Land Use Act reform: New rules for wind and solar power development
On 16 April 2026, the Finnish Government submitted to Parliament a comprehensive legislative proposal (HE 70/2026 vp) for a new Land Use Act (in Finnish: alueidenkäyttölaki), together with amendments to the Building Act (751/2023) (in Finnish: rakentamislaki) and 36 other statutes. While retaining the three-tier planning system, the proposal amends the content requirements and legal effects of plans at all levels and introduces more detailed rules for renewable energy. This article discusses the key changes proposed and their significance for wind and solar power development, with a particular focus on planning and the siting of power plants.
The reform represents the final stage of the overhaul of the Land Use and Building Act that began in 2018 and would rename the Land Use Act as the Act on the Implementation of Plans (in Finnish: laki kaavojen toteuttamisesta). The acts and amendments are intended to enter into force on 1 January 2027, but the existing provisions would continue to apply to plans placed on public display as a proposal before that date.
New minimum distance requirement between wind turbines and residential buildings
Where a wind power master plan (in Finnish: tuulivoimayleiskaava) is not situated in an area designated for wind turbines in a regional plan, a minimum distance of 1,250 metres would apply between a wind turbine and existing or planned residential buildings. The requirement would not apply where the area is already covered by a wind power master plan or local detailed plan. The minimum distance requirement may, however, be waived if at least four-fifths of the landowners and holders of land lease rights whose residential buildings or designated residential building sites are located within 1,250 metres of the planned turbine give their written consent. Each residential property would count as one consent, requiring the joint agreement of all co-owners and lease right holders. The consent would have to be given in writing to the municipality after the plan has been placed on public display as a proposal. The consent would be binding on subsequent owners of the property.
From a developer's perspective, the new distance requirement is likely to be of considerable practical importance. Where the 1,250 metre zone includes residential properties, the progress of projects may depend on obtaining the required level of consent from affected landowners and holders of land lease rights. This may prove particularly relevant in areas where residential properties are dispersed within the zone. In practice, this underscores the importance of engaging with affected landowners at an early stage and ensuring that the process is carefully documented. It should also be noted that the distance requirement would not apply where the site is already designated for wind turbines in a regional plan, which may increase the relative attractiveness of areas already identified for wind power development.
It should, however, be noted that the consent procedure applies solely to the minimum distance requirement and does not dispense with the other statutory content requirements applicable to a wind power master plan, including those relating to landscape impacts, noise, and shadow flicker, all of which must be satisfied in the normal manner.
New planning obligation for large solar power installations
Under the proposed amendments to the Building Act, the construction of a solar power plant covering an area of at least 50 hectares would in all cases require either a solar power master plan (in Finnish: aurinkovoimayleiskaava) or a local detailed plan. The introduction of a dedicated solar power master plan category is a notable development, as there has until now been no specific planning instrument tailored to solar power installations.
The proposed 50 hectare threshold is, however, likely to be significant in practice. Many planned solar power projects in Finland fall within the range of approximately 70 to 150 hectares, meaning that the planning obligation would apply to a substantial share of utility-scale solar development. This may be particularly relevant where projects are planned for former peat production areas or other low-conflict sites, which are often regarded as suitable locations for solar power from a land use perspective.
The proposal also introduces a requirement that no significant part of a solar power plant’s area may be located on forest land. While the concept of forest land is technically defined in the proposal, the expression “significant part" is not, which creates ambiguity as to the permissible extent of forest land within a project area. For project developers, this gives rise to legal uncertainty at the planning stage, leaving the issue ultimately to be determined through municipal discretion or judicial interpretation.
Of particular practical importance is the possibility of using a solar power master plan directly as the basis for a building permit, without requiring a separate local detailed plan. For developers, this may reduce both the time and cost associated with the permitting process. The reform also introduces the possibility of preparing a master plan and a local detailed plan simultaneously and approving them by a single decision, which may be useful in projects where a local detailed plan is considered necessary. It should be noted that wind and solar power installations are expressly excluded from the scope of the clean transition siting permit procedure under the Building Act, meaning that a planning-based route remains the applicable pathway for solar power development.
At the same time, the planning obligation may lengthen project timelines, increase development costs and add uncertainty to the investment environment. For project developers, this may delay investment decisions and, in some cases, affect the overall feasibility of a project. Developers should also note that the direct permit basis under the master plan applies only subject to certain conditions, the precise scope of which will be of considerable practical importance once the legislation is finalised.
Other key changes: Narrower appeal rights, climate obligations and strengthened landowner rights
The legislative package also includes a number of other notable changes. First, the right of appeal against a local detailed plan prepared in accordance with a valid master plan would be limited to parties directly affected, instead of all members of the municipality. Under the current legislation, appeal against a plan approval decision is made by way of a municipal complaint, meaning that the right of appeal is in principle available to all members of the municipality. The proposed reform would restrict this right to directly affected parties where the local detailed plan is prepared within the area of a valid master plan without deviating from its guidance, while leaving the appeal rights of authorities unchanged.
Secondly, climate change mitigation and adaptation would be incorporated as mandatory substantive content requirements at each planning level. At the national level, climate change mitigation and adaptation would be expressly added to the matters to be addressed in national land use goals. At the master plan level, new content requirements would be introduced relating to preparedness for extreme weather events, flood risks and stormwater management systems. At the local detailed plan level, plans would similarly be required to address preparedness for extreme weather events, flooding and stormwater. These changes are likely to increase the practical significance of climate considerations in both plan preparation and decision-making.
The proposal would also strengthen the role of landowners in the planning process. Landowners would gain the right to submit a reasoned initiative to the municipality requesting the preparation or amendment of a local detailed plan or a directly binding master plan for land they own. The municipality would be required to process such an initiative and reach a decision in a multi-member body without undue delay, and at the latest within four months of the submission of the initiative. Landowners may also assume a more active role through the partnership planning model, under which the municipality may, at the landowner's request, assign the preparation of a plan to the landowner.
In addition, the maximum duration of building prohibitions imposed for the preparation or amendment of a master plan would be reduced from 15 years to eight years. Under the current legislation, this 15 year maximum consists of three separate five year periods: a basic period of up to five years, which the municipality may extend by up to a further five years and, for special reasons, by yet another five years. The maximum duration of building prohibitions imposed for the preparation of a local detailed plan would be reduced to six years, and building prohibitions included in a local detailed plan itself may not exceed nine years. A new compensation right would also be introduced for landowners who suffer economic loss as a result of planning provisions restricting the management of forests, provided that the loss exceeds EUR 3,000 or four per cent of the market value of standing timber on the restricted forest property.
Additional information
Our Energy practice will continue to monitor the progress of the legislative project and provide updates as developments unfold. For further information, please contact the lawyers listed on this page.
