The government published its fiscal plan for 2026-2029.The Growth Series policies are intended to facilitate energy investment in Finland and the development of the energy economy, especially in eastern Finland.
The Government will speed up the construction of the transmission network throughout the country by removing obstacles for network operators to build a 400 kV distribution network and by enabling distribution network operators to develop the network more comprehensively to meet the needs of network users. The government will also submit a proposal on the high-voltage distribution network and the law is due to enter into force on 1 July 2025.
The main objectives are to expand Fingrid's investment programme in the grid from the current level of around €4 billion to €5.2 billion and to develop Gasgrid's national hydrogen network by 2035. Fingrid's balance sheet will allow for the immediate launch of further investments and the government is also preparing to provide Fingrid with the necessary capitalisation.
The development of the network infrastructure in Eastern Finland will be examined
In order to implement energy-intensive investments in Eastern Finland, possibilities for accelerating 400 kV transmission links will be explored. Fingrid intends to launch the EIA process for the Huutokoski-Kontiolahti project as soon as possible. The acceleration of other 400 kV interconnection investments will be further investigated by the company.
The Government will ensure that the gas and hydrogen network company Gasgrid Finland Oy has the necessary investment capacity to support new industrial investment in Finland. The Government is prepared to capitalise the company to make investments in the hydrogen network so that by 2035 Finland will have a nationwide hydrogen market and a national hydrogen infrastructure to serve it.
The conditions for Regional Hydrogen Valleys and investments are also created through licensing and project preparation. During 2025, Gasgrid and Fingrid will prepare a joint report for the government on the energy infrastructure (including hydrogen and electricity grids) and additional investments required for industrial hydrogen investments for the period 2027-2035.
The aim is to safeguard Finland's competitive advantage by creating new growth in the hydrogen economy, in particular through the combined use of biogenic carbon dioxide and clean electricity. Finland's strengths will be translated into investment, for example in the production of synthetic fuels to strengthen European self-sufficiency.
For carbon capture, pilots will be launched on industrial carbon sequestration, further processing and storage to put development on the right, upward path.
Accelerating authorisation
The government will ensure that the new licensing authority is adequately resourced when it is set up (1.1.26). The Government will ensure the continuation of the priority procedure for certain clean transition projects and the necessary resourcing.
If the EU's framework programme for state aid exemptions is extended, the Finnish tax credit for large investments will continue. Possible extensions to the scope of the State aid scheme, such as technical carbon sinks, will be introduced as widely as possible. The new national scheme will allow for a range of investments in carbon capture, utilisation and storage. The extension of the use sector to a multi-investment investment programme will also be considered.
The government also aims to strengthen the defence RDI function. This function will enable the MoD to develop, test and validate technological solutions for defence needs and coordinate cooperation between the MoD, industry and research actors in this area.
