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The Swedish Authorities has recently annulled 13 offshore wind projects, which together had an aggregated capacity of nearly 32 GW. This determination was reached on the basis that these projects could incur “unacceptable consequences for Sweden’s national security,” which has resulted in a total ban on offshore wind generation in a specified region of the Baltic Sea without adequate evaluation. This could endanger private investments totaling €47 billion.
Developers impacted by this annulment include notable companies such as OX2, Eolus, Ørsted, RWE, Freja Offshore, Deep Wind Offshore, and Statkraft. Most of these endeavors were primarily in the early development phase and had the potential to significantly boost Sweden’s existing electricity generation capacity.
Giles Dickson, CEO of WindEurope, criticized the Swedish Authorities, asserting, “Once again, Sweden is falling behind in offshore wind development. This outright prohibition on crucial areas of the Baltic Sea for offshore wind is unprecedented and irrational, particularly when neighboring countries are actively enhancing their offshore wind capacity.”
Despite having an extensive coastline along the Baltic Sea, Sweden’s offshore wind implementation has remained stagnant with only 0.2 GW of operational offshore wind capacity, a stark contrast to the 2.6 GW available in Denmark.
According to the Swedish Wind Energy Association, there are over 100 GW of offshore wind projects at various stages of development as of 2024. A majority of these projects are situated in southern Sweden, where there is high and rapidly increasing demand for renewable energy.
Tackling Military Concerns
The military has historically obstructed offshore wind project approvals in Sweden, presenting a long-standing challenge that the government has not effectively managed.
In contrast, the other seven countries bordering the Baltic Sea have adopted collaborative methods, promoting dialogue between the offshore wind sector and military entities to discover mutually advantageous solutions. For instance, Poland’s military views offshore wind development as an opportunity to enhance its surveillance capabilities by integrating radar and sonar systems within wind farms to gather essential operational data.
WindEurope is actively working with NATO and the European Defence Agency (EDA) to address the concerns raised by the Swedish authorities and military. Notably, the ‘Symbiosis’ project aims to reconcile the coexistence of offshore renewable energy initiatives with defense operations in European maritime domains.
“European governments must stand firm against Russian intimidation and interference in energy policies. Offshore wind strengthens energy security while diminishing reliance on Russian energy imports. The successful shift to affordable, local renewables is vital. Offshore wind can effectively coexist with military operations,” asserts Dickson.
Issues with the Open-Door System
The numerous cancellations arise, in part, from Sweden’s “open-door” system for offshore wind project development. Sweden and Italy are the only EU countries employing such systems, which tend to foster conflicts regarding maritime space utilization. Within an open-door framework, developers can initiate project development without prior agreement on potential conflicts with military, shipping, and environmental interests, often leading to overlapping applications from different developers for the same sites.
“Sweden’s cumbersome approach to offshore wind development has been exacerbated by a lack of government financial support. The recent cancellations have drastically undermined investor confidence. Prospective investors are likely to reconsider their involvement in the Swedish offshore wind sector, especially when neighboring countries provide more assured frameworks for development,” Dickson notes.
Background on Development Strategies
In the “open-door” model, developers independently initiate their offshore wind farm applications, allowing for flexibility in project location and capacity. This process can enable developers to position their initiatives near high-demand areas, facilitating corporate power purchase agreements (PPAs) with industrial clients, potentially leading to more cost-competitive projects.
Conversely, most EU nations adopt a “centralized approach” where governments or relevant agencies select and pre-develop specific offshore wind sites based on optimal wind resources. During this evaluation, potential conflicts with existing maritime uses are assessed. The government generally oversees grid connection planning through national transmission system operators, subsequently tendering selected sites to developers for further project development steps.
