Sweden approves two offshore wind farms and rejects 11 projects

Sweden's government said it has approved two offshore wind power farms, while rejecting 11 other wind projects because of their impact on the country's defence capabilities.

The approved projects are Fyrskeppet Offshore in the Bothnian Sea between Sweden and Finland, and Vidar in the Skagerrak strait between Sweden and Denmark. Fyrskeppet Offshore is expected to produce between 8 and 11 terawatt hours of electricity a year, while Vidar targets 7.8 terawatt hours a year.

The companies behind the approved projects said state support would be needed before they could move forward. Fyrskeppet is backed by offshore wind company Skyborn Renewables, while Vidar is backed by state-owned utility Vattenfall.

Skyborn Renewables chief executive Niclas Broman said the government's approval does not automatically mean a project can be built. He said offshore wind projects would need a risk-sharing mechanism to become actual investments, citing two-sided Contracts for Difference and state-backed credit guarantees as examples.

Vattenfall said it welcomed the permit but told AFP that conditions for investment in offshore wind power in Sweden do not currently exist.

In September 2024, Vattenfall suspended construction of Kriegers flak, a Baltic Sea wind farm, citing a lack of profitability and high grid connection costs. The Swedish government also blocked 13 other Baltic Sea wind projects in November 2024, citing concerns that they could interfere with Swedish defence sensors.