Accelerating decarbonization through wind energy in Finland

Sustainability at Axpo goes beyond climate protection. It is based on four dimensions—Planet, People, Principles, and Progress—reflecting the commitment to long-term economic, environmental, and social responsibility beyond decarbonization. Because the energy transition requires more than ambition— it requires action. 

Axpo is strengthening its role in Europe’s renewable energy landscape. Last year, Axpo developed over 300 MW of new wind and solar capacity, mainly in France. At the same time, Axpo is continuing to develop its activities in Finland.

These developments are highlighted in the ‘Planet’ dimension of the latest Axpo Sustainability Report 2023/24, which shows how local partnerships and innovative energy solutions can accelerate the energy transition.

The most notable project in this expansion is the Lålax wind farm, located in the municipality of Vörå in Western Finland. Acquired by Axpo in October 2023, the Lålax comprises four turbines with a total installed capacity of 24.8 MW. Construction began at the end of 2024 and commissioning is now expected to take place in autumn 2025. Once operational, the wind farm will generate around 70 gigawatt hours (GWh) of renewable electricity per year.

Finland is rapidly expanding its renewable energy capacity, with wind power at the heart of its transition to a more sustainable energy system. Today, more than 90% of Finland’s electricity comes from low-carbon sources, with wind energy supplying nearly a quarter of the country’s power needs. The country’s goal of achieving net zero by 2035 makes it an attractive market for wind energy, yet new regulatory hurdles and grid capacity limitations must be overcome.

For Joakim Ingves, Axpo’s Head of Wind Activities in Finland, the Lålax project marks another milestone. “Alongside this progress, Axpo’s team in Finland has grown from just one person to six full-time and two part-time employees.” —reflecting both the company’s growth and its increasing role in the country’s renewable energy sector.

A country leading the renewable transition

Axpo’s expansion into the Finnish wind market comes at a time of shifting regulations. While Finland remains steadfast in its commitment to climate neutrality, the absence of direct government subsidies means wind projects rely on Power Purchase Agreements (PPAs) for financial viability.

Land use restrictions are also a challenge. “One of the biggest obstacles is the military buffer zones, particularly near the Russian border," Ingves explains. "Every new wind project must first obtain a statement from the Finnish Defence Forces before moving forward. Nowadays, the municipality has set their own set of rules, making the process significantly more complex.”

Beyond military restrictions, environmental regulations also play a crucial role in wind project development. Finland enforces strict biodiversity protections, particularly for birds of prey, with regulations varying by region. One key requirement is that wind turbines must be placed at least two kilometres away from eagle nests, limiting viable project locations. To further mitigate risks to bird populations, developers must conduct environmental impact assessments (EIAs), and implement monitoring technologies like bird radar systems, which can detect approaching birds and temporarily stop turbines if necessary.

“Interestingly, similar restrictions are now being applied to solar energy as well. So while wind development remains challenging, we’re navigating an increasingly complex but dynamic landscape.”

Despite these regulatory hurdles, Axpo was able to progress the Lålax project quickly thanks to the fact that all of the permits were already in place. This significantly reduced the development time for us and enabled the project to move forward faster than usual. “Normally, a project of this scale would take around three years to get off the ground,” says Ingves. “I’m proud to say that, in addition to the permits being in place, strong collaboration with our teams in Germany and France – as well as the expertise of our Nordic trading team – helped us move forward even faster.”

Taller turbines for Finnish forests

One defining feature of wind energy in Finland is turbine height. Unlike in Germany, where turbines are often installed on open farmland, Finnish wind farms are predominantly located in forests, which necessitates taller structures.

The Lålax wind farm will feature turbines with a hub height of 134 meters, maximizing efficiency in wooded terrain. “The terrain dictates the technology,” explains Ingves. “Because our turbines are surrounded by dense forests, they need to be significantly taller to capture optimal wind speeds.”

Beyond wind

While wind remains a core pillar of Finland’s energy transition, Ingves sees even greater potential for diversification. “Grid capacity is one of the major challenges we’re facing right now,” he notes. “If we want to achieve long-term energy security, we need a mix of solutions - not just wind, but also solar power and battery storage. At Axpo, we see huge opportunities to expand into these areas in Finland.”

The current geopolitical landscape has reinforced the need for decentralized energy solutions.

Axpo's strategy goes beyond the secure supply of energy; it focuses-both nationally and internationally-on expanding renewable energies and the further development of the customer and trading business.

With the progress of the Lålax wind farm, Axpo is reinforcing its commitment to a sustainable energy future. The project demonstrates what is possible when innovation, sustainability, and collaboration intersect. With more than 300 MW of new wind and solar capacity added internationally last year, Axpo continues to play a leading role in Europe’s energy transition.

Looking ahead, Ingves remains optimistic about Finland’s renewable energy future. “Success in this industry requires patience and long-term vision,” he reflects. “Even the best solutions aren’t always immediately viable. But by staying in close dialogue with stakeholders, continuously adapting to new regulations, and embracing technology, we can drive real impact. Finland has enormous potential, and Axpo is committed to shaping its clean energy future - one innovation at a time.”

Find out more about Axpo's approach to sustainability and the highlights from the last reporting year in the current Sustainability Report 2023/2024.