Recent Planned Changes to the Finnish Electricity Market Act

In Finland, there are various changes on the way in the Ministry of Economic affairs and Employment in terms of developing different aspects of the Finnish Electricity Market Act (588/2013, as amended) (in Finnish: Sähkömarkkinalaki) (the “EMA”). As a reflection of the constantly changing energy landscape, the Energy Market Act went through a series of large-scale amendments in 2023 ranging from the promotion of security of supply to implementation of consumer rights with the transposition of the Electricity Market Directive (EU) 2019/944 into national law. Currently, the Ministry has four legislation proposals in the pipeline for further amendments to the EMA, some of which have advanced to the extent that a government proposal is available. This article provides an overview of the key changes proposed by each project and the government proposal, if available.

1. Government proposal for Acts amending the Electricity Market Act and the Natural Gas Markets Act (Efficient integration of increasing electricity generation and consumption loads into the grid and high-voltage distribution network)

On 8 May 2025, the Finnish government published proposal (HE 45/2025 vp), which includes amendments that are meant to enter into force at the first instance. Its main function is to facilitate the integration of the increasing electricity generation and consumption loads into the main grid and high-voltage distribution networks. The proposal works toward implementing one of the main goals of Prime Minister Orpo’s Government Programme, which is to strengthen the functionality of the main grid. The proposed amendments are various and include the extension of the responsibilities of the Finnish transmission system operator Fingrid to cover Finland’s exclusive economic zone (the EEZ). Section 44 of the EMA currently extends Fingrid’s responsibilities to the whole of Finland. The proposed addition of the EEZ into Fingrid’s sphere of responsibility means that the responsibilities listed in section 45 of the EMA (such as the responsibility to develop the grid) would be extended to encompass offshore wind power in the EEZ, as well as the connection of offshore wind power to the mainland transmission grid.  Also, there are proposals regarding changes to the definition of grid connection which would amend the definition of grid connection which was already changed this spring 2025 and which shall be in force from 1 July 2025 onwards.

ii. Government proposal for Act amending the Electricity Market Act (implementation of the EU electricity market design) 

The aim of this upcoming government proposal is to implement the EU’s Electricity Market Design legislative package (2 directives and 3 regulations) into national law. The national implementation aims to improve consumer protection, promote investments, increase system flexibility and improve market transparency. The proposal would also enact a new Act that allows the regulation of retail electricity prices during an energy price crisis. The specific suggestions and reforms will be visible in the official government proposal, which is expected to be released after the proposal’s presentation during week 26 and submission to Parliament. Further information on the content or timeline is currently not available.

iii. Government Proposal for Acts Amending the Electricity Market Act and the Act on the Electricity Supply Contract Comparison Tool

On 28 November 2024, a government proposal (HE 197/2024 vp) was published which aims to implement changes proposed by the Smart Grid Working Group of the Ministry of Economic Affairs and Employment to the EMA. The changes include the reform of the current regulation of electricity contracts and the retail electricity market. The proposal was adopted by the Parliament on 25 April 2025. Among other amendments, the definition of a connection line was amended. Previously, Section 3 of the EMA defined a “connection line” as “an electric line constructed for a single electricity consumption site, energy storage facility, or one or more power plants, through which the connecting party or parties are connected to the electricity network." With the amendment, the new definition, in force from 1 July 2025, will define a connection line as “an integrated entity consisting of an electric line and other electrical devices and equipment necessary for connection to the electricity network, through which the following are connected to the network on behalf of the connecting party or parties: 

1. an electricity consumption site;
2. one or more interconnected energy storage facilities;
3. one or more power plants;
4. one or more power plants and one or more energy storage facilities connected to them.

The amendment of this definition means that the electrical equipment of the connecting part(y)(ies) does not constitute an electricity network (Finnish: “sähköverkko”) within the meaning of section 3 of the EMA, and operation is thus not subject to a permit from the Energy Authority as required by section 4 of the EMA.

What is notable is that even though this change has not come into force yet, there is already an ongoing proposal to change the recently amended grid connection definition so that the grid connection definition would not be available for multiple connectors jointly unless  the power plants form a single functional entity. However, the new changes based on the Government Proposal 45/2024 would allow for certain type of collective powerlines the construction of which would not require grid permit. These proposed changes would most likely make the connecting procedures more complex and the details of the process will only become clearer once the Government Proposal proceeds into actual law and the Finnish Energy Authority will issue more specific guidance.

Please contact the Helsinki Bird & Bird office for more information on the content of all of these proposals.