Project development of the solar power project
A solar power plant requires land, a building permit and a grid connection. The detailed licensing process is determined on a project-by-project basis. The grid capacity and connection conditions are determined by the grid company. The total time span for a solar power project, from identifying a suitable site to starting production, is around three to five years, although there are significant differences between projects.
The solar power project starts with the identification of a suitable site. Planning a project requires control of the project site, which can be achieved either through ownership of the site or through a land lease. When assessing the site, factors such as solar radiation, existing zoning plans, the views of the municipality, the size and developability of the site and the distance to the grid connection are taken into account. Once a suitable site is found, land leases will be negotiated with landowners. Land lease agreements ensure control of the site.
The permits and possible zoning required for a solar power project will depend on the size and location of the project. Before a solar power project can be licensed, the local ELY (Centre for Economic Development, Transport and the Environment) must check whether an environmental impact assessment (YVA) procedure is required. From a land-use perspective, a solar power project will normally require a STR (suunnittelutarveratkaisu) licence, which is the basis for a building permit for the project. In addition to the STR, a special permit is required if an existing master plan does not define the area with designations that allow solar power generation. For large projects, or projects located in or adjacent to a zoned area, a zoning plan may also be required. In addition, a solar power plant requires a construction or operation permit (there is only one type of permit left under the Building Act (751/2023) applicable from 1 January 2025: a building permit). Other permits, such as derogation permits under the Water Act (587/2011) and the Nature Conservation Act (9/2023) may also be required in some situations.
The grid connection is arranged by concluding a connection agreement and a grid service contract with the grid operator. If there is no grid connection point in the immediate vicinity of the project site, either an underground cable or a connection cable will be built between the solar power plant and the grid connection point. If the connection line is 110 kV or higher, it will require a project authorisation from the Energy Authority.
Towards the end of the permitting process, or once it has been completed, the final technical designs and component choices are made, and the financing of the project is planned and prepared for the investment decision.