Sweden: financial support to accelerate onshore wind projects

The Swedish government is providing over SEK 1 billion to encourage municipalities to accept onshore wind power projects, with the aim of removing local obstacles to the development of this energy source.

Share:

Éolien terrestre Vattenfall en Suède

The Swedish government is implementing a new strategy to boost the siting of onshore wind farms by allocating more than one billion kronor (around 97 million euros) to municipalities that approve such projects.
The initiative, announced by Romina Pourmokhtari, Minister for Climate and the Environment, is designed to offset the growing number of municipal refusals in recent years.
In this way, the government is seeking to overcome the local resistance that is holding back the development of wind power in the country.
Pourmokhtari points out that the acceptance of projects by local authorities is a major challenge, as local reluctance remains a major obstacle.
In response, the government plans to redistribute part of the revenues generated by these farms to local residents, hoping to alleviate concerns and boost acceptance.
This approach aims to involve communities more closely in the economic benefits of the energy transition.

No measures for offshore wind power and ongoing political debate

The announcement focuses on onshore wind power, but does not yet include specific measures for offshore wind power.
State-owned Vattenfall, a key player in the Swedish energy sector, recently suspended a major offshore wind project, citing unfavorable investment conditions.
This situation highlights the sector’s persistent challenges, including regulation and municipal vetoes, seen by some as significant barriers.
Fredrik Olovsson, of the Social Democratic Party, criticizes the lack of reform regarding municipal veto rights, which he sees as a significant brake on energy development.
This remains a subject of debate in political circles, where adjustments could be considered to facilitate the expansion of renewable infrastructures.

Mixed reactions from the wind industry and economic issues

The measure has received a measured welcome from industry professionals.
Svensk Vindenergi, representing the wind power industry, supports the idea of boosting electricity production to meet the growing demand from Swedish industry.
However, the organization insists on the need for a balanced approach that takes into account both local constraints and national energy objectives.
This policy reflects an attempt to reconcile economic development with the management of local impacts, by adapting benefit-sharing models.
The industry’s response remains cautious, indicating that adjustments will be necessary to address the various issues at stake, particularly those relating to offshore wind power and local governance models.

Strategy and outlook for Sweden’s energy future

The Swedish government continues to examine ways of maximizing the local economic benefits of installing wind farms while supporting national electrification targets.
This strategy, while targeting local acceptance of projects, highlights the challenges of reconciling energy development and local acceptability.
Future direction may depend on the ability of decision-makers to adjust policies in line with local realities and global economic imperatives.

Energy company TGS has won a major high-resolution geophysical imaging contract for offshore wind site characterization in Norway, strengthening its position in this rapidly growing market.
Iberdrola Australia secures crucial approval from Australian authorities to begin metocean studies for its 3GW Aurora Green offshore project off the coast of Victoria, marking a decisive stage in its development.
ENGIE begins full operation of the Red Sea Wind Energy wind farm in Egypt, increasing its capacity to 650 MW, four months ahead of schedule, now powering over one million homes in the region.
Tokyo Gas, through TOWII Renewables, a joint venture with EWII, purchases two onshore wind projects developed by Finnish company Puhuri, totalling 74.4 MW, marking its expansion beyond the Danish market.
The European Investment Bank grants EWE AG historic €450mn financing for the installation of 2,600 km of underground power lines and the upgrade of over 1,100 substations in Lower Saxony.
Japan’s Ministry of Industry and Siemens Gamesa Renewable Energy launch a strategic partnership to develop local offshore wind supply chains and strengthen the country's industrial competitiveness in this energy sector.
Energiekontor AG confirms financial close for the Nartum wind farm, adding 23 megawatts to its owned portfolio and starting the construction phase in the Rotenburg district, Lower Saxony.
Airloom Energy begins construction of a pilot site in Wyoming to test an innovative turbine aimed at enhancing American energy security in the face of anticipated growth in electricity demand.
ACCIONA Energía transfers the San Juan de Marcona wind farm to Luz del Sur S.A.A., a major player in Peru's energy sector, for up to USD 253 million, pending necessary regulatory approvals.
German operator Encavis AG strengthens its portfolio by acquiring two wind farms in Lower Saxony and Saxony, totalling 59 MW, in a transaction with Energiequelle GmbH, thereby expanding its renewable energy assets.
Ocergy officially launches an industrial project aiming to install by 2028 a new-generation floating wind turbine of over 15 MW, in partnership with EnBW, Kyuden Mirai, and TEPCO Renewable Power.
France officially commissions its first floating wind farm, consisting of three turbines with a combined capacity of 25 megawatts, introducing strategic technology in the Mediterranean, vital for national energy goals.
Inaugurated on 20 June, the five-turbine plant of wpd onshore France feeds 18 MW into the grid and unlocks new tax revenue for four Côtes-d’Armor municipalities.
Statkraft refocuses investments on flexible Nordic hydropower and reduces commitments in offshore wind and hydrogen to lower operating costs, amid an uncertain economic environment and pressured profitability.
Suzlon Group receives third consecutive order from AMPIN Energy Transition to supply 170.1 MW of wind turbines for a project in India's Andhra Pradesh state, strengthening their strategic industrial partnership.
The Muir Mhòr floating wind project secures Aberdeenshire's onshore consent, paving the way for the potential production of one gigawatt of electricity, enough to power up to 1.2 million British homes by the early 2030s.
Iberdrola España and Renfe conclude a virtual power purchase agreement for 370 GWh per year for ten years, strengthening the use of renewable energy in Spanish railway transport.
TotalEnergies has been awarded a concession in the North Sea enabling the development of a 1GW offshore wind project, reinforcing its strategic presence in Germany.
With an annual increase of 14%, global offshore wind capacity now reaches 85.2 gigawatts, driven mainly by China, the United Kingdom, and Germany, while another 27.3 gigawatts are currently under construction.
Seabed exploration begins in Jammerland Bay to validate the placement of sixteen turbines and the cable corridor, the first tangible step before construction of the project led by TotalEnergies and European Energy.