Changes to the main grid fees and connection principles for electricity storages

The electricity system needs a lot more flexibility due to the energy transition. Electricity storage, or batteries, are an ideal solution. However, they must be located in the right places in the electricity grid so that they do not reserve the local connection capacity required by the electrification of society, such as heat production and industrial electrification.

There are hundreds of electricity storage projects underway in various parts of Finland. Individual electricity storage facilities can range in size from tens to hundreds of megawatts, with a power requirement equivalent to the electricity consumption of a medium-sized city. Electricity storages are excellent support to the objective of realising the thousands of megawatts of new flexibility needed for the energy transition. However, meeting this target will pose significant challenges to the electrification of the rest of society if the electricity storage facilities are located in challenging locations in terms of grid connection capacity.

The principles for connecting electricity storage facilities are developed

In Finland, electricity storage facilities operate in the same bidding zone and the geographical location of the facility is of little importance to the owner of the facility, unlike, for example, in the case of a district heating boiler.

The principles for connecting electricity storage facilities need to be changed from the current principles in order to connect them to the grid in addition to other needs. In the future, electricity storage facilities with a nominal capacity of more than 30 MW, which are to be connected directly to the Fingrid network, must be connected to the strongest nodes of the main grid, 400+110 kV or 400 kV substations.

In addition, Fingrid will explore ways to accelerate the connection of electricity storage facilities in areas and substations where there is a significant amount of connection capacity available for electricity storage facilities.

Changes to the main grid fees for electricity storage facilities

Unlike other network users, electricity storage facilities have been invoiced only for energy taken from the grid and supplied to the grid as part of their main grid service fees. In order to harmonise its pricing practices, Fingrid has decided to introduce a new component to the grid service fees, a capacity fee for grid energy storages, on August 1st, 2025. The introduction of this fee is subject to the confirmation by the Energy Authority of the proposed amendments to the service terms and conditions and service fee annexes of the main grid contract.

The capacity fee for grid energy storages is a component similar to the capacity fee for power plants, and it is billed to the electricity storage facility for the sum of the rated capacity of its consumption and production power. For example, a 20 MW electricity storage facility is charged a capacity fee based on its 40 MW capacity. In 2025, the electricity storage capacity charge will be €87.5/MW per month, i.e. half the capacity fee for a power plant.

In addition, Fingrid is planning a reform of the connection fee, which aims to increase the contribution of new entrants to the network reinforcement needs they create. This reform follows the principle that those who cause the need for additional infrastructure should bear the costs and seeks to create financial incentives for the location of connections so that the connection capacity of the grid can be efficiently used. For electricity storage facilities, this would mean an economic incentive to locate outside the consumption-dominated Southern Finland.

More information 

Onni Härmä, Customer Manager, Fingrid Oyj, puh. 040 687 1237