Today, the Government Inquiry into offshore wind power has submitted its final report, Wind Power at Sea – A Transition to an Auction System. Eolus welcomes the investigation’s proposal to continue processing permit applications under the current system until an auction system potentially comes into effect.
“Hundreds of millions have been invested in studies and applications for offshore wind power projects in recent years. It is important that these investments are not lost, and we expect the government to now accelerate the processing of the projects currently on their desk,” says Emil Nordström, Head of Project Development at Eolus.
The investigation also presents proposals on principles for how permits can be assessed under current legislation, including considerations of feasibility and costs.
“Costs – and thus electricity prices – has received far too little attention in the debate. It’s easy to talk about building offshore wind power far out at sea without discussing costs and feasibility. We therefore view positively the investigation’s openness to factoring in such aspects, even under current legislation.
“To illustrate: we have the Najaderna project off Gävle/Tierp, which is relatively close to shore and involves comparatively few conflicting interests. This increases the likelihood of realizing the project, as connection cable costs are kept lower, the water is shallower, and coexistence is possible.
“Another example is Västvind, where Eolus has a close collaboration with Göteborg Energi to connect the wind farm directly to Gothenburg’s local grid, right onto Hisingen, where electricity-intensive industries like Volvo Cars operate. Since grid connection is often a challenge, this provides both time and cost advantages.
“By incorporating these aspects into the permitting process, the likelihood of projects actually being realized increases.”
Based on a study by Sweco, the investigation concludes that there are currently no market conditions conducive to building offshore wind power in Sweden.
“We also see that, given current cost levels and electricity price forecasts, there may be challenges in achieving profitability, but market conditions change. Therefore, we urge the government not to wait but to speed up and grant permits wherever possible, so investors can be ready to act when conditions align. Furthermore, the government should embrace the investigation’s proposal for state support for projects approved during the transition period. This is a crucial component and would enable offshore wind power to be realized even before an auction system is in place,” Emil Nordström concludes.
For more information, please contact:
Emil Nordström, Head of Development at Eolus, +46 70 692 42 28, emil.nordstrom@eolus.com
Karin Wittsell Heydl, Chief Communications and Sustainability Officer at Eolus, +46 76 116 71 99, karin.heydl@eolus.com
