How offshore wind transmission assets are planned, constructed, and financed in Finland — from the world’s first ice-designed offshore wind farm to a 40+ GW pipeline.
Developer-build model — the project developer is responsible for building the grid connection from the offshore wind farm to Fingrid Oyj’s onshore connection point. Fingrid does not build or own offshore connection infrastructure.
Operates the 400/220/110 kV main grid, identifies offshore wind grid connection points, develops grid to accommodate offshore wind. Responsibility extended to EEZ from 1 Jan 2026. Seven connection points identified (up to 9 GW)
Controls state-owned sea areas within territorial waters. Organises competitive tendering for territorial water offshore wind projects. Key projects: Korsnas, Ebba, Edith
Council of State
Finnish Government
Designates EEZ offshore wind areas for tendering, grants exploitation permits to tender winners, grants research permits in the EEZ, decides on granting rights of use for territorial water projects
VALO
Consolidated permitting authority (from 1 Jan 2026)
Merges Valvira, AVIs, and ELY Centre environmental units. One-stop-shop for environmental permitting. Priority handling for offshore wind with 1-year target processing time (until 2030)
Traficom
Transport & communications regulator
Issues aviation obstacle permits, publishes offshore wind and shipping coordination guidelines (minimum 1.5 km from navigation routes), assesses impacts on maritime radar and navigation safety
Finnish Defence Forces
National defence
Provides views on project acceptability. Has effectively restricted offshore wind in the Gulf of Finland since late 2013 due to radar interference concerns
Ministry of the Environment
Environmental policy
Oversees maritime spatial planning, Natura 2000 assessments, EIA framework, coordinates Velmu biodiversity mapping. MSP update under way (2024–2027)
Municipalities
Local planning authority
Responsible for zoning in public water areas (territorial waters). Issue construction permits under the Construction Act (751/2023, in force from 1 Jan 2025)
AVI (merged into VALO)
Regional permitting (legacy)
Granted water permits under the Water Act and environmental permits under the Environmental Protection Act. Merged into VALO on 1 January 2026
ELY Centres (merged into VALO)
Regional development (legacy)
Supervised EIA procedures. Determined whether EIA was required for projects below the mandatory threshold. Environmental units merged into VALO on 1 January 2026
2026 Authority Reform: The consolidation of AVI, ELY Centre environmental units, and Valvira into VALO on 1 January 2026 is the most significant permitting reform affecting offshore wind. Green transition projects receive priority processing until 2030.
Finland operates a developer-build model for offshore wind grid connections: the project developer is responsible for building the grid connection from the offshore wind farm to Fingrid Oyj’s onshore connection point. This aligns with Sweden’s approach and contrasts with the Dutch and German TSO-build models.
There are two distinct regulatory zones, each with its own area allocation process but the same developer-build principle for grid connection:
Zone
Governing Law
Area Allocation
EEZ
Act on Offshore Wind Power in the EEZ (937/2024), in force 1 Jan 2025
Government designates areas for competitive tendering. Energiavirasto organises tenders. Winners receive exploitation permit
Territorial Waters
Existing legislation (Water Act, Construction Act)
Metsähallitus organises competitive tendering for state-owned public water areas. Municipalities handle zoning
EEZ Tendering Process
The 2025 Act replaced the previous open-door/research-permit system with a state-led tendering regime:
Step
Description
1. Government selects areas
Council of State designates offshore wind power areas for tendering based on the maritime spatial plan, national objectives, grid availability, and coordination with other maritime activities
2. Strategic Environmental Assessment
Government conducts an SEA of the proposed areas before the area decision
3. Government Decree
Detailed tendering rules established by decree (expected October 2025)
4. Energy Authority runs tender
Single-round sealed-bid format. Energiavirasto evaluates bids on a 100-point scale
5. Winner receives exploitation permit
Council of State grants the exploitation permit (~30-year duration). Does not authorise construction
6. Developer obtains permits
Developer must subsequently obtain water permits, complete EIA, and obtain other permits
Tender Selection Criteria (100-Point System)
Component
Weight
Details
Price (exploitation fee)
50 points
Annual fee offered in EUR per installed MW
Project expertise
~16.7 points
Development and construction experience with minimum 100 MW wind capacity (offshore weighted higher); experience cannot exceed 8 years old
Environmental measures
~16.7 points
Renewable energy use during operations, bird radar monitoring commitments
Energy system flexibility
~16.7 points
Battery storage construction or frequency reserve participation commitments
Pre-Qualification Requirements
Requirement
Threshold
Financial capacity (Option A)
EUR 600 million balance sheet with minimum 15% equity ratio
Financial capacity (Option B)
EUR 1 billion in assets under management
Experience
Project management of minimum 100 MW wind turbine capacity (both development and construction)
Max 1 win if holding 2 existing permits; max 2 wins if holding 1 existing permit
Runner-up mechanism: If the winner fails to apply for the exploitation permit within 4 months, the runner-up has 6 months to apply. This provides a safeguard against tender failures.
Key EEZ Timeline
Date
Milestone
1 January 2025
Act on Offshore Wind Power in the EEZ enters into force
July 2025
SEA assessment plan open for statements
October 2025
SEA completed; Government Decree on tendering enters into force
End 2025
Government decision on first areas (4 areas proposed: 2 in Bothnian Sea, 2 in Bothnian Bay)
January 2026
First competitive tender commences
Summer 2026
Winner of first tender selected
Key Legislation
Law
Status
Scope
Act on Offshore Wind Power in the EEZ (937/2024)
In force 1 Jan 2025
Area selection, tendering, exploitation permits, research permits in EEZ
Electricity Market Act (588/2013, amended)
Amended; in force 1 Jan 2026
Extends TSO responsibility to EEZ, enables connection grids for generation, allows third-party high-voltage grid construction
Water Act (587/2011)
In force
Water permits for all offshore wind construction
Environmental Protection Act (527/2014)
In force
Environmental permits
Act on EIA Procedure (252/2017)
In force
Mandatory EIA for projects ≥ 45 MW or ≥ 10 turbines
For projects in Finnish territorial waters (out to 12 nautical miles), state-owned public water areas are managed by Metsähallitus. The framework differs significantly from the EEZ regime.
Metsähallitus Competitive Tendering
Step
Description
1. Policy confirmation
Ministerial Committee on Economic Policy confirmed tendering principles (December 2021)
2. Area approval
Council of State approved five offshore wind power areas (end of 2023)
3. Competitive tendering
Metsähallitus launches tenders, seeking commercial partners who purchase development rights, lease offshore sites, and build/operate wind farms
4. Zoning
Municipalities handle zoning (same as for onshore projects)
5. Construction permits
Building permits issued by the municipality
Key difference from EEZ: Metsähallitus acts as property owner/landlord rather than a regulator. The process is governed by private law (property management) rather than public administrative law. Government decides on granting rights of use after the tender process.
Partner tender concluded Sep 2025 without a winner. Arenso Oy engaged for EIA programme planning. Will relaunch
Edith
Metsähallitus (seeking partner)
TBD
Partner tender concluded without a winner. Will be relaunched
Municipal Water Areas
Where offshore areas fall within municipal water areas (not state-owned public water areas), the municipality itself can grant water area use rights. This applies in limited areas close to shore.
Research Permits in EEZ (Pre-2025 Legacy)
Before the EEZ Act entered into force, the Government could grant research permits in the EEZ allowing developers to conduct surveys and studies. These were non-exclusive and did not guarantee construction rights.
Project
Developer
Location
Capacity
Validity
Voima
Ilmatar Energy Oy
Off Jakobstad, EEZ
Not specified
Until 30 Oct 2024
Norrskar
Ilmatar Energy Oy
Off Kaskinen, EEZ
Not specified
Until 30 Oct 2024
Tuulia
Eolus Finland Oy / Tuulia Offshore Ab
34 km west of Pori, EEZ
1,500 MW
Until 30 Oct 2024
Wellamo
Wellamo Offshore Ab
88 km west of Pori, EEZ
2,000 MW
Until 30 Oct 2027
Åland Islands: The autonomous Åland Islands have their own legislative framework. Major projects include OX2/Ålandsbanken’s Noatun North (~5 GW) and Noatun South (~5 GW). Coordination with mainland Finnish authorities (especially Defence Forces) is required.
The offshore wind permitting process differs between territorial waters and the EEZ. Both require multiple permits from different authorities, but the EEZ route has the Government as the primary permitting authority rather than municipalities.
Territorial Waters Permit Stack
Permit / Assessment
Authority
Legal Basis
Notes
Zoning plan
Municipality
Land Use and Building Act
Offshore areas zoned like land areas
EIA
ELY Centre (from 2026: VALO)
EIA Act (252/2017)
Mandatory for ≥ 45 MW or ≥ 10 turbines
Natura assessment
ELY Centre / VALO
Nature Conservation Act
Required if project may affect Natura 2000 sites
Water permit
AVI (from 2026: VALO)
Water Act (587/2011)
Always required for offshore wind
Environmental permit
AVI (from 2026: VALO)
Environmental Protection Act
Required if significant environmental impacts
Construction permit
Municipality
Construction Act (751/2023)
Verifies technical compliance with zoning (in force from 1 Jan 2025)
Aviation obstacle permit
Traficom
Aviation Act (864/2014)
Required for turbines and tall structures
Defence assessment
Defence Command
Various
Geotechnical surveys require a permit
Water area use agreement
Metsähallitus
Property management
Private-law agreement for use of state-owned sea areas
EEZ Permit Stack
Permit / Assessment
Authority
Legal Basis
Notes
Exploitation permit (from tender)
Council of State
EEZ Act (937/2024)
Exclusive right to develop; ~30-year duration; does not authorise construction
EIA
ELY Centre / VALO
EIA Act (252/2017)
Always required for EEZ projects. May trigger transboundary EIA (Espoo Convention)
Water permit
AVI / VALO
Water Act (587/2011)
Always required; covers every turbine
Aviation obstacle permit
Traficom
Aviation Act (864/2014)
Same requirements as territorial waters
Defence assessment
Defence Command
Various
Defence Forces provide views on project acceptability to Government
Cable permits
Various
EEZ Act (1058/2004)
Cable construction in EEZ governed by existing EEZ legislation
No zoning required in EEZ: Unlike territorial waters, EEZ projects do not require a municipal zoning plan. Area designation is by Government decision.
Defence Forces Constraints
Area
Status
Gulf of Finland
Effectively closed to offshore wind since late 2013 due to radar interference concerns
West coast / Bothnian Bay
Generally more permissive, though Defence Forces assessment still required
Åland area
Assessed per project — Noatun North has received approval, Noatun South has not
Priority Processing (2026 Onwards)
Under the new VALO authority, green transition projects including offshore wind receive priority handling with a target processing time of one year for environmental permits, water permits, or joint proceedings. This priority provision extends through 2030.
Under Finnish law, the developer is responsible for building and financing the grid connection from the offshore wind farm to Fingrid Oyj’s designated onshore substation. This includes all offshore cables (array and export), offshore substations/platforms, and any onshore cable from landfall to the TSO connection point.
Fingrid is responsible for reinforcing the main grid (400 kV) to accommodate new offshore wind connections. These reinforcement costs are recovered through regulated grid tariffs paid by all grid users — not charged directly to the developer.
Fingrid’s Seven Connection Points
Connection Point
Region
Substation Status
Timeline
Notes
Inkoo
Southern Finland
Existing
N/A currently
Gulf of Finland; restricted by Defence Forces
Raisio
Southwest Finland
Existing (Lieto)
Late 2020s
Ulvila
Satakunta (west coast)
Existing
2020s
Near Pori / Tahkoluoto area
Närpiö
Ostrobothnia
Planned
Early 2030s
Under Fingrid investment programme
Vaasa (Tuovila)
Ostrobothnia
Existing
Early 2030s
Near Korsnas project
Kokkola
Central Ostrobothnia
New required
Early 2030s
Conditional on local electricity consumption increase
Raahe (Hanhela)
Northern Ostrobothnia
Planned
Mid-late 2030s
Conditional on local electricity consumption increase
1.3 GW connection limit: Under Fingrid’s current connection framework, the maximum generation capacity at any single grid connection point is limited to 1.3 GW. This is a Fingrid operational limit/modelling assumption, not a statutory cap enacted in law.
Grid Reinforcement Investment
Item
Amount
Fingrid existing investment programme
~EUR 4 billion
Additional offshore wind reinforcement
~EUR 600–700 million
New/reinforced 400 kV lines needed
~1,000–1,100 km
Primary reinforcement areas
Central Ostrobothnia, Southwest Finland, Uusimaa
Electricity Market Act Amendments (In Force 1 Jan 2026)
Change
Detail
TSO responsibility extended to EEZ
Fingrid’s obligations now cover the Finnish EEZ, not just territorial waters
Connection grids for generation
Multiple power plants may share a common connection grid without requiring an electricity network licence
Third-party HV construction
Distribution system operators and third parties can now build grids above 110 kV
Flexible connection agreements
Staged grid capacity connections are permitted
Hybrid connections enabled
Fingrid can enable hybrid connections with a maximum of 1,300 MW generation to the main grid
Finland does not currently operate a dedicated subsidy scheme for offshore wind. The country has taken a deliberately market-driven approach. Since 2018, all new wind power in Finland has been developed on fully merchant/subsidy-free terms.
Era
Mechanism
Notes
2011–2017
Feed-in tariff (Act 1396/2010)
Sliding premium tariff for renewable energy. Closed to new wind power at end of 2017
2018
Single technology-neutral auction
Seven projects accepted. No further auctions held or planned
2018–present
Fully merchant / PPA-based
Revenue from wholesale electricity market (Nord Pool) and/or corporate PPAs. No CfDs or feed-in premiums
Exploitation Fee (EEZ)
Under the new EEZ tendering regime, the exploitation fee offered by the winning bidder is payable to the state. This fee (EUR per installed MW annually) is a cost to the developer, not a subsidy. It represents the price paid for the exclusive right to develop the area.
Grid Tariffs & Connection Costs
Cost Category
Detail
Developer-borne costs
Full cost of offshore-to-onshore grid connection infrastructure + standard Fingrid connection charges
Fingrid-borne costs
Reinforcement costs downstream of the connection point, recovered through regulated grid tariffs
Socialised costs
~EUR 600–700 million in offshore wind grid reinforcements ultimately socialised across all tariff payers
Property Tax Reform
Element
Detail
Proposed effective date
Valuation Act from tax year 2025; Real Estate Tax Act from tax year 2030
Power plant rate
Weighted average 3.09% (based on current municipal rates)
General building rate
Weighted average 1.14%
Revenue timing
Property tax revenues expected from the 2030s once EEZ projects are operational
EUR 200M demonstration grant (2026–2029): A EUR 200 million grant allocation supports large demonstration energy projects. Suomen Hyötytuuli received EUR 30M for the Tahkoluoto demo, though this demo phase was subsequently cancelled.
Single pilot turbine installed at Tahkoluoto, Pori by SuomenHyötytuuli.
Feed-in tariff enters force
Feed-in tariff system (Act 1396/2010) enters into force for renewable energy.
Gulf of Finland blocked
Finnish Defence Forces effectively block offshore wind development in southeast Finland and the Gulf of Finland due to radar interference concerns.
Tahkoluoto completed
Tahkoluoto offshore wind farm completed — 10 turbines (mix of 2.3 MW and 4.2 MW), 157 GWh annual production. World’s first offshore wind farm designed for ice conditions. Feed-in tariff closed to new participants.
Last renewable energy auction
Single technology-neutral auction held by Energy Authority (7 projects accepted). Last state support auction. Corporate PPAs begin to emerge.
Metsähallitus tendering confirmed
Ministerial Committee on Economic Policy confirms principles for Metsähallitus competitive tendering in territorial waters (December).
Marienborg Declaration + major deals
Marienborg Declaration signed (August): 8 Baltic Sea countries commit to 19.6 GW offshore wind by 2030. OX2/Ålandsbanken sign MoU for Noatun (~10 GW total) near Åland Islands (November). Metsähallitus/Vattenfall Korsnas reservation agreement (December). Four EEZ research permits granted.
Area approvals and working groups
Suomen Hyötytuuli receives EUR 30M EU-funded grant for Tahkoluoto extension demo (February). Council of State approves five offshore wind areas in territorial waters (end 2023). TEM appoints working group on offshore wind competitive position (October).
EEZ Act approved
Vilnius Declaration signed (April). Government publishes 17-point Action Plan (August). Fingrid publishes final offshore wind grid connection report: 7 points, up to 9 GW, EUR 700M additional investment (October). Parliament approves EEZ Act (December 12). President approves (December 19).
EEZ Act enters force
Act on Offshore Wind Power in the EEZ enters into force (1 January). Tahkoluoto demo phase cancelled; proceeding with full-scale extension (January). OX2 submits EIA reports for Laine and Halla. BOGI roadmap presented at BEMIP meeting (May).Metsähallitus Ebba/Edith tenders conclude without winner (September). Aurora Line enters commercial service ahead of schedule (November). Electricity Market Act amendment approved (October).
New era begins
Electricity Market Act amendment enters into force (1 January). VALO consolidated permitting authority launches (1 January). BOGI publishes regional offshore system study (January 22). Aurora Line formal inauguration (January 29).
Current Grid Connection Systems
Operational: Tahkoluoto (42 MW)
Parameter
Detail
Name
Tahkoluoto Offshore Wind Farm
Location
Tahkoluoto, Pori (west coast, Satakunta region)
Owner / Operator
Suomen Hyötytuuli Oy (now Tahkoluoto Offshore Oy following 2024 demerger)
Capacity
~42 MW (11 turbines: mix of 2.3 MW and 4.2 MW)
First turbine
2010 (single pilot)
Full completion
2017
Annual production
157 GWh (~8,600 electrically heated homes)
Distinction
World’s first offshore wind farm designed for frozen sea conditions
Grid connection
Connected to local distribution grid, with link to Fingrid main grid
Under Development: Territorial Waters
Project
Developer
Capacity
Status
Connection Point
Korsnas
Vattenfall / Metsähallitus
1.3–2.5 GW
Surveys underway, EIA in progress. Construction planned 2030s
Vaasa (Tuovila)
Tahkoluoto Extension
Tahkoluoto Offshore Oy
~600+ MW (40 x 15+ MW)
Demo phase cancelled Jan 2025; full-scale development. Est. completion 2027
Ulvila
Ebba
Metsähallitus
TBD
EIA programme planning commenced autumn 2025; partner tender to relaunch
TBD
Edith
Metsähallitus
TBD
Partner tender to be relaunched
TBD
Under Development: EEZ Projects
Project
Developer
Capacity
Status
Notes
Laine
OX2 (51%) / Ingka Investments (49%)
2.2 GW (~150 turbines, ~11 TWh/yr)
EIA report submitted April 2025
Gulf of Bothnia
Halla
OX2 (51%) / Ingka Investments (49%)
2.4 GW (~160 turbines, ~12 TWh/yr)
EIA report submitted Feb 2025
First EIA for a Finnish EEZ project
Tyrsky
OX2 (51%) / Ingka Investments (49%)
1.2 GW
EIA process underway
Bothnian Sea
Noatun North
OX2 / Ålandsbanken
~5 GW (~340 turbines, ~20 TWh/yr)
Defence Forces approval received. Koverhar LoI signed Apr 2025
Planned start 2030
Noatun South
OX2 / Ålandsbanken
~5 GW (~310 turbines, ~18 TWh/yr)
Defence Forces approval NOT received
Industry Capacity Targets (Renewables Finland)
Year
Target Capacity
2030
1 GW
2035
7 GW
2040
16 GW
2045
24 GW
Pipeline overview: Approximately 32 offshore wind projects are in the Finnish pipeline with combined capacity exceeding 40 GW. However, only 42 MW is operational (Tahkoluoto) and no large-scale projects are under construction. First large-scale commissioning is targeted for the early 2030s.
Risk scenario: If Finland fails to create a favourable investment environment, Renewables Finland estimates capacity could stagnate at just 1 GW by 2035 and 2 GW by 2040. The Government has indicated 15–26 GW by 2050 is possible but has not set a formal quantitative offshore wind target.
The most significant supranational framework for Finnish offshore wind is the Baltic Offshore Grid Initiative (BOGI), a cooperation between eight Baltic Sea TSOs.
TSO
Country
Fingrid
Finland
50Hertz
Germany
AST
Latvia
Elering
Estonia
Energinet
Denmark
Litgrid
Lithuania
PSE
Poland
Svenska kraftnät
Sweden
BOGI Key Milestones
Date
Milestone
Detail
April 2024
Vilnius Declaration
Governments mandate TSO cooperation on offshore grids
May 2025
BOGI Roadmap (Warsaw)
Up to EUR 90 billion investment by 2050. Three connection approaches: point-to-point, hybrid, cross-border radial
January 2026
Regional System Study
~13 GW of new cross-border interconnectors and up to 50 GW additional offshore wind by 2040
Framework for PCI/PMI selection, including offshore grid corridors in the Baltic Sea
EU Offshore RE Strategy (2020)
60 GW by 2030, 300 GW by 2050 across EU
Baltic Sea Declaration (2022)
8 Baltic countries commit to 19.6 GW offshore wind by 2030
ENTSO-E TYNDP / ONDP
Fingrid participates in Ten-Year Network Development Plan. TYNDP 2024 includes BEMIP offshore network analysis
Hydrogen dimension: The Baltic region is positioned as a net exporter of electricity to the rest of Europe. Three PCI hydrogen projects involving Finland (Nordic Hydrogen Route, Nordic-Baltic Hydrogen Corridor, Baltic Sea Hydrogen Collector) reflect the growing importance of offshore wind for both electricity and hydrogen systems.
Finland has not set a binding quantitative offshore wind target. Industry targets (Renewables Finland) and government scenarios (15–26 GW by 2050) exist but are not legislated
EEZ tender timing
First tender expected early 2026 with winner by summer 2026. Exact timeline depends on decree finalisation
Gulf of Finland
Defence Forces restrictions have blocked southern coast development since 2013; any relaxation would significantly change the pipeline
Grid connection capacity
Fingrid’s 7 connection points (up to 9 GW) are preliminary assessments; no investment decisions have been made
Ebba / Edith relaunch
Both Metsähallitus territorial water tenders concluded without selecting a partner; relaunch timing uncertain
VALO operational capacity
New consolidated authority launched 1 Jan 2026; processing capacity for offshore wind permits still being established
Support scheme
No dedicated offshore wind subsidy; market-based development depends on PPA availability and electricity prices
Hydrogen integration
Several PCI hydrogen corridor projects involve Finland but timelines and feasibility remain uncertain
Upcoming Developments
Timeline
Development
Summer 2026
Winner of first EEZ tender expected
2026–2027
Maritime spatial plan update under way
2027
Tahkoluoto extension targeted completion
Early 2030s
First large-scale offshore wind commissioning
2030
Industry target: 1 GW operational capacity
2035
EstLink 3 commissioning; industry target: 7 GW
2040
Industry target: 16 GW
2050
Government scenario: 15–26 GW (not a formal target)
Critical success factors: Finland’s offshore wind ambitions depend on successful EEZ tender launch, Defence Forces accommodation, timely grid reinforcement, and a stable investment framework without subsidies. The gap between the 40+ GW pipeline and 42 MW operational capacity is enormous.
This page was fact-checked using automated verification (OpenAI gpt-5.4 with web search). Two iterations were run against the research document, with findings independently verified before corrections were applied.
Iteration
Date
Errors Reported
Verified & Fixed
False Positives
Summary
2
2026-03-15
12
5
7
Key fixes: Metsähallitus territorial waters role corrected, EEZ Act approval date 27 Dec→19 Dec 2024, MSP update timeline corrected, EEZ tender scoring details flagged as provisional.
1
2026-03-15
15
8
7
Key fixes: removed unsupported EEZ building permit from Council of State role, updated Land Use and Building Act references to Construction Act (751/2023), 1.3 GW reframed as Fingrid operational limit not statutory cap, BEMIP dating corrected.
This reference is provided for informational purposes. Regulatory frameworks are complex and subject to change. Always consult primary sources and professional advisors for decisions. Last reviewed March 2026.