Offshore wind is a promising solution to energy deficit in southern Sweden

June 3, 2021
 | 
2 min read
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Swedes in the southernmost region of the country use far more electricity than the region generates. While the region S4* accounts for 18 % of the electricity usage in the entire country, it only generates around 4 % of the total electricity produced in the country.

This creates an energy deficit that makes southern Sweden dependent on electricity imports from neighboring regions and countries. And the Swedes in the region pay the price, as the region sees the highest electricity prices in the country.

What little electricity is generated in the southernmost region stems mostly from wind power, with 64 % of the generation coming from wind, making the region the national leader with regards to share of wind power in the energy mix. The region is therefore already tuned in to the option of wind power. If the region is to supply its own energy needs in the future, it would make sense to look in the direction of wind power including offshore wind power.

Low cost of energy makes offshore wind competitive in Sweden

Offshore wind looks especially promising for southern Sweden due to the high wind speeds close to capable supply chains, suitable harbors and easily accessible grid connection points. The water is shallow, allowing for fixed-bottom wind turbines.

Last, but not least, the two southernmost regions in Sweden together account for 80 % of the nationwide energy usage. These populous regions are home to many of Sweden’s biggest cities, including Stockholm, and as urbanization and electrification increases, the southern half of Sweden is only going to need more electricity. 

Both of the southernmost regions (S3 and S4) rely on energy imports currently and would benefit from increased local electricity production.

Sites around the southern tip of Sweden could achieve attractive cost-levels of down to ~40EUR/MWh for offshore wind energy constructed in the mid to late 2020s, according to Aegir Insights' market report on Sweden, and could be attractive options. Already some projects are on the drawing board, with the Swedish part of Kriegers Flak for instance hoping to become operational by 2028 according to Vattenfall.

Learn more about Aegir Insights’ view on the future of Swedish offshore wind and how it could be a promising solution to the energy deficit in southern Sweden. Reach out to us and request access to our research products.

*The regions are electricity bidding areas, as defined by Svenska Kraftnät here: https://www.svk.se/en/national-grid/operations-and-electricity-markets/

Tagged: Europe
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