Finland sees historic shift as solar power surges while wind farm construction collapses

Finland is experiencing an unprecedented energy transition this year, with solar power capacity expanding rapidly while new wind farm construction plummets, reports national broadcaster Yle. For the first time, more solar energy than wind energy will be added to the grid—a historic reversal in the country’s renewable sector.

Nearly 500 megawatts (MW) of new solar capacity is under construction in 2024, shattering previous records. In contrast, wind power additions have collapsed to just 180 MW—less than a tenth of the 2,430 MW installed in 2022 and a fraction of last year’s 1,000 MW. The shift marks the first time solar has outpaced wind in Finland.

Cheap electricity halts wind projects

The collapse in wind farm construction stems from persistently low wholesale electricity prices, particularly during windy winter periods when supply outstrips demand. Anni Mikkonen, CEO of industry group Suomen Uusiutuvat, said current market prices make new wind projects unviable without long-term power purchase agreements (PPAs).

“Finland’s electricity is so cheap right now that building new wind capacity based solely on market prices isn’t profitable,” Mikkonen told Yle. She noted that future demand from industrial electrification—such as hydrogen plants and data centers—could revive wind investments, but most projects remain in planning stages.

Solar thrives on timing and cost efficiency

Unlike wind, solar power benefits from higher daytime prices during spring and summer, when wind generation is typically lower. Solar’s modest scale also avoids depressing market prices. “Wind and solar generate at different times—winter is windier, summer is sunnier,” Mikkonen explained, adding that Finland’s grid still has ample capacity for solar expansion.

Cost reductions and improved panel efficiency have further boosted solar’s appeal. Jukka Kaarre, CEO of Suomen Aurinkovoima, said his company aims to build 500 MW of solar capacity by 2029, including hybrid projects with battery storage. Current projects include a 15-hectare, 15,000-panel farm in Urjala (capable of powering 500 homes) and plans for larger sites in Loviisa, Nivala, and Oulu.

“Investment costs have fallen while returns have improved,” Kaarre said. “Solar is now a profitable business.”