The Swedish Wind Energy Association (SWEA) informs that so far in 2021, 15 billion Swedish kronor (1,47 billion euro) has already been invested in wind energy. Sweden attracted the most investments among the Scandinavian and Baltic countries.
Daniel Badman, CEO of SWEA said that the development of wind power proves that Sweden is a very attractive country for green and industrial investments. Currently, the installed capacity in wind energy in Sweden is approximately 10 GW, which corresponds to 4359 installed turbines generating annually 26.3 TWh.
“Cheap renewable electricity is one of the keys to the climate-driven neo-industrialization we just started,” added Badman.
SWEA forecasts that the development of wind energy will continue and will reach the highest level in 2021 – it will increase by 2.7 GW. Until 2024, the cumulative installed capacity will be over 17 GW and the normal annual production will be almost 50 TWh, but the number of turbines installed will remain below 6,000 – as each such unit has an increasing capacity.
Wind energy is becoming more and more popular in the south of the country
In the second quarter of 2021, projects with a total capacity of 234 MW were submitted for construction, which means an increase compared to 102 MW in the same period in 2020. All projects will be built in the south of Sweden. In the previous quarters, decisions mostly concerned the northern and central part of the country.
Since the beginning of 2021, investors have made decisions on wind farm projects with a total value of SEK 15 billion (approximately EUR 1.47 billion).
The development of wind energy in the south of Sweden is important in terms of, inter alia, local energy production. Aegir Insights analysts indicate that much more energy is used in the southern part of Sweden than is produced in the region. The southern region accounts for 18 percent of the country’s electricity consumption, while only 4 percent is produced in the area. This creates a deficit of energy that is imported from northern regions or from abroad. Aegir Insights states that if the region would wish to fully meet its energy needs in the future, it would have to consider developing offshore wind energy.
Investments in the second quarter take place in southern Sweden
All new wind energy projects notified in the second quarter of 2021 will be built in southern Sweden. Previously, most investment decisions concerned the northern and central parts of the country. So far this year, investment decisions have been made with a value of almost 15 billion Swedish kroner (approximately EUR 1.47 billion).
SWEA forecasts that Sweden will account for 53 percent of the wind market in the Nordic and Baltic countries in the coming years. Sweden’s attractiveness consists of a combination of good wind conditions and companies that can successfully develop good projects.
“Sweden is responsible for just over 50 percent of the expansion of wind energy in the years 2020-2022 in the Scandinavian countries. The fact that expansion also takes place in southern Sweden is important for competitiveness and the power system, ”says Daniel Kulin, SWEA Strategic Analyst.
The lack of permits is worrying
The industry organization calculates that wind energy may be the second largest energy source in Sweden as early as 2024, provided that nuclear energy production remains at the 2020 level. The fast pace of investments combined with the low supply in the area of new permits means that there is a shortage of projects ready for construction.
Electricity constraints may also prevent completed projects from developing. In addition, there are also objections of the Swedish Armed Forces regarding the development of wind energy in areas with good wind conditions.