Vattenfall pauses wind farm - "not profitable"

The state-owned energy company Vattenfall is pausing the development of the offshore wind farm Kriegers Flak. It is simply not profitable to build, says Helene Biström at Vattenfall.

» Updated:

» Published:

Vattenfall pauses wind farm - "not profitable"
Photo: Johan Nilsson/TT

Share this article

The most important explanation is that the current government has decided not to fund the power cables out at sea, "one of the fundamental prerequisites for investing in the project is a reasonable connection point to an expanded grid at sea", writes Vattenfall.

If the conditions change, i.e. if the state provides funding for connecting the offshore wind power, Vattenfall is ready to reconsider.

Nuclear power does not affect

Another important aspect when Vattenfall and other electricity producers make their investment decisions is that the increased demand, which everyone is talking about, actually materializes.

It is important for this project and all expansion in Sweden that we can keep pace with industry. Thus, that we have an increased supply in pace with industry, says Helene Biström, Vattenfall's manager for the wind power area.

Otherwise, there is a risk that too much electricity and too little demand will push down the electricity price.

But on that point, she thinks nothing has changed. That the government is on its way to give huge subsidies to the construction of new nuclear power does not affect the decision to pause Kriegers Flak, according to her. Nor does the fact that the electricity price is currently at unusually low levels.

"Some caution"

Vattenfall has several other major offshore wind power projects. They are later in development and continue as planned for now.

We continue to develop them, but naturally with some caution. We don't want to spend large sums of money before we know we can move forward with an investment, says Helene Biström.

Wind farm builder OX2 has a permitted offshore project underway, Galene off the coast of Halland. But there, the plans are on hold. The calculation has not included any state subsidy for cable laying at sea, the company tells TT.

Helene Biström points out that other countries often cover the connection costs.

A third of a reactor

The Swedish part of Kriegers Flak, where Germany and Denmark already have wind power production underway on their parts in the same area, is located about three miles south of Trelleborg and is, according to Vattenfall, "Sweden's most mature offshore wind power project".

The wind farm with 35-50 wind turbines received government approval in 2022 and could produce approximately 2.7 TWh of electricity per year, which can be compared to approximately eight TWh for a nuclear reactor.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Stockholm Stock Exchange Set for Positive Opening

Stockholm Stock Exchange Set for Positive Opening

Billerud to Cut Up to 650 Jobs Amid Cost-Saving Measures

Billerud to Cut Up to 650 Jobs Amid Cost-Saving Measures

Reduced Benefits Linked to Poorer School Results and Increased Crime

Reduced Benefits Linked to Poorer School Results and Increased Crime

Swedish Companies Face Record 12-Quarter Economic Slump

Swedish Companies Face Record 12-Quarter Economic Slump

Asian Stocks Rise Following US Fed Interest Rate Cut

Asian Stocks Rise Following US Fed Interest Rate Cut

Blackstone to Invest £90 Billion in UK Projects Over Next Decade

Blackstone to Invest £90 Billion in UK Projects Over Next Decade

Wall Street Mixed as Fed Cuts Interest Rate but Signals Caution

Wall Street Mixed as Fed Cuts Interest Rate but Signals Caution

Fed Lowers Interest Rate by 0.25 Points, Signals More Cuts This Year

Fed Lowers Interest Rate by 0.25 Points, Signals More Cuts This Year

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Avanza Introduces Digital Trading on London Stock Exchange

Avanza Introduces Digital Trading on London Stock Exchange

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Swedish Inflation Expectations Rise Slightly in Latest Survey

Swedish Inflation Expectations Rise Slightly in Latest Survey

Sweden's Unemployment Rate Stays High in August

Sweden's Unemployment Rate Stays High in August

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Verisure Returns to Stockholm Stock Exchange with Major Listing

Verisure Returns to Stockholm Stock Exchange with Major Listing

Oracle and Partners to Acquire TikTok's US Operations

Oracle and Partners to Acquire TikTok's US Operations

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut