Sector Outline Finland: Solar

Contrary to popular belief, Finland’s solar energy potential is competitive with that of Central Europe, and the country benefits from some unique factors that make solar energy viable. The cool climate and high proportion of diffused radiation enhance productivity. Efficient year-round production is possible with systems that prevent snow-accumulation, and long summer days compensate for the darker winter season.

While attractive on its own, a key potential for solar lies in its ability to balance the seasonal and daily profiles of wind. Pooling both assets enables a substantively steadier supply of renewable electricity and enables PV plants to tap into the higher-price low-wind hours. Due to partly different geographical preferences, solar farms are able to utilise areas that are less desirable for wind farms. This allows them to avoid local grid bottlenecks along the wind-heavy coast and cater to the energy demand of inland industry and cities.

Due to the forest-heavy nature, environmental feasibility and social acceptability of individual projects largely relies on site selection. The ramp-down of the peat industry has left rural areas with lucrative brownfield sites where solar parks can be built without significant impact on environmental values and carbon sinks while being able to utilise existing infrastructure.

The installed capacity accumulates mainly from small-scale rooftop applications, but a vast industrial pipeline has emerged within just a few years. A typical Finnish solar project is planned on peatland, field, or commercial forest, with a capacity in the tens or hundreds of megawatts. Although the sector is still relatively new in terms of large-scale operations, it has the advantage of leveraging established technologies and existing value chains. Paired with relatively fast permitting, this allows for the rapid development of projects, outpacing other power generation technologies.