Finland:
A Prime Destination for Energy Investments
Finland is at the heart of ongoing energy transition, where renewable sources are replacing fossil fuels in energy production, industry, and even transportation. Large-scale energy projects, such as solar power plants and energy storages, are central to this transformation, offering solutions to both the growing demand for electricity and climate targets.
What is Driving the Transition
The ongoing energy transition in Finland is fueled by a unique combination of competitive advantages:
Surging Electricity Demand
Finland’s electricity consumption (and production) is expected to double by 2035, driven by industrial electrification, data centers, green hydrogen production, and new large-scale renewable energy projects. Read more.
A Pioneer in Clean Energy
95% of Finland’s electricity was produced from fossil-free sources in 2024, reflecting the country’s advanced clean energy capabilities. Read more.
Significant Investment Pipeline
Finland is home to EUR 280 billion clean energy investment pipeline, creating significant opportunities in renewable electricity, energy storage, and green hydrogen projects. Read more.
Vast Land Area for Development
With 300,000 km of available land and a low population density, Finland offers ample space for energy innovation and large-scale project development.
Strong Grid with a Unified Market
Finland’s main grid is robust, enabling efficient distribution of renewable electricity. Unlike many othercountries, Finland operates a single bidding area, simplifying grid management, reducing price volatility, and ensuring a predictable invesment environment. Read more.
Efficient Permitting Environment
Finland’s streamlined permitting processes allow for faster project execution compared to many other European markets, reducing development risks for investors.
Global Leadership in Hydrogen
Finland aspires to lead the EU in the hydrogen economy across the entire value chain with an ambitious target of producing at least 10% of the EU’s clean hydrogen by 2030. Read more.
Access to Bio-Based Carbon
Finland’s unique availability of bio-based CO2 streams supports sustainable carbon capture, storage, and utilisation (CCUS) projects. Read more.
Stable Regulatory Framework
Finland has stable and predictable energy policies with a commitment to carbon neutrality by 2035. Read more.
Investment Incentives for Green Energy Projects
Finland offers a range of financial incentives to attract and support renewable energy investments, such as:
Tax Credits for Green Investments
Businesses investing at least €50 million in projects that drive a climate-neutral economy may be eligible for investment credit covering up to 20% of investment costs, capped at €150 million per company. This incentive applies to investments in:
- Renewable energy production and storage
- Low-carbon industrial processes and energy efficiency
- Strategic sectors supporting the climate transition
- Read more
Investment/Energy Aids
Investment aid for major clean energy projects in Finland, with a minimum eligible investment of €30 million and significantly contributes to Finland’s climate and economic goals. Read more
Energy aid for new technology projects that enhance energy efficiency, renewable energy production, and low-carbon solutions. Priority is given to well-prepared projects involving new technology. Maximum investment €5 million. Read more
TSO’s Grid Investments Securing the Future of Energy
A strong and modern grid is essential for large-scale renewable energy deployment. Fingrid, Finland’s transmission system operator, is investing €4 billion (2024–2033) to expand and reinforce the national grid, ensuring efficient energy transmission and cross-border connectivity.
Key projects include major transmission line expansions, such as the Forest Line, and the Lake Line, facilitating renewable energy integration. Additionally, cross-border connections like the Aurora Line (Sweden) enhance market stability and capacity. Urban upgrades, including the Helsinki Cable Project (completion 2026), strengthen electricity supply in high-demand areas. Read more
