FINLAND Trends and Developments Contributed by: Ismo Hentula, Saga Lamminsivu and Lauri Koskenniemi, Procopé & Hornborg Attorneys Ltd
networks without an electricity network licence. The aim was to ease regulation, improve cost efficiency, and encourage co-operation, particularly in renewable energy projects. The legislative reform also aimed to promote the development of offshore wind power by extending the transmission system operator’s area of responsibility to cover Finland’s exclusive economic zone. The Finnish Ministry of Economic Affairs and Employ- ment is also currently preparing a support mechanism for electricity production that would secure the reliabil- ity of the electricity system in situations where modes and output of electricity production vary, for exam- ple due to weather conditions. The support scheme is planned to make use of the EU Block Exemption Regulation, under which it would not require state aid discussions with the European Commission. In addition to the national reform of the regulatory framework, Fingrid has also proposed a number of concrete measures to address the challenges related to electricity network capacity. The measures include the re-examination of the transmission grid fee system
to better incentivise the efficient use of capacity, the development of new technological solutions to enable more effective utilisation of network capacity without the need for major investments, and the facilitation of market-based mechanisms that allow capacity to be allocated and used more flexibly than at present. So far, Fingrid has sought to secure regional balance through, among other things, the reform of electricity network fees, which encourages operators to locate battery storage facilities closer to production plants. Finland’s transmission grid infrastructure is therefore receiving significant investment while, at the same time, changes in the regulatory and operating envi- ronment are creating new opportunities for innova- tive energy production. The future will show how the state administration, Fingrid, and electricity producers succeed in building a sustainable and flexible system capable of responding flexibly to the forecast growth in electricity consumption, production challenges, the task of integrating new forms of technology with society’s needs, and the geopolitical challenges that have caused significant volatility in energy markets in recent years.
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