On 23 May 2024, the Ministry of Economic Affairs and Employment published the eagerly awaited draft government proposal on the act on offshore wind power in the exclusive economic zone and for certain related acts. The new regulation would create a model with which the state chooses the marine areas in the exclusive economic zone that are applicable to development of offshore wind farm projects and selects the project developers for those areas. The exclusive economic zone is an international sea area that the state of Finland has the right to exploit economically.
27.5.2024
Draft proposal on the new act on offshore wind power in the exclusive economic zone sent out for comments
Samuli Tarkiainen, Kanerva Sunila & Sonja Leinonen
Related services
Tags
The deadline for submitting comments on the draft proposal is 4 July 2024, so the right time to influence the contents of the regulation is now. It is estimated that the government proposal will be presented to Parliament in calendar week 39, which is the last full week of September. The acts are scheduled to enter into force on 1 January 2025.
The choice of offshore wind farm areas and project developers
The exclusive economic zone is currently subject to the Act on the Exclusive Economic Zone of Finland (1058/2004). The aim is that in future the new act on offshore wind power in the exclusive economic zone would apply to wind farms, electric stations and hydrogen production plants in the exclusive economic zone. However, electricity transport cables and hydrogen pipes located in the exclusive economic zone would still be subject to the Act on the Exclusive Economic Zone of Finland.
The offshore wind farm areas in the exclusive economic zone would be chosen by a government decision after an environmental impact assessment of plans and programmes is conducted. Project developers would be selected in a competitive tendering process organised by the Energy Authority, and the offer with the best price-quality ratio would determine the winner. Tenderers would receive points both for the exploitation fee they offer and for quality factors, including the tenderer’s financial situation, experience, knowhow and ability to further the project, environmental impact of the project, promotion of local acceptance, grid connectivity, security and factors required by EU regulation.
The winner of the competitive tendering process organised by the Energy Authority would receive the exclusive right to apply for an exploitation permit from the government for the area put out to tender. The exploitation permit would include terms and conditions in relation to factors such as the exploitation fee, operations, project deadlines and promotion guarantee. In addition to an exploitation permit, a wind farm project requires an environmental impact assessment procedure and a water management permit, among other things.
Connecting offshore wind power to the main grid
Increased offshore wind farm project development requires investments in the power grid as well. The Ministry of Economic Affairs and Employment is currently working on a reform of the Electricity Market Act to integrate the increasing power generation and growing consumption loads to the main grid and high-voltage distribution network. Fingrid recently published a study on preliminary possibilities to connect offshore wind power to the main grid. Fingrid welcomes feedback on the study until 23 June.
The experts in our Environment, Infrastructure & Natural Resources team and International Construction & Projects team are happy to answer question about offshore wind power in the exclusive economic zone and other related questions.
Latest insights
Article published 31.5.2024 – International Construction & Projects
Functional electricity infrastructure is the key to attracting investments to Finland
Article published 23.5.2024 – International Construction & Projects
Changes in the construction industry provide good grounds for updating the General Conditions for Building Contracts
Article published 27.3.2024 – Restructuring & Insolvency
A construction boom is just around the corner
Article published 18.1.2024 – International Construction & Projects
Bankruptcies in the construction industry are increasing – how to prepare for the contractor’s bankruptcy?
Samuli Tarkiainen, Antti Kaakkola & Jerker Pitkänen
Jaakko Honkala & Jerker Pitkänen
Pauliina Tenhunen, Jerker Pitkänen & Elina Pesonen
Elina Pesonen & Jerker Pitkänen
Latest references
YIT – Data centre construction agreements with XTX Markets
We advised the urban developer and construction company YIT on the drafting and negotiation of two construction agreements with the leading algorithmic trading firm XTX Markets for the development of two data centres in Kajaani, Finland, which are part of XTX Markets’ data centre complex. The first agreement, valued at approximately EUR 100 million and signed in December 2024, marked the commencement of the construction of the first data centre facility in Kajaani, establishing Kajaani as a strategic hub for high-performance computing infrastructure. Building on the success of this collaboration, YIT and XTX Markets entered into a second agreement in August 2025 to commence construction of a second data centre facility. This phase includes the delivery of the shell and core of the new building.
Case published 20.11.2025
Oomi – Expansion into mobile telecommunications
We assisted Oomi Oy in its expansion into the mobile telecommunications market with the launch of Oomi Mobiili, a new MVNO brand. Our work covered the preceding due diligence process as well as structuring and negotiating key partner agreements, laying a solid foundation for Oomi’s entry into the new market. Oomi Mobiili will operate as a virtual mobile network operator, offering customers the option to purchase a mobile subscription together with their electricity contract. The phased launch is set to begin in autumn 2025, with nationwide availability targeted for early 2026.
Case published 15.8.2025
City of Pori – Sale of 49% stake in Pori Energia to Polhem Infra
Castrén & Snellman is acting as the legal advisor to the City of Pori in its sale of a 49% stake in Pori Energia to Polhem Infra. Pori Energia, a multi-utility company, operates in various sectors including district heating, electricity distribution, and electricity generation through CHP and renewable sources. The company also provides wind power services and industrial energy solutions in the Satakunta region. This strategic partnership between the City of Pori and Polhem Infra aims to enhance Pori Energia’s financial stability and investment capabilities, enabling the company to further its efforts in the energy transition and continue delivering high-quality energy services to its customers. Polhem Infra, owned by Swedish state pension funds, focuses on investments in critical infrastructure, including renewable electricity generation, energy storage, energy distribution, digital infrastructure, and transport infrastructure. The transaction values Pori Energia at EUR 905 million.
Case published 31.1.2025
Finnish manufacturing company – Arbitration proceedings under the SCC rules
We successfully represented a Finnish manufacturing company in arbitration proceedings under the SCC rules against a global construction company. The dispute was governed by Finnish law and the seat of arbitration was Stockholm, Sweden. The dispute mainly concerned the termination of an erection contract and the right to compensation for delays of the project and for cost increases due to Russia’s invasion of Ukraine. The main questions in dispute were the lawfulness of the termination of the erection contract as well as the consequences of the termination such as the right to costs to complete the project after termination, the right to liquidated damages for delay of the project and adjustment of contract price due to cost increases. The total value of the dispute exceeded EUR 15 million.
Case published 8.1.2025