Power Generation, Transmission and Distribution 2026

FINLAND Trends and Developments Contributed by: Ismo Hentula, Saga Lamminsivu and Lauri Koskenniemi, Procopé & Hornborg Attorneys Ltd

land, concern has been voiced especially about the siting of SMRs for heat production near population centres, which would represent a departure from the previous approach under which nuclear power plants were subject to requirements for extensive exclusion zones. It is therefore evident that for SMRs, or other new adaptations of nuclear power, to become more widespread, a clear regulatory framework is necessary to alleviate the concerns of the public and affirm its trust and acceptance of the technology. From a global perspective, the Finnish nuclear regulatory framework and the role of STUK have been exemplary in facilitat- ing the development of new nuclear capacity. Electricity Transmission and Distribution The electricity network in Finland is generally sta- ble and predictable. It is constantly being renewed, and investments amounting to billions of euros have been directed towards maintaining and improving the transmission grid. However, faced with potential hybrid threats targeting the energy infrastructure due to the rise in geopolitical uncertainty, an emphasis has also been put on preparedness. At the same time, Finland’s electricity network is geographically divided between areas of surplus production and areas where consumption exceeds production. Balancing the dif- ference requires nationally co-ordinated measures in order to guarantee a reliable and secure electricity supply. High electricity consumption occurs in Southern Fin- land, where the majority of the Finnish population lives and the country’s most significant infrastructure and business clusters are located. The continuing electrifi- cation of society and industrial investments will place further strain on the region’s electricity network, neces- sitating considerable investment in new transmission connections and more efficient use of the existing network. The southern parts of the country currently account for 50% of the total energy consumption in Finland, and that share is forecast to rise to 60% by 2030. Ensuring a reliable supply of electricity and its transmission from production to consumption areas is one of the greatest challenges facing electricity net- works and the overall security of electricity supply. The largest electricity production area is located in Western Finland, where, in addition to three nuclear

power plants critical for power generation, a signifi- cant amount of wind and solar power is also gener- ated. Western Finland currently accounts for 70% of Finland’s total electricity production, a share that is forecast to rise to 80% by 2030. The regional chal- lenge for electricity networks therefore lies in how the surplus capacity of one area can be transferred to high-consumption areas in a cost-efficient and ener- gy-efficient manner while ensuring the reliability and security of electricity supply. Fingrid is responsible for Finland’s transmission grid, the operational reliability of the electricity system, and the centralised data exchange system for electricity retail markets. Its long-term objective is to strengthen the transmission grid at the national level so that more distributed electricity production can not only support the electricity system but also smooth out production variations across different parts of the country. The current imbalance between production and consump- tion has arisen partly from practical considerations: nuclear power plants and renewable energy sources such as wind and solar power have been relatively straightforward to construct in areas where there is sufficient space for power plants and their uninterrupt- ed operation. This has frequently meant siting them far from population centres, which are nonetheless the highest consumers of electricity, thereby increasing the load on electricity transmission networks. In addition to the previously discussed possibility of locating heat-producing SMRs closer to centres of consumption, the imbalance has been addressed through both legislative and operational responses. Alongside the reform of the Nuclear Energy Act, a revised Electricity Market Act (588/2013) entered into force in January 2026. Prior to the legislative reform, the construction of lines above 110 kV was largely reserved for Fingrid, as such lines were considered part of the transmission grid. Following the reform, distribution network companies can also construct such lines, thereby enabling grid expansion. The legislation was also amended to allow distribution network operators to develop generation-aggregating grids as part of their regulated operations. In addi- tion, electricity producers were permitted, subject to certain conditions, to construct shared connection

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