Government body calls for support of offshore wind in Sweden

The development of offshore wind projects off the coasts of Sweden is not commercially feasible, according to a government panel tasked with speeding up and reviewing the process for authorising new wind farms.

The head of the commission, however, said that an analysis showed this would not guarantee the construction of more wind parks.

Magnus Hermansson, a reporter, said that there is no area near the coasts of Sweden where the income expected exceeds the costs anticipated.

He said that 99.5% offshore wind farms in Northern Europe built over the past decade required some form of government support.

Environment Minister Romina Poumokhtari stated that the government would "take into account" the findings of this commission, but she did not promise new subsidies.

Pourmokhtari stated that "this government is aware of the need to change our current system and take a number measures to improve offshore wind's situation in Sweden." "A new model with an auction is an improvement." If this is not sufficient, the government will need to take a closer look.

According to the government, Sweden must double its electricity production to 300 terrwatt-hours (Twh) in order to meet demand and achieve a zero emission goal.

The government wants to build ten nuclear power plants, and it has offered to shoulder the costs with low-interest loans.

The government has also cut subsidies for connecting offshore projects to Sweden's grid. Vattenfall, the state-owned utility, halted plans in October for the Kriegers Flak offshore wind farm - one only of three projects that have been approved in recent years.

The government will offer financial incentives to local communities that accept new wind farms.

The government has rejected 13 out of 14 offshore wind projects, citing concerns from the military regarding security in the Baltic Sea.

The rejection of many applications is due to the fact that Sweden allows offshore wind developers apply anywhere. The new system would identify areas where building was possible, saving both time and money. (Reporting and editing by Terje Solsvik, Barbara Lewis and Simon Johnson)

(source: Reuters)