The market in Sweden is expanding rapidly and there are significant opportunities for British companies to gain market shares in a number of areas.
Wind Power ? Sweden
Helena Lindquist, Senior Trade & Investment Adviser, UK Trade & Investment Sweden
Last revised: February 2010
Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK
Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills and the Foreign &
Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or
responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.
Published Feb 2010 by UK Trade & Investment.
Crown Copyright ©
Wind power - Sweden
Table of Contents
CHARACTERISTICS OF MARKET 5
KEY METHODS OF DOING BUSINESS 7
MORE DETAILED SECTOR REPORTS 7
CONTACT LISTS 8
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Wind power - Sweden
Swedish wind power has been growing rapidly and since the middle of the 1980s the number of
plants has doubled every fourth year. At the end of 2009 there were about 1400 wind turbines
yielding around 3 TWh of electricity. Wind generating capacity has grown at a rate of around
10% annually in recent years, but increased significantly during 2008-2009. 2008 represented
an increase of almost 40% from the previous year. The market is expanding rapidly and there
are significant opportunities for British companies to gain market shares in a number of areas.
The table and graph below illustrate the rapid increase of wind power deployment in Sweden
during the last few years. This development is expected to continue in the coming decade.
The Swedish government has proposed a planning target of 30 TWh of wind power until 2020.
Until now wind power has been built primarily on land or near the coasts. Plans are now being
made to enable more offshore wind power and wind farms in the mountains. According to this
target of 30 TWh, 20 TWh should be generated onshore while 10 TWh should be generated
Depending on turbine size, this planning target would mean a need to build 4000-6000 new
wind power plants by 2020. However, the potential for wind power in Sweden is in excess of
the proposed planning target. Some analysts think that this projection is overly optimistic and
say that a 20 TWh capacity is more realistic.
Since 2004, several areas in Sweden have been designated by the Swedish Energy Agency as
being of national interest for wind utilization. The results of extensive wind surveys and
mapping carried out during 2008 show that there are much larger parts of Sweden that are
suitable for wind power development than was previously known. Parts of southern Sweden
and the inland area of the northern Norrland region have the best wind conditions.
The 2008 national interest areas for wind power are situated onshore, on lakes and in coastal
areas, as well as offshore in the Swedish economic zone. There are 423 areas covering around
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Wind power - Sweden
10 000 square kilometers or 2,2 percent of the area of Sweden. The Swedish Energy Agency
shows the national interest areas for wind power below:
Figure 1 - National interest areas for wind power, North Sweden
Figure 2 - National interest areas for wind power, South Sweden
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Wind power - Sweden
There are significant business opportunities in most aspects of wind power development,
? Project management
? Wind measurement
? Technical consultancy services
? Environmental impact assessments
? Speciality areas like de-icing of blades, radar interference issues
? Access to sites in harsh and difficult conditions
? Insurance and finance
? Operation & Maintenance
? Other advisory services
In the short term most opportunities for British companies will be in the onshore wind business.
In the medium to long term there will be significant opportunities also in the offshore and small
UKTI publishes international business opportunities gathered by our network of British
Embassies, High Commissions and Consulates worldwide. These opportunities appear in the
Opportunities portlet on the relevant sector and country pages on the UKTI website. By setting
up a profile you can be alerted by email when relevant new opportunities are published. New or
updated alert profiles can be set in My Account on the website.
CHARACTERISTICS OF MARKET
The Swedish wind power market is booming and new projects are announced almost on a daily
basis. Industry analysts project that there is a need for 4000-6000 new wind turbines in the
coming 10 years.
Sweden has generally a very strong industrial base with many highly competitive companies.
Since the expansion of wind power is a relatively new phenomenon however, the Swedish
supply chain for the national wind industry is still very much evolving.
Despite the fact that the number of industry players is still relatively limited Sweden has some
very strong companies supplying the global wind industry, i.e. SKF (ball bearings, remote
condition monitoring equipment), ABB (grid solutions, cables and transmission) and Roxtec
(cable insulation solutions).
The Swedish utility company Vattenfall is very active in the wind industry and have developed
large scale projects both in Sweden and the UK.
Swedish flagship projects include:
Realised projects / under construction:
? Lillgrund: Until December 2009 it was the world?s third largest offshore wind farm.
Developer: Vattenfall. Size: 48 turbines. Effect: 110,4 MW. Energy production:
? Lake Vänern: The world?s first offshore wind farm situated on a lake. Developer:
Vindkraft Vänern Kraft AB / DynaWind. Size: 10 turbines. Effect: 30 MW.
? Vertical Wind: Prototype plant for 4 innovative vertical axis turbines with direct-driven
generators at ground level. The Swedish Energy Agency, E.ON and Ericsson are
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Wind power - Sweden
financing the project which is being developed in the city of Falkenberg on the west
coast of Sweden.
? Markbygden: around 1100 turbines are projected in the north of Sweden (very cold and
harsh climate) by the company Svevind.
? Kriegers Flak: Offshore wind farm planned in international waters between Sweden,
Germany and Denmark by Vattenfall (in the Swedish zone). (Planned size: 128 turbines.
Estimated effect: 640 MW. Estimated energy production: 2,6TWh)
? Finngrunden: Offshore wind park outside the region of Gävleborg, developed by WPD
Scandinavia. (Planned size: 300 turbines. Estimated effect: 1500 MW. Estimated energy
production: 5,5 TWh).
There are a multitude of wind power projects being planned in Sweden, both onshore and
offshore. There are however some issues that need to be resolved before some of the more
large scale projects will be started.
Under the current green certificate system offshore wind is rewarded with the same amount of
green certificates as onshore wind despite the fact that it is much more costly to invest in and
maintain offshore wind farms. With a relatively low price of electricity many developers deem
that it is not profitable enough to invest in offshore wind. There is considerable pressure on the
government to improve the conditions for offshore wind after the subsidies for demonstration
plants were phased out in 2009.
Another issue that affects cooperatively owned wind farms relates to taxation. During 2009 the
Swedish taxi authority started to interpret a certain tax legislation in a way that effectively
removes the incentives for investing in wind farm cooperatives. After massive protests the
government has launched an inquiry to see how these cooperatives could become exempt from
An important development with large implications for the market for small scale wind devices is
the prospect of introducing ?net measurement?, a type of feed-in-tariff, in Sweden. Currently
the electricity trading system for small scale producers is heavily biased towards the local grid
owner who can charge the individual producer virtually any price for the grid connection and
other related services. In effect, this means that the price the electricity producer (often the
same as the individual consumer) gets for its input to the grid is only about half of what it has
to pay for buying electricity from the grid when the wind device is not producing any electricity.
Hence, currently it is not profitable for individuals to produce their own electricity through wind
power (or any other renewable source for that matter). This is about to change however. In
2007 the government ordered an Inquiry into the regulations for importing electricity from small
scale renewable sources into the grid. The recommendations from Inquiry state that the
individual producers should not have to be at the mercy of the grid owner (in terms of fees for
hourly metering, etc.). Instead, the Inquiry proposes a kind of feed-in-tariff whereby small
power plants can be connected without requiring hourly metering, hence leading to significantly
lower costs for small scale producers of renewable energy. At the end of 2009 the Government
presented a legislative proposal that unfortunately did not follow the recommendations of the
Inquiry. This proposal has been heavily criticised by the industry and other environmental lobby
groups and many expect to see a revised proposal from the government.
The current green certificate system is being criticised by the wind power industry for not giving
investors enough incentive to build large scale wind farms, although the level of the green
certificates have recently been raised, hence making it more profitable to produce renewable
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Wind power - Sweden
electricity. This is especially the case for offshore wind because of the large investment costs
involved. Many companies have placed their offshore wind projects on hold until better
incentives are in place. According to Vattenfall Power Consultants, it is more profitable to
acquire British wind parks than to start a project in Sweden. The government and the Swedish
Energy Agency has recognised the problem but it remains unclear whether any major changes
will be made to the certificate system. Another problem is the costs associated with connecting
wind farms to the grid. Currently, project developers have to cover these costs themselves.
KEY METHODS OF DOING BUSINESS
The Swedish wind market is relatively small and close-nit. Since the sector is experiencing rapid
growth many new companies are formed and others are diversifying from other sectors (mainly
automotive and advanced engineering). Swedish wind companies are generally interested in
receiving information about products and services from other countries and we believe that
many smaller companies are keen to establish partnerships with British companies with
experience of the UK market.
Other background information on doing business in Sweden can be found on UKTI?s website.
Simply go to the Sweden country page where you will find information on:
? Economic background and geography
? Customs & regulations
? Selling & communications
? Contacts & setting up
? Visiting and social hints and tips
MORE DETAILED SECTOR REPORTS
Research is critical when considering new markets. UKTI provides market research services
which can help UK companies doing business overseas including:
? Overseas Market Introduction Service (OMIS). Bespoke research into potential
markets, contacts and support during your visits overseas.
? Export Marketing Research Scheme. Advice on market research and help to
contact subsidised market research administered by the British Chambers of Commerce
on behalf of UKTI.
Contact your local International Trade Advisor if you are interested in accessing these services,
or for general advice in developing your export strategy.
Senior Trade & Investment Adviser
UK Trade & Investment Sweden
+46-8-671 30 53
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Wind power - Sweden
? Svensk Vindkraftstidning (printed publication in Swedish)
? ERA (Swedish language publication for the Swedish and Nordic power industry with
about 30 000 readers), also available online: www.era.se
? Ny Teknik (generalist engineering publication in Swedish, also available online:
? Nordiska project (website providing information about projects in various sectors in the
Nordic countries, including wind power)
? Green Britain (during the Think Britain week) in Gothenburg 16 June. Seminar and
match-making event with Swedish wind power industry organised by UK Trade &
Investment. For more information, please contact: email@example.com.
? Nationella Vindkraftskonferensen (in Swedish), 27-28 April in Kalmar, see:
? Vind 2010 (In Swedish), 15-17 September in Gothenburg: www.vind2010.se
? Miljöforum Öland, conference and exhibition focusing on small scale renewable energy
production, September 2010 on the island of Öland. www.miljoforum-oland.se
UK Trade & Investment?s Tradeshow Access Programme (TAP) can help eligible UK businesses
take part in overseas exhibitions. Attendance at TAP events offers significant benefits:
? possibilities for business opportunities both at the show and in the future
? a chance to assess new markets and develop useful contacts
? grants are available if you meet the criteria
? UKTI staff overseas will be available to assist delegates
Find out if you are eligible to apply to attend this event, and more about the support UKTI can
offer, on the UKTI Market Entry web page.
Details of TAP events can be found in the Events portlet on the Sweden page. Other Market
Visit Support may be available via your local International Trade Advisor.
Swedish Wind Energy: www.svenskvindenergi.org
Swedish Energy Agency: www.energimyndigheten.se
UKTI?s International Trade Advisers can provide you with essential and impartial advice on
all aspects of international trade. Every UK region also has dedicated sector specialists who can
provide advice tailored to your industry. You can trace your nearest advisor by entering your
postcode into the Local Office Database on the homepage of our website.
For new and inexperienced exporters, our Passport to Export process will take you through the
mechanics of exporting. An International Trade Adviser will provide professional advice on a
range of services, including financial subsidies, export documentation, contacts in overseas
markets, overseas visits, translating marketing material, e-commerce, subsidised export training
and market research.
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