Market Trends of Sweden Wind Energy Industry
This section covers the major market trends shaping the Sweden Wind Energy Market according to our research experts:
Onshore Wind Energy Segment Dominates the Market
- Onshore wind energy power generation technology has evolved over the last five years to maximize electricity produced per megawatt capacity installed and to cover more sites with lower wind speeds. Besides this, in recent years, wind turbines have become more extensive with taller hub heights, broader diameters, and larger wind turbine blades.
- 81% of the new wind installations in Europe were onshore wind, with 14.05 GW. Sweden, Germany, and Turkey are building the most onshore wind installations.
- During the past year, Sweden has seen a record number of wind installations as onshore installations have more than doubled year-over-year. Sweden now has the most onshore wind capacity in Europe, with 2.1 GW of new onshore installations.
- Sweden holds 11.9 GW of onshore wind energy installed in 2021, and the wind-generated electricity in Sweden accounted for 27.1 TWh in 2021. As energy demand rises, Sweden is adopting renewable energy as a sustainable and clean form of energy. Embracing onshore wind energy and higher wind potential and energy demand attract companies to increase investment.
- In July 2022, a project was announced in Sweden to build a new 277 MW wind farm starting in 2025. Three companies will be in charge of the project, Siemens Gamesa, Arise, and Foresight is likely to collaborate on a new scheme in Sweden.
- Therefore, owing to the above points, the onshore wind energy segment is expected to dominate the market during the forecast period.
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Increasing Wind Energy Installations Likely to Drive the Market
- The share of renewable energy in Sweden keeps growing. Already in 2012, the country reached its 2020 target of 50 percent. By 2040, Sweden will produce 100 percent renewable electricity. Out of the total electricity produced, some 16 percent comes from wind power.
- A steady increase in wind turbines has been observed in Sweden between 2009 and 2021, with a significant increase in 2021, when there were 4,754 wind turbines.
- Going forward, In 2021, Sweden added 2,104 MW of wind power generation capacity, all onshore. The addition took Sweden's cumulative wind power generation capacity to 12.1 GW in 2021. In terms of new installations, the country accounted for approximately 8% of the newly installed capacity in Europe in 2021. Further, according to the Swedish Energy Agency, the electricity generated from wind is likely to rise from 27.4 TWh in 2021 to 46.9 TWh in 2024 in Sweden. This is mainly due to the expansion of installed wind turbine capacity.
- In February 2022, A proposal was submitted by Sweden for the construction of wind power plants that will generate 20-30 terawatt hours (TWh) per year to reach 120 TWh at a later stage. These areas are located both east and west of the country.
- In June 2022, Renewable Power Capital (RPC), a UK-based energy investment firm, signed an agreement to connect four wind farms in Sollefte and Kramfors municipalities with E.ON Energy Distribution. Under this agreement, four wind facilities are expected to produce 561 MW of clean energy for regional and national systems. Among the four wind farms included in the agreement are the Sörlidberget wind farm, with a capacity of 132 MW, and the Knäsjöberget wind farm, with a capacity of 92.4 MW. There are also two wind farms included in the agreement, Vitberget and Storhöjden, with capacities of 171.6MW and 165MW, respectively.
- Moreover, for Sweden to meet a political goal of generating all power from renewables by the year 2040, installed onshore capacity may need to almost triple in the next 20 years.
- In addition to the rapidly growing onshore wind power market in Sweden, various new offshore wind power projects are also under various development stages in Sweden. For instance, in February 2022, Sweden-based renewable project developer OX2 submitted a permit application to build 1.8 gigawatts of an offshore wind farm off the coast of Skane in the south of Sweden under the act of the Exclusive Economic Zone of Sweden.
- Hence, owing to the above points, increasing wind energy installations is expected to drive Sweden's wind energy market during the forecast period.
