The Swedish Wind Energy Association (Svensk Vindenergi) has given a negative assessment of the proposals outlined in the offshore wind report submitted to the Swedish government by a special committee. The association points to the lack of solutions for projects that are already in the permitting process and doubts that the proposed changes will contribute to the development of the sector. However, the report does not propose any measures that would actually improve market conditions, such as solutions for coexistence with the Swedish armed forces and other interests or to facilitate investment decisions in projects, for example through risk sharing and price hedging.
The report recommends the introduction of a system in which the state identifies suitable sites for wind farms. The system would take effect from 1 July 2026. The paper also proposes some regulatory simplifications that could streamline the assessment and grid connection processes, including for existing projects. However, it lacked detailed transitional provisions for investments already undergoing authorisation procedures.
Key issues identified by Svensk Vindenergi:
Lack of support for existing projects: Proposals do not take into account projects that are already in the permitting process, which may deter investors.
Unclear consequences for projects in the process:Projects under the current regulations will have to be completed before the new regime is implemented.
Long-term implementation schedule: The new system, as proposed, could start delivering energy in the second half of the 2030s at the earliest. The process involves the designation of suitable sites, the establishment of criteria for auctions, the holding of auctions, followed by permitting and construction.
Challenges for offshore wind development
According to Svensk Vindenergi, key to the development of the sector are:
Transparency and speed of processes: Simplification and acceleration of permitting procedures for projects already underway is needed.
Improvement of market conditions: There is a lack of mechanisms to encourage investment, such as risk sharing, price hedging or co-existence arrangements with defence interests and other sectors.
Political determination: Clear political objectives and priorities for offshore wind energy are needed for the new system to be effectively implemented.
Svensk Vindenergi suggests that the government commission additional work from Elmarknadsutredningen, a team that already analyses the energy market. This would allow support schemes and regulations to be more effectively adapted to the needs of the offshore wind sector, avoiding unnecessary delays.
Offshore wind energy is crucial to Sweden’s energy transition and electrification of the economy. The lack of adequate regulation and the lengthy timetable for the implementation of a new system risk losing the potential of existing projects and delaying the achievement of climate targets. The government needs to take decisive action to create a conducive environment for the development of the sector and ensure a smooth transition between the current and future regulatory regime.
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