2.3.2026

Energy security is a matter of investment and competitiveness

The electricity price spikes at the start of the year were a stark reminder that the vulnerability of the energy system is not a theoretical risk. The windless cold weather had a significant impact on price levels, and this, paired with the global security situation, helped bring the question of security of supply back to the fore.

Energy security is not simply a question of price levels, however. It is a matter of investment, competitiveness and the overall functioning of the economy.

Russia’s war of aggression and the systematic destruction of energy infrastructure in Ukraine have shown that energy is a strategic instrument. More than 60 per cent of Ukraine’s electricity generation capacity has been destroyed during the war – and yet the system has held up, largely thanks to historical redundancy.

The lesson is clear: crises cannot be managed by reacting to them as they unfold. They are managed by preparing for them in advance.

The Finnish electricity system faces a structural challenge. As the share of renewable energy in electricity production increases, generation is increasingly concentrated in Ostrobothnia and Lapland. Electricity consumption, however, does not follow suit in a linear fashion, but will continue to be largely concentrated in southern Finland. This makes transmission networks a critical element of the entire system. The pressure to invest in transmission infrastructure is further intensified by the explosive growth in electricity storage projects as well as the broader electrification of industry and district heating networks. At the same time, the predictability of obtaining a grid connection is an essential prerequisite for attracting the industrial investments that Finland needs.

Resilience does not stem from a single solution. It requires a diverse electricity mix, robust transmission networks, storage capacity, and the protection of critical infrastructure against both physical and cyber threats.

Long-term infrastructure and energy investments require predictable regulation.

When a company makes an investment decision worth hundreds of millions or billions of euros, it needs to know what the rules are – and that those rules will not change midway.

Erratic regulatory changes translate directly into uncertainty in investment decisions. Energy security requires a regulatory framework that is investment-friendly, aligned with EU-level requirements, and flexible enough to adapt to changing circumstances.

Energy security is an integral part of the stability of Finland’s investment environment. Sufficient energy availability, functioning infrastructure and a clear set of rules form the foundation upon which industrial investments, data centre projects and green transition initiatives are built. Advancing these is in the interest of Finnish society as a whole.

Energy security is not an achieved state. It is an ongoing process that requires investment, cooperation and long-term commitment. The question is not whether we can hold our own against others, but whether we are building an operating environment in which growth and the green transition can be realised even in an uncertain world.

Latest references

Castrén & Snellman advised Nscale, a European AI infrastructure company, in connection with its planned data centre project in Harjavalta, Finland. The facility will be located in the Sievari industrial area. Castrén & Snellman’s advisory role encompassed the negotiation and execution of a site securing and development agreement (SSDA) with Fortum, as well as the preliminary land sale process for the Sievari site with the Town of Harjavalta. Under the SSDA, Fortum supports the advancement of Nscale’s project development, including grid connection design and permitting.
Case published 15.4.2026
We advised UK-based investment company Downing in its acquisition of the entire share capital of Tornionlaakson Voima Oy. Tornionlaakson Voima owns three hydropower plants in the Tengeliönjoki river system – the Portimokoski power plants in Ylitornio, the Jolmankoski power plants in Raanujärvi and the Kaaranneskoski power plants in Sirkkakoski. The power plants produce a total of approx. 45 gigawatt-hours of electricity per year. Tornionlaakson Voima’s daily operations will continue normally, and the transaction will not affect customers. The consummation of the transaction is subject to the approval of the Ministry of Economic Affairs and Employment. Downing has over 35 years’ experience in providing a wide range of investment solutions to the needs of institutional investors, advisers and retail investors. The company manages over £2 billion in assets in both the private and public markets and its current hydro power portfolio includes approx. 50 hydro power plants in the Nordics. 
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Castrén & Snellman successfully assisted Terrafame Ltd in environmental and water management permit processes concerning the company’s entire operations and the KL1 side rock area, on which the Supreme Administrative Court issued its decision on 12 February 2026 (KHO 366/2026 and 367/2026). The changes made to the decisions of the Vaasa Administrative Court as a result of Terrafame’s appeals, enable the company to implement its new strategy and develop its operations as planned. The decisions of the Supreme Administrative Court brought the nearly ten-year-long permit process to a close.
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We advised a leading global investment firm Brookfield, alongside a global sovereign wealth investor, on the Finnish law aspects of a EUR 1 billion holdco financing for DayOne Data Centers, a Singapore-headquartered developer and operator of hyperscale data centres. Structured as a seven-year secured holdco financing facility of €500 million, expandable to €1 billion – and secured by DayOne’s Finland platform – the financing will support the rollout of hyperscale developments in Lahti and Kouvola, providing nearly 300MW of planned capacity across Finland. The proceeds will also support DayOne’s global expansion across the EU and APAC, with flexibility to allocate to other key growth markets as required.
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