Swedish wind power set new production records in 2024, marking the highest annual output ever recorded. However, despite this milestone, the expansion of wind energy has slowed due to challenging market conditions, according to the latest statistics from Svensk Vindenergi. After two consecutive quarters without new investment decisions, the trend has finally shifted.

While wind power expansion continues, it is proceeding at a slower pace than in previous years. Many industry players report increasing difficulty in making investment decisions for new projects. Svensk Vindenergi’s data for the fourth quarter of 2024 highlights the impact of a weakened investment climate over the past two years.

“The expansion rate has slowed down due to a deteriorating investment climate in 2022 and 2024. We see that making final investment decisions today, which is the last step before construction begins, has become more challenging. Tougher market conditions make it harder to balance investment calculations,” says Anton Johansson, Head of Analysis and Market at Svensk Vindenergi.

In 2024, orders were placed for wind turbines with a total capacity of 446 MW, a stark contrast to the 1,244 MW ordered in 2023. Over the past year, 1,015 MW of new wind power capacity was commissioned. Looking ahead, an additional 2 gigawatts (GW) of new wind power is expected to be installed in Sweden by the end of 2027. For comparison, Sweden expanded its wind power capacity by an average of 2 GW per year from 2020 to 2022.

Beyond ongoing construction projects, approximately 500 MW of permitted wind power projects are awaiting final investment decisions. These projects could soon be operational, but investment hurdles persist due to political uncertainty, rising costs, delays in grid connection approvals, and postponed electrification projects in the industrial sector.

A Historic Year for Wind Power Generation

Despite slower expansion, 2024 was a record-breaking year for wind energy production in Sweden:

  • Annual wind power generation reached an all-time high of 40.8 terawatt-hours (TWh).
  • In December 2024, wind energy surpassed both hydro and nuclear power for the first time.
  • During the fourth quarter of 2024, wind power outproduced nuclear energy for an entire quarter—another unprecedented milestone.

Sweden’s wind power sector has demonstrated remarkable resilience, achieving historic production levels despite economic and political headwinds. As investment challenges persist, industry stakeholders remain hopeful that policy support and improved market conditions will enable continued growth in the coming years.

Source: Svensk Vindenergi