Posts Tagged ‘Eolus’

Eolus, a Swedish renewable-energy firm, announced last week that it had given up all but one of its offshore wind projects in the country. The decision was not due to a lack of wind resources; starting in 2021, Eolus began expanding its capacity after evaluating that offshore wind would be necessary—and sufficient—for Stockholm to achieve its power-production targets. Eolus eventually built up a portfolio of projects with a planned capacity of 8.8MW. It blames a slow pace of electrification, as well as regulatory barriers and a lack of political support for making offshore wind unprofitable.

Eolus is not alone in its assessment. Earlier this month, RWS, a German firm, sold its Swedish offshore activities, stating that it was looking for a more dynamic market. On paper, at least, Sweden fits that bill: it is already one of Europe’s largest onshore producers, and, with coastlines along both the North and Baltic seas and an estimated potential in excess of 100MW, it could also be one of its largest offshore producers. That it is not on its way to being so stems, in part, from a 2024 decision by the government to cancel 13 wind farms planned for the Baltic, totalling 32MW and €47 billion in investments.

The cancellation was made due to concerns that Baltic windfarms would just be another target for Russian shenanigans, and that the decision was made on the advice of the military. The industry says that does not explain why Sweden fell behind in the first place. Sweden, it points out has 0.2GW of offshore windfarms, while neighbouring Denmark has up 2.6GW up and running. It also points out that the other countries of the Baltic have been able to balance security concerns with energy needs—and indeed incorporate them. Domestically, the 13 cancelled projects, all of them to have been built in the south, would have been a way for Sweden to balance its grid; currently, producers in the north, where there is a surplus, may only send a limited amount of power to the south, where consumption outstrips demand. By removing the targets, Sweden may be shooting itself in the foot.