Fingrid’s study: Locating industrial facilities close to electricity generation increases overall connectability of the transmission grid

Growth in Finland’s electricity consumption is expected to accelerate particularly driven by data centre and electric boiler projects. If all projects that have signed connection agreements were implemented in full, they would increase Finland’s electricity consumption by nearly 40 per cent compared with the 2025 level. According to a study published by Fingrid, the efficient placement of new grid connections within Finland's power system could increase the overall connection capacity of the transmission grid by up to 20 gigawatts.

Electricity generation and consumption in Finland are unevenly distributed: over 70% of generation is located on the west coast and in northern Finland, while more than 50% of electricity consumption takes place in southern Finland. If this development continues, the need for new transmission lines – along with land-use impacts and long transmission distances – would continue to increase.

As a result of Fingrid’s investment programme of EUR 5.2 billion, the capacity of the transmission grid will be significantly strengthened over the next ten years, but growth is not unlimited. The growth in connection capacity enabled by transmission grid reinforcements increases the closer new electricity generation and consumption are located to each other.

Fingrid has examined how the geographical placement of location-independent industrial facilities and energy storage systems affects transmission grid connection capacity and connection lead times. According to Fingrid’s study, by locating the facilities more effectively, up to 20 gigawatts of additional transmission grid connection capacity can be achieved with the investment programme. This corresponds to dozens of major industrial projects which, if realised, could generate significant economic benefits for Finland. More efficient placement would also help reduce transmission grid investment needs, land-use impacts, and overall costs.

Another important step is the project being prepared by the Ministry of Economic Affairs and Employment to prioritise grid connection requests. “This is a highly welcome reform and will help address situations where connection capacity is scarce,” says Asta Sihvonen-Punkka, President & CEO of Fingrid.

“In addition to grid expansion, the appropriate placement of new facilities, and the prioritisation of grid connections, we also need flexible connection solutions and more efficient processing of expropriation permits. We must not forget the need for greater flexibility and new balancing capacity to support the power system and ensure security of electricity supply,” Sihvonen-Punkka adds.

Further information:

Asta Sihvonen-Punkka, President & CEO, Fingrid Oyj; tel. +358 50 573 9053 
E-mail addresses: forename.surname@fingrid.fi

Fingrid Study: Locating Electricity Consumption Close to Electricity Generation (pdf)