Renewables in Finland: Zoning and Permitting

Due to Finland being an EU member, the legal framework is strongly influenced by Europe-wide harmonization initiatives. In the area of energy markets in particular, most laws are based on European directives and regulations.

As in many other European countries, Finland has no uniform legal framework for individual renewable sectors. Projects are typically subject to a variety of regulations that are not necessarily harmonised and may not fully address the unique characteristics of certain technologies. Consequently, the success of these projects hinges on the ability to devise a development strategy that is fast and efficient, while also mitigating legal compliance and bankability risks to ensure the project’s viability.

While individual prerequisites depend on the type of the project, the permitting process generally follows the same principal stages.

The overall suitability of the planned activities in the intended area is evaluated on a more general level during environmental impact assessment (EIA) and zoning, with a more detailed assessment conducted during permitting. Finnish law does not currently provide for a one-stop-shop permit, but projects regularly require several specific permits, each having their own prerequisites and avenues for appeals.

Environmental Impact Assessment (EIA)

A formal EIA is mandatory for certain types of projects, including:

Wind farms with at least 10 WTGs or a nominal capacity of at least 45 MW.

PV plants involving changes in forest and wetland areas of 200 hectares or more.

Power lines with a voltage at least 220 kV and a length of over 15 km.

P2X projects where several processes are integrated to produce organic or inorganic chemicals.

In addition, an EIA may be required on a case-by-case basis if the project has the potential to cause comparable significant environmental impacts. In new types of projects with no established administrative practice, it is not always clear where to draw the line. There is a trend to conduct an EIA also where it is not clearly required, as this enhances the bankability of a project and allows for comprehensive stakeholder engagement early in the development.

Land Use Planning and Zoning

Land use planning in Finland is based on a three-tier hierarchy:

Regional plans direct land use on a regional level. They commonly allocate areas for activities or interests with regional significance and set out the broader lines of inter-municipal development.

Local master plans design the land use structure on a municipal level. A local master plan coordinates the general distribution of land for different needs within a municipality, several neighbouring municipalities (joint municipal master plan) or a specific subarea (partial local master plan).

Detailed local plans are tools for the detailed organisation of land use, building and development. The planning typically caters for urban settlement and industrial and commercial areas, coordinating the location and volume of construction and their infrastructure.

The required level of planning varies based on the project scale and impact. For instance, large-scale wind farms often require consideration at both the local and regional level. Projects that are situated in industrial zones or close to existing facilities usually need more than a local master plan, and a detailed local plan may be necessary. Although zoning requirements are quite established for well-known technologies like wind farms, there is still some uncertainty regarding newer types of projects, such as solar and Power-to-X.

On a local level, zoning is the prerogative of the municipality and essentially dependent on political decision-making. The potential for increased tax revenue and economic development often motivates municipalities to support renewable energy initiatives. However, securing local backing at an early stage is crucial for the success of these projects.

Permitting

The Finnish permitting landscape is structured around sector-specific permits that each regulate specific aspects of the project:

Practically all industrial scale renewable projects require one or more building permits.

Depending on the potential impact, projects may require an environmental permit, which can place constraints on the operation. Wind farms, for example, typically require an environmental permit if there is a risk of exceedance of applicable noise or flicker limits. Other factors that trigger a need for an environmental permit may include involvement of chemicals, notable heat emissions or pollutants.

A water permit may be required if project construction or operation has water management implications, such as effects on aquatic resources or environment. This naturally applies to offshore wind but can also become relevant for cooling water arrangements of exothermic processes or drainage systems in solar farms, for example.

Wind farms typically require flight obstacle permits due to their potential interference with aviation.

Considering national security interests, activities that could affect military aviation, radar systems, or involve seabed research within territorial waters, require the authorisation of the Defence Forces.

Environmental and cultural values, such as protected fauna and flora or ancient relics, may need to be accommodated through special (exemption) permits.

Enhanced safety requirements apply to the handling and storage of chemicals and pressurised gases, as well as the construction and operation of dedicated infrastructure and equipment. Renewable fuels such as hydrogen, biogas, e-methane, and ammonia are classified as hazardous substances and fall under the chemical safety regulations. This includes permitting of facilities and infrastructure, additional criteria for site selection, and compliance monitoring.