The proposed new Land Use Act could significantly change the conditions for building renewable energy in Finland. The government proposal, which advanced to Parliament last week, introduces a 50-hectare zoning threshold for solar power and stricter distance requirements between wind turbines and residential areas. These changes directly affect investments in the sector, risk slowing the growth of electricity production, and may weaken Finland’s ability to attract clean industrial projects.
Under the proposed legislation, all solar power projects exceeding 50 hectares would in the future require zoning. A large share of planned projects fall within the 70–150 hectare range, meaning the threshold would not only apply to exceptionally large projects but to a significant portion of Finland’s project pipeline. Renewables Finland considers the proposal to be inconsistent with the Government Programme.
“The proposal makes it harder to locate projects in precisely those areas where solar power would make the most sense in terms of impacts—and where, according to the Government Programme, it should be directed: namely, former peat production sites and other low-value land. This raises an unavoidable question as to whether the approach is sensible overall, if the goal is to accelerate rather than slow down the sector,” says Klaara Tapper, Advocacy Manager at Renewables Finland.
In practice, the proposed zoning threshold would lengthen project timelines, increase costs, and add uncertainty to the operating environment. It would delay investment decisions and, in some cases, prevent projects from moving forward altogether.
Impacts on wind power
For wind power, the proposal introduces a fixed minimum distance of 1,250 metres from residential areas, replacing the current case-by-case, impact-based approach with significantly stricter regulation. This change would effectively exclude a large share of wind power potential in southern Finland, as well as several industrial areas. Restricting wind power development in southern Finland would make it more difficult to balance the electricity system and weaken security of supply.
“A fixed distance requirement is a significant tightening that undermines the functioning of the entire energy system. As electricity demand grows rapidly, we need to be able to utilise wind power potential across the whole country. The proposed model prevents this,” says Matias Ollila, Director of Advocacy at Renewables Finland.
In addition, the proposed transitional provision could cause some projects to collapse, even if they are already well advanced and have received substantial investment.
“The transitional provision is problematic: it does not safeguard projects already underway, even though significant investments have been made and binding agreements concluded. Some projects could fall through overnight if the new rules are applied to projects still in the draft zoning stage. This weakens investment predictability, treats landowners unfairly, and disregards property rights,” Ollila concludes.
Electricity demand in Finland is expected to grow rapidly in the coming years due to industrial electrification. Affordable and quickly deployable renewable energy is, in practice, the only way to increase electricity production fast enough and enable industrial investments in Finland. Regulation should therefore support investment and the development of the energy system—not slow down the strong momentum already achieved in renewable energy growth.
Link to the legislative proposal (in Finnish)
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