Electricity grid capacity allocation to be reformed – Projects connected to the grid will be required to meet connection maturity criteria in the future

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The growth in electricity production and consumption has created bottlenecks in electricity grids, as a result of which new connections have sought to reserve capacity at an earlier stage and with higher power determinations. This has led to situations where grid capacity has been reserved long before projects are implemented, which has been challenging in terms of the grid operator’s connection obligation under the Finnish Electricity Market Act. The purpose of the connection obligation is to ensure that all customers have access to the grid on an equal and non-discriminatory basis, on reasonable terms and within a reasonable time.

The situation described above has led to connecting parties seeking to reserve grid capacity at an increasingly early stage and, in some cases, also with the maximum power capacity, in order to minimise the risk of insufficient capacity for the project. Connection agreements have been concluded without any requirements for the progress of the projects. On the other hand, conditional connection agreements have been concluded at a very early stage of project development.

The Finnish TSO Fingrid and the Finnish Energy Authority have addressed these issues with two parallel measures. The Energy Authority has presented new procedural guidelines that require grid operators to define more specific criteria for how capacity is reserved from the grid, to what extent and when. Fingrid has also expanded its connection agreement inquiry procedure, which affects when connection agreements can be concluded. In this blog post, we will take a closer look at the Energy Authority’s new procedural guidelines and Fingrid’s expanded procedure.

As a result of the changes described below, grid operators must define their updated connection criteria by the summer. The new methods must also be taken into account in the connection agreement practices of grid companies and in the content of connection agreements. In the future, connection agreements will be made at a much later stage of project development than has been the case until now.

The Energy Authority’s new connection principles require, among other things, the definition of project maturity criteria

In November 2025, the Energy Authority issued a draft of new pricing methods and connection principles (hereinafter referred to as the methods), which the Energy Authority intends to confirm to distribution system operators and high-voltage distribution system operators. The aim is that the methods should be followed in connection agreements concluded in the distribution grid and high-voltage distribution grid from 1 June 2026 at the latest.

In the methods, the Energy Authority has described the connection principles binding on grid operators, which concern, among other things, the requirements for connection agreements, the reservation of capacity for new connections and the determination of connection power. Grid operators must comply with these principles at least in the high-voltage grid and in medium-voltage grid substation connections. For justified reasons, grid operators may also draw up corresponding principles for connections to other parts of the medium-voltage grid and low-voltage grid.

We have described the three most important changes below.

Maturity criteria for capacity reservation

One of the most significant changes concerns the stage at which a connection agreement can be concluded for a connection project. Under the new methods, the grid operator must define maturity criteria for connections, which must be met before the grid operator can make a binding connection offer to the connecting party.

Based on the maturity criteria, the grid operator assesses whether the project has progressed sufficiently far that it can be assumed to be likely to be completed and to require capacity from the grid in the near future. The Energy Authority has suggested that, for example, a valid building permit and zoning plan could, in principle, be considered sufficient maturity criteria. In certain cases, it may be possible to agree on a connection contract at an earlier stage if this is required for the sake of equal treatment and if the project can be reliably expected to be completed within the planned time frame. Even in cases where the construction of the site does not require a building permit or zoning plan, the maturity of the project should be assessed by other means.

In addition to maturity criteria, the methods also set requirements for connection offers and agreements. When submitting offers, short validity periods should be preferred so that the bidding process does not delay other grid connection agreements. The grid operator should also have the option to terminate the connection agreement if the project is delayed and the connecting party cannot demonstrate that the delay is due to circumstances beyond its control.

Principles for allocating connection capacity

Another key change concerns how limited grid capacity is allocated among different connection applicants. Under the new methods, grid operators must define and publish the principles according to which capacity in their grids is allocated to connection applicants. The principles should be applied in cases where the full connection of a high-power connection to a new voltage level could cause capacity problems for existing connections or new conventional connections.

The grid operator must determine the connection power for each area and voltage level, above which the capacity allocation principle will be applied. Connections with so-called normal power should continue to be connected to the grid at their requested full capacity. The principles should be formulated in such a way that the grid cannot reserve all its capacity for a single high-power connection, but should always retain sufficient capacity for normal connections and existing connections in terms of power growth during reinforcement measures. Only once the grid has been reinforced could full connection capacity be made available to larger connections.

At the same time, the reform of the Electricity Market Act has clarified the status of flexible connection agreements, as flexible connection agreements will be an essential way of agreeing on a gradual increase in connection capacity. The amendment to the Electricity Market Act will oblige grid operators to offer flexible connection agreements from 1 January 2026.

Determining connection capacity based on actual need

The third key methodological reform concerns how connection capacity is determined. The starting point for determining capacity should be the connection capacity requested by the customer. However, the grid operator must ensure that it has the opportunity to check and monitor whether the requested connection capacity corresponds to the customer’s actual situation. The subscriber’s relevant project data and plans can be used to help determine the connection power. It is not always justified to determine the connection power on the basis of, for example, peak power or the nominal power of the equipment if the actual power is likely to be significantly lower.

It is also important that the connection capacity can be changed if necessary. The grid operator must have the right to reduce the connection capacity if the actual connection capacity is or is likely to remain lower than the reserved connection capacity.

Fingrid’s extended connection agreement enquiry procedure

In parallel with the Energy Authority’s methods, Fingrid has also revised its own procedures. In line with the Energy Authority’s methods, Fingrid has, since 20 November 2025, expanded the connection agreement inquiry procedure it applies to electricity storage facilities and large consumption connections in southern Finland from summer 2025 onwards, which applies to both connections to the main grid and connections via other grid companies. To the extent that connection to the distribution grid requires corresponding capacity from Fingrid’s grid, the procedure will also indirectly apply to distribution grid connections.

The procedure came into force in November 2025 for electricity storage facilities exceeding 5 MW and consumption sites exceeding 10 MW throughout Finland (except for the Jyväskylä, Tampere and Turku regions, where the limit is over 1 MW for electricity storage facilities and 2 MW for consumption sites), and it is intended to be introduced for production sites in early 2026.

In practice, the procedure means that Fingrid’s approval will be required more widely than before. With the expansion of the procedure, Fingrid’s approval must always be sought in order to conclude a connection agreement or increase the capacity of an existing connection agreement – even when connections are agreed through other grid companies. An enquiry about a connection agreement can only be made once the project to be connected has a legally valid zoning plan and a legally valid building permit, and if the connection requires the construction of a connection line of at least 110 kV, an application for a connection line redemption permit must have been submitted to the authorities.

 

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