Report
Wind turbines on rocky Finnish coastline

Photo credit: Tuomas Jokela / VTT 2025

Finland

IEA Wind TCP Annual Report 2025

Country Report

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Introduction

Wind in Finland expanded significantly in 2025. Over 1 GW of land-based wind was added, with the total capacity reaching 9.44 GW at the end of the year. 99 % of installed capacity in Finland is onshore. Wind is currently the second largest source of electricity generation in Finland, behind nuclear. 2025 was an above average wind year, and wind power generation reached a new record of 22 TWh, covering 26.1 % of the electricity demand.

Expansion of wind power is expected to slow down in the coming years mainly due to lack of active support mechanisms for wind power in Finland, coupled with low and volatile electricity prices.

Finland's 2026 energy and climate strategy aims to a accelerate wind construction in the country, while balancing it with social acceptance. Measures include streamlined permitting and priority treatment for clean-transition projects, more strict siting and distance rules, stronger landscape impact assessment, and new decommissioning and restoration obligations backed by mandatory financial security.

For offshore wind, the strategy highlights enabling actions such as improved marine inventories, better financing conditions in the exclusive economic zone, and a lower offshore property tax in territorial waters, with national ambitions of 12 GW by 2040 and 20 GW by 2050. Offshore wind resource in Finland is good, but climate conditions especially sea ice in the gulf of Bothnia cause additional challenges for planned offshore wind projects.

Table 1. Key National Statistics 2025: Finland
Total (net) installed wind power capacity*9.433 GW
Total offshore capacity0.04 GW
New wind power capacity installed1.023 GW
Decommissioned capacity (in 2024)0 GW
Total electrical energy output from wind22 TWh
Wind-generated electricity as percent of national electricity demand26.1%
Average national capacity factor**28.1 %
National wind energy RD&D budget4.3 M€

Highlights

  • A new record of 22 TWh of wind power generation was reached in 2025. Wind now accounts for 26 % of electricity generation in Finland. Total wind capacity in Finland reached 9.4 GW at the end of 2025. The majority of this capacity has been built without any public support mechanism.

Market Development

Targets and Policy

The national energy and climate strategy [1], published in early 2026, aims to improve operating conditions for wind power, ensuring required expansion of electricity generation, as well as balancing social acceptability with an investment-friendly environment. Wind-related topics covered in the strategy include streamlining permitting processes, extending priority treatment for clean-transition projects, introducing decommissioning and restoration obligations with mandatory financial security, strengthening landscape impact assessment, setting new siting and distance rules, and addressing national security considerations especially in Eastern Finland. For offshore wind, the plan is to improve enabling conditions by lowering offshore property tax in territorial waters, securing financing conditions in the EEZ, and improving marine inventories. Finland aims to enable 12 GW of offshore wind buildout by 2040 and 20 GW by 2050 by offering sufficient sea areas mainly through competitive tenders and by enabling legislation.

Progress and Operational Details

Over 1 GW of new wind power was built in Finland in 2025. Wind remains the second largest source of electricity in the country, behind nuclear. Overall, the combined total wind capacity in Finland was 9443 MW at the end of 2025, with 99 % of this capacity being onshore. Total wind power generation in 2025 in Finland was around 22 TWh, corresponding to 26.1 % of the electricity demand. This marks a growth of 9% increase from the year before. [2] Wind year was slightly above average, with the Finnish Meteorological Institute (FMI) wind index being 103 % for 2025 (Figure 1).

Development of wind power capacity, electricity produced from wind and wind index in Finland over 20 years
Figure 1: Development of wind power capacity, electricity produced from wind and wind index in Finland over 20 years.

Turbines installed in Finland are large and tall. Average turbine installed in Finland in 2025 was 6.5 MW, with 160 m hub height and 170 m rotor diameter. [3] The largest individual wind power project in Finland was completed in 2025, a 455 MW wind power plant at Lestijärvi.

Matters Affecting Growth and Work to Remove Barriers

New Land use and building act under preparation would impose new limits to construction of renewables. The government has proposed a new mandatory minimum distance of 1250 m from a wind turbine to the closest residential building, which would apply unless the site is within a pre-designated wind area in the regional plan or unless 4/5 of nearby residents consent to a shorter distance. This has been estimated to have a significant negative impact on expansion of land-based wind power in Finland. The Finnish Environment Institute estimated that this would reduce the land available for wind power use by 33 %, most critically in Southern Finland.

In 2025, Finland experienced the lowest electricity prices (40 €/MWh) in Europe (when compared with the capital bidding zones). The number of negative or zero price hours decreased from 900 in 2024 to 603 in 2025, partly with the help of flexible demand – for example, power-to-heat and storage technologies in the district heating sector. Nevertheless, the low prices and high volatility still pose challenges for the profitability of projects.

The major driver for wind power projects is power purchase agreements (PPAs) with large companies, and the growth depends on new consumption.

Finland has strong onshore wind potential, but projects are concentrated on the western part of the country, while demand is in the south. According to the Finnish TSO Fingrid, north-south transmission needs will grow significantly towards 2040, and the transmission peaks can even increase fivefold [4]. High north-south transmission conditions are made more likely by high wind power production, cold weather, moderate electricity price and generation outages in Southern Finland. According to Fingrid's development plan for 2026–2035, most transmission grid investments will be directed toward new transmission connections from electricity generation-focused areas in Western and Northern Finland to consumption-focused areas in Southern Finland, as well as toward substations required by new industrial and power generation projects [5]. In addition, Fingrid highlights the availability of flexibility in the right place at the right time as a prerequisite for efficient transmission grid utilization.

Offshore wind potential is also significant but ice conditions make it more costly than in many other countries.

In 2025 Metsähallitus concluded a tendering process for two offshore wind projects (Ebba and Edith, combined capacity almost 3 GW). The tendering process concluded in September 2025 without selecting a winner. Metsähallitus will continue developing these projects further, including seabed surveys and environmental impact assessments and will relaunch the tender at a later date.

RD&D Activities

National RD&D Priorities and Budget

Based on the classification factors, in 2025, Business Finland funded altogether 13 wind related projects (EUR 4.3 million). There were 8 public research projects, accounting for EUR 3.1 million, and 5 company projects, accounting for EUR 1.2 million.

National Research Initiatives and Results

FMI continues developing its existing and new wind power forecasting methods. Presently, wind power forecasts are produced using two distinct methodologies:

  • Wind power calculations using wind forecasts produced by the MetCoop Ensemble Prediction System (MEPS)
  • Machine learning algorithms which are trained using various datasets including information on predicted wind speed and actual generated power and use predicted wind speed as input data for power forecast

FMI also focuses on implementing a Numerical Weather Prediction (NWP) model with Wind Farm Parametrization (WFP) that incorporates the effects of wind turbines on wind speed and other weather parameters.

Wind power plays an important role in the studies of the REPower-CEST project. Recent analyses include variable renewable energy droughts [6], applicability of cost-benefit analysis using wind power investment as a case example [7], as well as approaches and challenges in assessing wind energy externalities [8]. Related to the national energy and climate policy, the medium-term impact assessment estimates that Finland's annual wind power generation will rise to about 35 TWh by 2030 and about 60 TWh by 2050 [9], while the background study for Finland's long-term climate plan shows annual wind power generation increasing to roughly 60–100 TWh by 2050 (Figure 2) [10].

Electricity supply in Finland in the Business first, Environment first, Finland first and People first scenarios
Figure 2 Electricity supply in Finland in the Business first (BIZ), Environment first (ENV), Finland first (FIN) and People first (PPL) scenarios. Grid refers to import (export as negative). Translated from [10].

In the IceWind project, research parties VTT, Aalto and FMI together with industry conducted three different measurement campaigns to increase knowledge on offshore wind turbine structure in ice-covered sea areas. The largest test campaign was conducted in the Bothnian Bay to measure ice conditions and ice-structure interaction on a channel marker or lighthouse. Different foundation types were also measured on Aalto University's ice tank. Icing of wind turbine blades on marine environment was studied by measuring blade icing on onshore wind turbines located near the coastline. The results of these measurement campaigns were and will be used in model development to support the design of offshore wind turbines in ice-covered seas.

Collaborative Research

FMI is involved in multiple work packages within the EU Destination Earth On-Extreme Demands (DEODE) Digital Twin framework (https://destination-earth.eu), which include the following work packages related to wind and wind power:

  • DEODE Triggering Framework (DTF), which is aimed at daily detection of extreme weather events, with windstorms and flooding among others, to drive the triggering of On-Demand NWP model simulations with sub-kilometer horizontal grid spacing.
  • The creation of the European wind turbines database, incorporating locations and specifications of installed wind turbines, including power and thrust coefficient curves generated for each model.

FMI and the Lappeenranta-Lahti University of Technology conducted a study on Finland's electricity supply with high shares of wind and solar power [11].

FMI has modelled future rime icing conditions for energy infrastructure, that includes wind turbines and the transmission grid, over Fennoscandinavia [12]. This work has been a part of the 3-year EU Horizon project RISKADAPT (https://riskadapt.eu/).

Under IEA Wind, Finland participates in the following tasks:

  • Task 25/63 - Twenty Fifty Integration of Variable Energy (TWENTY-FIVE) (coordinator)
  • Task 54 - Cold climate wind (coordinator)
  • Task 59 - WREN,
  • Task 62 - Social Science
  • Task 46 - Erosion of Wind turbine blades

Impact of Wind Energy

Environmental Impact

A result article from the LandUseZero Project explored the CO2 reduction benefits of wind energy in the transition towards a carbon-neutral energy system. The main finding related to wind energy were: the marginal benefits of wind energy in replacing CO2 emissions in electricity generation are gradually declining as carbon emission-reduction targets are fulfilled. As a result, in transitioning towards a net-zero-carbon energy system, other issues like costs, land use, and social aspects will become more relevant than emission abatement. [13]

The Natural Resources Institute Finland published a synthesis report on offshore wind power impacts on marine life in the Gulf of Bothnia covering birds, fish and fisheries and marine mammals.

The largest potential impact would be on birdlife, large scale expansion of offshore wind power might increase the risk of collisions, especially during migration. Construction noise and seabed alteration might have an impact on fish spawning areas.

There are significant knowledge gaps currently related to bird migration routes, fish spawning areas and marine mammal habitats. The recommendation from the study is to increase collaboration between Sweden and Finland to close these gaps and coordinate selection of areas for wind power development. Some seasonal restriction might also be needed, for example, to protect Baltic ringed seal breeding. [14]

Economic Benefits and Industry Development

The majority of wind power related employment in Finland is in construction, operations and maintenance. Ownership of wind power is around 50% domestic, but heavily distributed, the largest operator in Finland owns roughly 7 % of the market [3]. For many municipalities wind power related real estate taxes have become a significant source of income. There are 10 municipalities, where more than 50% of real estate taxes collected in the municipality come from wind turbines.

The confederation of Finnish Industries (EK) commissioned a study on the impact of green transition investments on Finland's national economy. The most significant impacts will come from renewable energy, especially wind power. Assuming that 20 % of identified, planned green transition related projects would reach production phase, this would result in approximately 100,000 person-years of employment. Overall, these projects are equivalent of €58 billion in investments, with €26 billion of this being in wind power. [15]

Next Term

At the end of 2025, Renewables Finland reported that there was almost 1 GW of land-based wind power under construction in Finland and an additional 3.7 GW of projects that had been permitted. The rate of construction is expected to decrease sharply in the coming years. Electricity prices are quite low and there are no financial support mechanisms in place at the moment in Finland, resulting in difficult financial environment for wind power investment.

Offshore wind development in Finland will continue in 2026, with possible tenders launched for multiple offshore wind sites in Finnish waters both in nearshore and in the exclusive economic zone in more open waters, depending on economic circumstances.

Authors

Niina Helistö, niina.helisto@vtt.fi, VTT Technical Research Centre of Finland Ltd

Timo Karlsson, timo.karlsson@vtt.fi, VTT Technical Research Centre of Finland Ltd

Evgeny Atlaskin, evgeny.atlaskin@fmi.fi, Finnish Meteorological Institute

References

  1. R. Huttunen, P. Kuuva, M. Kinnunen, B. Lemström, and P. Hirvonen, Kansallinen energia- ja ilmastostrategia. Ministry of Economic Affairs and Employment of Finland Available: https://julkaisut.valtioneuvosto.fi/handle/11111/13397
  2. Finnish Energy, Energy Year 2025 – Electricity, https://energia.fi/wp-content/uploads/2026/01/Electricity-Year-2025-1.pdf
  3. Renewables Finland, Wind Power in Finland 2025, https://suomenuusiutuvat.fi/media/wind-power-stats-fin-2025-1.pdf
  4. Fingrid, Sähköjärjestelmävisio 2040, loppuraportti, https://www.fingrid.fi/globalassets/dokumentit/fi/kantaverkko/kantaverkon-kehittaminen/sahkojarjestelmavisio-2025/fingrid-sahkojarjestelmavisio-2040.-loppuraportti-10_2025.pdf
  5. Fingrid, Main grid development plan 2026-2035, https://www.fingrid.fi/globalassets/dokumentit/en/publications/main-grid-development-plan/fingrid_main-grid-development-plan-2026-2035.pdf
  6. J. Jasiūnas and T. J. Lindroos, 'Powering future Europe through variable renewable energy droughts', Energy Conversion and Management, vol. 358, p. 121493, Jun. 2026, doi: 10.1016/j.enconman.2026.121493.
  7. T. Kanto, 'Applicability of cost-benefit analysis in the EU Energy Efficiency Directive : insights from wind power', laturi.oulu.fi. Accessed: May 06, 2026. [Online]. Available: https://oulurepo.oulu.fi/handle/10024/61635
  8. A. Niemi, Tuulivoiman ulkoisvaikutusten arvioinnin lähestymistavat ja haasteet. in VTT Technology. VTT Technical Research Centre of Finland, 2026. doi: 10.32040/2242-122X.2026.T446.
  9. T. Koljonen, S. Soimakallio, T. Silfver, M. Kivinen (Ed.), Kansallisen energia- ja ilmastopolitiikan uudet toimet ja skenaariot (KEITO) – keskipitkän aikavälin vaikutusarviot. in VTT Technology. FI: VTT Technical Research Centre of Finland, 2025. doi: 10.32040/2242-122X.2025.T442.
  10. T. Koljonen, T. Silfver, S. Soimakallio, M. Kivinen, et al., Kansallisen energia- ja ilmastopolitiikan uudet toimet ja skenaariot (KEITO) − pitkän aikavälin ilmastosuunnitelman taustaselvitys. in VTT Technology. FI: VTT Technical Research Centre of Finland, 2025. doi: 10.32040/2242-122X.2025.T443.
  11. L. Gardemeister et al., 'Spatial optimization of solar PV and wind power capacity in Finland and correlation analysis', International Journal of Electrical Power & Energy Systems, vol. 173, p. 111386, Dec. 2025, doi: 10.1016/j.ijepes.2025.111386.
  12. O. Rockas, P. Isolähteenmäki, M. Laine, A. V. Lindfors, K. Hämäläinen, and A. Laakso, 'Future rime ice conditions for energy infrastructure over Fennoscandia resolved with a high-resolution regional climate model', Natural Hazards and Earth System Sciences, vol. 26, no. 4, pp. 1813–1834, Apr. 2026, doi: 10.5194/nhess-26-1813-2026.
  13. A. Lappalainen, 'Synteesiraportti: Merituulivoiman ympäristövaikutusten ennakointi ja seuranta Pohjanlahdella : Linnut, merihylkeet, kalat ja kalastus'. https://jukuri.luke.fi/server/api/core/bitstreams/ea7517bf-d870-4b38-b24a-8b6ee8fd06c9/content
  14. H. Holttinen, T. J. Lindroos, A. Lehtilä, T. Koljonen, J. Kiviluoma, and M. Korpås, 'Estimating the CO2 Impacts of Wind Energy in the Transition Towards Carbon-Neutral Energy Systems', Energies, vol. 18, no. 6, p. 1548, Jan. 2025, doi: 10.3390/en18061548.
  15. Gaia consulting: Vihreän siirtymän investointien talousvaikutukset, Loppuraportti_Vihrean-siirtyman-investointien-vaikutusten-arviointi-1.pdf