Kriegers Flak wind farm project halted due to Tidöparties’ withdrawal of state subsidies in Sweden

The decision to halt the major wind farm project at Kriegers Flak has been attributed to the Tidöparties’ withdrawal of state subsidies for offshore cable connections, according to Vattenfall. The profitability of the project has been deemed too low without government support. Despite Vattenfall’s announcement on Monday to either terminate or pause the project, Energy Minister Ebba Busch remains resolute. She stated, “We cannot invest billions in an energy type, namely offshore wind power, just to cover connection fees. We don’t do that for onshore wind either.” Busch emphasized the government’s priority to “rebuild the Swedish electricity system robustly,” advocating for technology-neutral choices.

Furthermore, Busch noted that other offshore wind projects appear to be managing their budgets without the connection subsidies. She mentioned that Vattenfall has another financially viable project. Opposition parties have criticized the lack of subsidies, with Amanda Lind from the Green Party arguing that such support is essential for the development of Swedish electricity production. She asserted, “The government prefers to push its political agenda rather than prioritize Sweden’s best interests,” adding that Swedes need cheaper electricity now, not in twenty years.

Social Democratic spokesperson Fredrik Olovsson warned that the stoppage of the Kriegers Flak project could negatively impact electricity prices in southern Sweden, which already suffers from high costs and shortages. The park, located approximately 30 kilometers south of Trelleborg, has been described by Vattenfall as “Sweden’s most mature offshore wind power project,” with the potential to generate about 2.7 TWh of electricity annually.