Business Finland Smart Energy Grant
Funds Finnish companies developing smart energy solutions with global scaling potential.
Program Vision
Business Finland’s Smart Energy Grant accelerates Finnish companies developing cutting-edge solutions for energy efficiency, flexible grids, storage, and renewable integration. The program aims to position Finland as a leader in sustainable energy systems by empowering companies to pilot, scale, and export technologies that support the global transition to carbon neutrality. Projects may involve digital platforms, demand response tools, energy management systems, microgrids, power electronics, energy communities, or hybrid renewable installations. Applicants should demonstrate how their innovation contributes to Finland’s climate targets, strengthens local ecosystems, and captures international market share.
Funding Overview
The grant offers up to EUR €2,000,000 per project, covering a portion of eligible research, development, and commercialization costs. Business Finland typically requires co-financing from the applicant or partners, with funding intensity varying based on company size, project type, and collaboration level. Eligible expenses include personnel costs, subcontracted R&D, equipment, software development, piloting activities, and internationalization efforts. Disbursements occur in tranches aligned with milestone delivery, and recipients must maintain transparent financial records subject to audits. Combining the grant with Business Finland loans, EU funding, or private investment is encouraged to accelerate growth.
Eligibility Requirements
Applicants must be Finnish-registered companies with a credible plan for international growth. Startups, SMEs, and large enterprises can apply, provided the project focuses on smart energy innovations with significant export potential. Collaborations with research organizations, municipalities, or utility companies are highly valued and can unlock higher funding intensities. Applicants must demonstrate financial stability, responsible governance, and compliance with Finnish regulations. The project should align with Business Finland’s impact criteria—competitiveness, sustainability, and internationalization—while offering measurable benefits for customers and society.
Application Process and Timeline
The 2024 call encourages submissions by 2025-10-31 to align with budget cycles. The process begins with a preliminary discussion with Business Finland advisors, who assess project fit and provide feedback. Applicants then submit a detailed application via the online portal, including business plans, technical descriptions, budgets, and impact assessments. Evaluation typically takes six to eight weeks, involving sector experts and impact specialists. Successful applicants negotiate a funding agreement specifying milestones, reporting obligations, and payment schedules. Engaging with advisors early enhances proposal quality and aligns expectations regarding deliverables and metrics.
Strategic Narrative and Market Opportunity
A strong application articulates a compelling market opportunity supported by data-driven insights. Describe global energy trends, customer pain points, and regulatory drivers that create demand for your solution. Highlight competitive advantages such as proprietary algorithms, patents, system integration expertise, or proven pilot results. Provide market size estimates, growth projections, and go-to-market strategies targeting Nordic neighbours, EU markets, or emerging economies. Emphasize how the project reinforces Finland’s role in international energy value chains, attracts foreign investment, and contributes to export revenue.
Technical Plan and Innovation Roadmap
Detail the technical architecture, innovation components, and development stages. Break down work packages covering research, prototyping, field testing, digital platform development, and commercialization readiness. Discuss the technology readiness level at project start and target level upon completion. Address interoperability with existing grid systems, cybersecurity safeguards, data governance, and compliance with European energy regulations. If the project involves AI or advanced analytics, describe training data, model validation, and ethical considerations. Incorporate sustainability metrics such as emissions reduction, energy savings, and lifecycle impacts.
Collaboration and Ecosystem Integration
Business Finland encourages projects that strengthen national ecosystems. Highlight partnerships with energy companies, municipalities, research institutes, and technology providers. Document roles, commitments, and resource contributions for each partner. Collaborations with the Smart Energy Finland program, EU missions, or Nordic innovation platforms can showcase alignment with broader initiatives. Consider forming advisory boards with industry experts to guide commercialization and regulatory strategy. Demonstrating stakeholder engagement and community benefits reinforces the project’s systemic value.
Budget Planning and Resource Allocation
Develop a detailed budget linking costs to project activities. The following table offers a sample structure:
| Cost Category | Amount (EUR) | Funding Source | Notes |
|---|---|---|---|
| R&D Personnel | 1,000,000 | Business Finland 600,000 / Company 400,000 | Engineers, data scientists, product managers |
| Equipment & Software | 400,000 | Business Finland 200,000 / Company 200,000 | Sensors, controllers, cloud infrastructure |
| Pilot Deployment | 350,000 | Business Finland 210,000 / Municipal partner 140,000 | Installation in smart district heating network |
| Subcontracted Expertise | 200,000 | Business Finland 120,000 / Company 80,000 | Cybersecurity audits, standards compliance |
| Internationalization | 150,000 | Business Finland 90,000 / Company 60,000 | Market research, trade missions, localization |
| Monitoring & ESG Reporting | 80,000 | Business Finland 48,000 / Company 32,000 | Impact assessment tools and external verification |
| Contingency | 120,000 | Company 120,000 | Risk buffer for supply chain fluctuations |
| Total | 2,300,000 |
Tailor the budget to your project’s scale while demonstrating cost discipline and adequate co-funding.
Impact Measurement and ESG Integration
Business Finland prioritizes projects delivering environmental, social, and economic impact. Define key performance indicators such as megawatt-hours optimized, emissions avoided, cost savings for customers, and jobs created. Outline data collection methods, baseline metrics, and reporting frequency. Incorporate ESG principles by discussing energy efficiency, circular economy practices, stakeholder engagement, and diversity commitments. If the project supports vulnerable communities or energy poverty alleviation, quantify benefits and describe partnership structures enabling inclusive access.
Risk Management and Mitigation
Develop a comprehensive risk register covering technical, market, financial, regulatory, and operational risks. Examples include integration challenges with legacy infrastructure, evolving EU energy policies, supply chain disruptions, or cybersecurity incidents. For each risk, define mitigation strategies—pilot partnerships, modular system design, insurance coverage, or compliance frameworks. Include sensitivity analyses within financial models to illustrate resilience under different pricing, adoption, or regulatory scenarios. Establish governance mechanisms such as steering committees and independent audits to monitor risk exposure throughout the project.
Communication and Dissemination
Craft a communication plan that showcases project milestones, educates stakeholders, and attracts partners. Activities may include press releases, webinars, conference presentations, and demonstration events in smart city pilots. Collaborate with Business Finland’s communications team to highlight success stories domestically and internationally. Prepare case studies, white papers, and open data assets that contribute to industry knowledge and support Finland’s reputation as an energy innovation hub.
Application Checklist
To streamline preparation, maintain a checklist covering:
- Executive summary and pitch deck articulating the problem, solution, market opportunity, and team credentials.
- Detailed project plan with work packages, timelines, milestones, and resource allocation.
- Financial projections, funding plan, and evidence of co-financing or investor commitments.
- Technical documentation including system architecture, interoperability standards, and cybersecurity strategy.
- Impact assessment framework with ESG indicators and measurement methodologies.
- Partnership agreements, letters of intent, or memoranda of understanding from collaborators.
- Risk management plan, governance structure, and quality assurance protocols.
By coupling ambitious innovation with rigorous execution, Finnish companies can leverage Business Finland’s Smart Energy Grant to unlock new markets, accelerate the clean energy transition, and deliver sustainable value for communities worldwide.
Ideal Project Characteristics
Business Finland favors projects that combine cutting-edge R&D with scalable commercialization pathways. Winning proposals typically feature interoperable software-hardware stacks, real-time data analytics, or AI-enabled optimization that deliver measurable emissions reductions. Partnerships with Finnish municipalities, distribution system operators, housing cooperatives, or industrial clusters strengthen the case because they demonstrate living-lab environments for pilots. Projects that engage citizen energy communities, electric mobility ecosystems, or hydrogen value chains also align with Finland’s climate roadmap. Ensure that your consortium includes SMEs, research institutions, and, where relevant, export customers ready to adopt the solution post-pilot.
Recommended Timeline and Milestone Planning
Although applications are accepted continuously, plan a six-month runway to craft a competitive submission. The first two months should focus on strategy alignment: validate market needs, scope technical architecture, and secure letters of commitment from partners. Months three and four can be devoted to drafting the project plan, environmental impact assessment, and commercialization roadmap. Use the final months to refine financial projections, secure board approvals, and review compliance with EU State Aid rules. Once submitted, anticipate three to four months for evaluation and contract negotiation, so align your pilot start date accordingly.
Data Room and Documentation Checklist
Organize a comprehensive data room to support Business Finland’s diligence:
- Executive summary linking the project to Finland’s National Energy and Climate Strategy and EU Green Deal objectives.
- Detailed project plan with work packages, resource allocation, subcontracting arrangements, and risk mitigation measures.
- Technology description including system architecture, cybersecurity safeguards, and interoperability standards (e.g., IEC 61850, OpenADR).
- Environmental impact analysis quantifying emissions reductions, renewable energy penetration, and lifecycle assessments.
- Commercialization strategy outlining export markets, pricing models, channel partners, and IP protection.
- Financial forecasts covering multi-year revenue streams, cost structures, sensitivity scenarios, and funding mix.
- Governance documents such as consortium agreements, NDAs, and letters of commitment from participating companies and research organizations.
Evaluation Criteria Insights
Reviewers apply Business Finland’s impact, renewal, and export potential framework. Demonstrate global scalability by referencing comparable markets in the Nordics, EU, Asia, or North America. Highlight how the solution differentiates from incumbents, including proprietary algorithms, patented hardware, or unique data integrations. Provide proof of demand through customer pilots, memoranda of understanding, or export pipeline metrics. Renewal refers to the project’s ability to refresh Finland’s industrial base—illustrate knowledge spillovers, new job creation, and alignment with skills development initiatives like the Talent Boost program. Clearly articulate societal impact, such as enabling energy communities, reducing grid congestion, or supporting just transition for rural regions.
Risk Management and Compliance Strategy
Energy innovation carries regulatory and operational risks. Present a risk register addressing grid interconnection approvals, data privacy compliance under GDPR, supply chain dependencies, and technology performance. For pilots involving critical infrastructure, detail cybersecurity frameworks, penetration testing schedules, and incident response plans. Include contingency budgets and fallback scenarios in case of component shortages or policy changes. Projects must comply with EU taxonomy criteria for sustainable activities—explain how your project avoids lock-in to fossil fuels and adheres to Do No Significant Harm principles.
Sample Work Package Structure
| Work Package | Duration | Lead Partner | Key Deliverables |
|---|---|---|---|
| WP1: Concept Finalization | Months 1-3 | Lead company | System requirements, stakeholder workshops, baseline assessment |
| WP2: Technology Development | Months 2-12 | Research institute | Prototype builds, lab validation, cybersecurity audit |
| WP3: Pilot Implementation | Months 7-18 | Utility partner | Site preparation, integration with grid assets, measurement & verification plan |
| WP4: Commercialization & Export | Months 10-24 | Lead company | Market entry strategy, partner contracts, investor briefings |
| WP5: Impact Evaluation & Dissemination | Months 6-24 | University partner | ESG reporting, whitepapers, participation in international fairs |
Frequently Asked Questions
Can startups apply independently? Yes, but demonstrating strong partnerships with utilities, technology providers, or municipalities increases credibility and speeds implementation.
Does Business Finland require matching funds? Typically, companies must co-finance part of the project. The grant percentage depends on company size and project type, so prepare internal financing or investor commitments.
Are international pilots allowed? Primary activities should occur in Finland, yet demonstrating export readiness with foreign customers or testbeds is encouraged when it accelerates market entry.
What reporting obligations exist? Grantees submit periodic progress reports, cost statements, and impact metrics via Business Finland’s online system. External audits may be required for larger projects.
How can we strengthen ESG positioning? Incorporate circular economy principles, green procurement, gender diversity targets, and community engagement plans. Align impact metrics with UN Sustainable Development Goals, especially SDG 7, 11, and 13.
By aligning technical innovation with Finland’s ambitious climate objectives, showcasing robust partnerships, and articulating a compelling export strategy, companies can leverage the Smart Energy Grant to build globally competitive clean energy solutions.
Insider Tips to Win Business Finland Smart Energy Grant
- Demonstrate export potential. Show how your smart energy solution scales to international markets, a key Business Finland metric.
- Back claims with pilots. Provide data from testbeds or living labs that prove technology readiness for deployment.
- Highlight sustainability KPIs. Quantify emissions reductions and energy savings to align with Finland’s climate targets.