Background
Long awaited regulatory changes according to the government proposal 197/2024 amending the Electricity Market Act (588/2013) have been approved and will enter into force on 1 July 2025. While the amendments are primarily focused on retail market issues, one of the key changes is the removal of unnecessary legislative barriers for the purpose of facilitating hybrid projects comprising of one or more production technologies and BESS.
Energy storage technologies are recognized as a key part of a flexible and resilient electricity system. As renewable energy production continues to grow, hybrid projects help mitigate variability, support grid stability and optimize energy market operations. The legislative changes are a step forward in facilitating the integration of these technologies, improving access to markets and unlocking new revenue streams for investors and operators. In turn, this will accelerate the transition to a more sustainable and competitive energy sector, benefiting both market participants and end consumers.
New definition of a connection line
The definition of a connection line was amended, and as of 1 July 2025, one or more power plant(s) and one or more connected energy storage(s) can be connected to the grid with the same connection line. As a result of the changes made to the Electricity Market Act, a connection line connecting a hybrid project including both production units and BESS will not require a network permit, regardless of whether the relevant power plants and energy storages are located on the same property or property group or not. This change has been highly anticipated as the connection of multiple projects with the same connection line have been prevented solely because the projects, although located near one another, were situated on different properties or property groups.
Pending further changes to grid connection regulation
The Ministry of Economic Affairs and Employment is proposing further changes to the definition of a connection line in (and to certain other provisions of) the Electricity Market Act as a working group established by the Ministry to address high-voltage electricity grid matters published a report drafted in the form of a government proposal in December 2024. This report, which was circulated for comments in the beginning of 2025 and in most respects focuses on facilitating high-voltage connections and was originally scheduled to be submitted to the government in week 17 of 2025, is still pending. The high-voltage proposal includes many interesting renewable electricity production-friendly aspects to be reviewed in a separate blogpost.
The reason for the approach with two separate changes to the connection line definition is that there is an urgent need to resolve the issues relating to the connectability of hybrid projects including BESS. Therefore, it was decided to make these amendments to the regulation now and leave the changes requiring more time-consuming preparation to the later stage.
Future outlook
All in all, the amendments to be entered into force in July 2025 as well as the proposed future changes reflect the fast-paced nature of energy transition. By paving the way for hybrid projects, Finland positions itself at the forefront of enabling technology-neutral, market-based solutions that align with its carbon neutrality goals.
Given Finland’s substantial untapped potential for renewable electricity production, grid capacity remains a critical issue for the future. Even though these overlapping amendments create some confusion in the already unpredictable renewables market and legislative environment, these mark a decisive step towards attracting clean energy investments to Finland’s vibrant energy market.
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