Vattenfall blames investment conditions as it pauses major offshore wind farm

It had received final approval for its 640MW Kriegers Flak (Sweden) offshore wind farm, but has now paused development. 

Vattenfall, which owns 100% of the project, said the decision means the wind farm’s planned 2028 commissioning date can no longer be met. 

The Swedish utility claimed that investment conditions in the Swedish offshore wind sector were behind its decision. 

“The investment prerequisites for offshore wind in Sweden are currently not viable and Vattenfall has therefore decided to pause all further development of the project… Would the investment prerequisites improve and the permits are still valid, the project can be resumed,” it stated. 

The decision follows Vattenfall CEO Anna Borg’s comments given to the Reuters news agency that offshore wind in Sweden was being held back by a lack of clarity on grid connections for offshore wind. 

A spokesperson for the company suggested grid connection concerns were related to the Kriegers Flak pause. 

“As things stand today, it is not profitable to build [Kriegers Flak Sweden]. As communicated by Vattenfall earlier, a main prerequisites for the project is that we have a reasonable connection point to an expanded offshore grid,” a Vattenfall spokesperson told Windpower Monthly. “We have been clear that it is difficult to invest in new offshore wind power in Sweden with the current investment conditions,” they said.   

The spokesperson added that the company remained committed to onshore and offshore wind projects in Sweden. 

“Vattenfall will continue to develop both offshore and onshore wind power in Sweden in the future and is working intensively to be able to invest in new nuclear power. Vattenfall currently has offshore wind power projects in Sweden totaling 18TWh by 2035,” they said, citing the 1200MW Kattegatt Syd , 1400MW Vidar and 1400MW Poseidon offshore wind farms the company is developing in the country. 

Vattenfall meanwhile confirmed it currently has no plans to sell Kriegers Flak.