, and Water Act permits.

Within the EEZ, developers obtain exclusive rights through government-issued exploitation permits, which will be awarded by the Finnish Energy Authority in competitive tendering rounds expected to begin in 2026. While zoning and building permits are not required, developers must complete Environmental Impact Assessments and obtain Water Act permits.

The Finnish offshore sector has not been immune to challenging international market conditions. In 2025, two tenders for projects in territorial waters concluded without developer selections, reflecting cautious investor sentiment amid rising costs and market uncertainty. Future tenders are expected once conditions stabilize.

To support long-term growth, the Finnish government is taking further steps to create a more coordinated and investment-ready framework. This includes a legislative proposal to extend and adjust real estate taxation in the Exclusive Economic Zone, aiming to align the tax burden of offshore wind projects more closely with that of onshore wind and improve financial viability.