Grid Connection for Energy Projects in Finland

While the Finnish power grid is generally high-performing, localised bottlenecks and capacity shortages exist in certain hotspots. Grid availability is often a temporary constraint, as power lines are continuously upgraded, and additional substations are built to meet growing demands. However, for many projects, the available grid connection remains the most crucial factor in terms of project timeline for achieving commercial operation.

Grid operators do not offer binding capacity reservations before a project has progressed significantly in development (typically until zoning has been completed). Therefore, it is crucial to assess available capacity early on and continuously monitor it throughout the development process.

In remote regions favoured by large projects, connection distances can be substantial. To address the financial and environmental challenges posed by these distances, an emerging trend is to create joint infrastructure arrangements with neighbouring projects. While this approach enables more business cases and fosters beneficial collaborations, it is essential to meticulously craft the contractual and corporate framework. This ensures that each participant project secures reliable access to the joint assets in a bankable manner.

The commercial viability of hybrid projects often rides on operating different assets “behind-the-meter”. Recent electricity market reforms have made it considerably easier to pool generation units, consumption loads, and energy storage under a single grid connection. A major change from January 2026 is that direct delivery between generation and industrial loads is now exempt from grid licensing, enabling bilateral links between renewables and large offtakers. However, careful project design remains essential when combining different asset types to avoid triggering grid operator requirements.