2.10.2025

Fingrid extends restrictions on new energy storage facility connections in Southern Finland until 2029

Finland is currently experiencing an unprecedented interest in the construction of grid energy storage facilities. With more than 30 GW of new requests for storage connection, preventative restrictions have been placed on new connections due to the shortage in available grid connection capacity. All storage projects in Finland above 5 MW must from now on submit a connection contract inquiry to Fingrid. Fingrid will then determine the maximum capacity available at each connection point, aiming to balance local consumption and production growth. 

Key takeaways:

  • No new large-scale storage (> 5 MW) in the south before 2029 (until the completion of the Hikiä–Toivila grid expansion)
  • Developers should consider Central or Northern Finland, where capacity is still available.
  • Fingrid is considering piloting flexible connection models to allow earlier access in constrained areas, as currently considered in Fingrid’s draft main grid development plan for 2026–2035.

For investors and developers, this means:

  • Location strategy is now critical.
  • Maintaining an open dialogue with Fingrid throughout the whole project development phase is important to keep track of the capacity situation.
  • Financing risk arises where timelines depend on future grid expansions.

This is a timely reminder that proactive legal strategy is just as critical as the technology itself for project success. Castrén & Snellman is closely following the development of the electricity transmission sector and is advising clients on how to navigate Finland’s energy transition.

Latest references

Castrén & Snellman acted as legal advisor to Coöperatieve Rabobank U.A. in its capacity as sole lender and hedging bank providing senior financing to Olana Energy for a Battery Energy Storage Systems (BESS) portfolio in Finland. Our advice included preparing a legal due diligence report on the projects as well as advising on the negotiation of the various finance and project agreements. Olana Energy is a management-owned fast-growing independent power producer with an international pipeline of over 1 GW. The diversified portfolio of assets ranging from 5 to 30 MW reinforces the Finnish grid at a granular level.
Case published 18.11.2025
Castrén & Snellman was commissioned by the Ministry of the Environment to carry out a study on how the Circular Economy Act could be used to promote circular economy aspects in public procurement. Our report provides valuable information to the working group tasked with preparing the new Circular Economy Act. The report includes an overview of relevant strategies, action programmes and policies, a look at relevant legislation and case law, an assessment of the current state of circular economy procurement and examples of integrating circular economy aspects into public procurement from around the world. We end the report with concrete conclusions and a proposal for a new circular economy provision with justification. The proposal aims to maximise the regulation’s effectiveness and minimise any adverse side effects. The final report is available on the Circular Economy Act project’s Gateway to Information (in Finnish). The study was carried out by Anna Kuusniemi-Laine, Sanna Aalto-Setälä, Lotta Huhtamäki, Marja Ollila, Laura Vuorinen, Paavo Heinonen and Anna Ylitalo.
Case published 11.11.2025
Castrén & Snellman acted as legal advisor to Suomen Aurinkovoima Oy and its owners in a financing tender process and a financing arrangement implemented with Danske Bank to secure financing for the company’s future solar park projects. Suomen Aurinkovoima, established by Oulun Seudun Sähkö, Oulun Energia, Vantaan Energia and Savon Voima, is a company focused on increasing domestic solar power. The company manages solar park projects from planning to implementation and maintenance, and its goal is to build dozens of new solar parks across Finland by 2030.
Case published 22.10.2025
We are acting as the joint legal advisor to Oomi Oy and Lumme Energia Oy in a transaction whereby Lumme Energia will merge with Oomi. As from the completion of the merger, the combined entity will be the largest electricity retail and service company in the Finnish market. In 2024, Oomi reported a turnover of EUR 373.9 million and had approximately 110 employees. Lumme Energia’s turnover for the same year was approximately EUR 314.6 million and it had approximately 50 employees. The transaction is primarily driven by the recent developments in the electricity market and the strategic goal to develop competitive products and services. Another key objective is to further enhance the customer experience, which is a shared value between the two companies. As a result of the merger, Lumme Energia’s customers will transfer to Oomi, and Lumme Energia will become one of Oomi’s shareholders. The completion of the transaction is subject to an approval by the Finnish Competition and Consumer Authority.
Case published 29.8.2025