As we wrote in our previous blog on hybrid power plants, a change was made to the Electricity Market Act in the spring of 2025, allowing interconnected production units and energy storage systems to be connected to the power grid via a shared connection line, even if they are located on different properties. This change, along with other recent changes to the Electricity Market Act and developments in the market, reduces the costs of grid connection. These changes also help enable a more flexible electricity grid, where hybrid power plants can operate as an integral part of the overall energy system. The development of the power system will continue to be wide-ranging, and the size of generation plants is also expected to increase. In our view, future systems will increasingly involve energy production systems above 110 kV, so it is important that grid permits and bureaucracy do not become obstacles to large-scale projects.
Investments in the transmission grid and interconnectors can increasingly be substituted with advanced automation and local grid infrastructure. When Fingrid reported in September 2025 that the scarcity of connection capacity continues in southern Finland, it also revealed the staggering number of energy storage connection inquiries received ’over 30,000 megawatts’! Future systems must better support models in which consumption and production within a distribution area can be balanced. Effective coordination between pricing and flexibility is crucial. Local and regional optimization can significantly reduce the need for new large interconnectors from current renewable energy production areas to southern Finland. Here, software-based automation and local control play a central role.
"The Finnish energy market is undergoing significant structural change. Hybrid power plants, energy storage systems, and flexible grid solutions, alongside wind and solar power plants, play a key role as the electricity system becomes more decentralized and intelligent.," says Lasse Kankainen, Syncron Tech’s new Director of Business Development for renewable energy software solutions.
Electric transport is also contributing to the overall picture. Between January and June 2025, about one-third of all new passenger car registrations in Finland were fully electric. Alongside this, electrification of heavy transport is progressing, significantly increasing the scale of high-capacity charging stations. The development of charging infrastructure required for heavy transport is also being accelerated at the EU level.
Adding to this, the industrial sector has opportunities for diverse and market-relevant flexibility directly in production processes or, for example, through participation of electric boilers in the market. This will make sector integration a reality. Flexibility opportunities will continue to grow, and new requirements for the electricity grid will also increase in the future. We will certainly return to this topic in future blog posts.
Lasse Kankainen has joined Syncron Tech to lead the development of renewable energy software solutions. He brings additional expertise and experience to support Syncron Tech’s growth in this rapidly evolving sector. You can reach Lasse at lasse.kankainen@syncrontech.com.
