Energy storage
in Finland
Energy storage in Finland
Current regulatory developments
Updated September 2026
€6–9 billion battery sector investment pipeline
Fingrid €4 billion grid investment (2024–2033)
Grid code specifications for energy storage
Business Finland battery program (to 2028)
Five things to know about BESS in Finland.
No specific regulatory classification for commercial-scale batteries. There is no dedicated classification for BESS. Obligations under the Mining Act, Nature Conservation Act, Land Use and Building Act, and the Government Decree on Batteries and Accumulators apply, alongside EU legislation concerning nature conservation and land use. EU Electricity Market Reform implementation is underway (non-discriminatory tariff treatment for storage, flexibility framework). Fingrid has established Grid Code Specifications for grid energy storage systems producing at least 0.8 kW, and in 2023 set specific study requirements in areas where production of wind and solar power is high.
Revenue streams are shifting from Nordic frequency reserves toward wholesale market trading. Historically, the primary revenue streams have been Frequency Containment Reserves (FCR) and automatic Frequency Restoration Reserve (aFRR). However, increasing saturation of frequency reserve markets has compressed returns, driving a significant market transition toward optimization of intraday, day-ahead, and imbalance market trading (electricity arbitrage). Energy storage services remain valued for short-duration but rapidly required capacity adjustments, but the commercial focus is increasingly on capturing price spreads across wholesale markets.
No dedicated BESS subsidies exist, but innovation funding and RRF aid are available. Finland does not offer direct subsidies for standalone battery storage. However, the Ministry of Economic Affairs and Employment has granted 15 million in RRF investment aid for solar projects combined with energy storage. A new Business Finland program for hydrogen and batteries began in June 2023 and continues until 2028, including innovation funding; in early 2023, Business Finland offered €38 million, of which €4 million came through the EU's Recovery and Resilience Facility.
Grid capacity is a growing constraint addressed by major TSO investment. Fingrid has published its 2024–2033 investment program with planned grid investments of €4 billion (approximately €400 million annually), a fourfold increase on previous levels, reflecting the large demand for grid capacity. Grid capacity constraints, particularly on the west coast, remain a barrier to further deployment.
Finland's strategic position in the battery value chain is significant. The battery sector pipeline involves planned investments of €6–9 billion in the next five years, and employment of approximately 6,000 directly and 20,000 indirectly. However, key barriers include no domestic manufacturing of battery cells or electrolyte/separator materials, and the notable capital investments needed to launch production.
Credentials
Kommunalkredit Austria AG on financing Finland's largest battery storage project, the 100 MW/200 MWh SIMO BESS
SMA Altenso on the sale and EPC delivery of the 95 MW/220 MWh Alapitkä BESS project
Nuveen Infrastructure on investment into a 30 MW/41 MWh battery storage project developed by Ilmatar Energy, including developing a first of its kind optimisation contract
Multiple EPC and supply mandates for leading BESS equipment providers
Nika Renewables Sarl (Luxembourg) in the purchase of shares in Kymi BESS Oy (Finland) from Aquila Clean Energy Holding GmbH
Merus power Plc on multiple EPC and supply mandates
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