Government report on tender system aims solve challenges in Sweden

-Two important takeaways from the Swedish market last week were that the government report on tender system intends to solve the challenges in the Swedish permit system making it predictable for developers and that the industry, with the submission of permits, still find the Swedish offshore wind market commercially attractive, says Stein Erik Skilhagen leader of the working group for Sweden in Norwegian Offshore Wind.

With the latest development 4 projects have received permits and 12 are in the pipeline of receiving permits. Two regions currently stands out for new offshore wind projects in Sweden: West coast and Gulf of Botnia.

Tender system

Governmental report: The proposal is that new permitting system will be a state lead tender system similar to many other European markets. It is proposed to be in place by 1. July 2026. Projects with permit application submitted prior to this date will be processed under the current system.

Background: The current regulatory framework is not fit for purpose. 5 challenges have been identified: The planning tools are insufficient; No effective process for priority; No system for exclusive right; No effective coordination of permits and connection to transmission network; Uncertainty for as to if and when the projects (with permits) will be realised. The new system aims to solve these challenges.

Action 1: Simplified rules: 4 simplifications have been suggested. All four address the permitting process for the export cable.   

Action 2 Tender system for permitting

• State lead system: The government will designate maritime areas for offshore wind power.
• Process: In these areas the tendering authority will award licenses for offshore wind power to a project developer. The licence and the award procedure should be designed on the basis of any guidelines provided by the Government. The basic principle of a planning-based scheme is that one body is mandated to take a holistic approach to planning, with appropriate trade-offs between different interests.
• Tendering authority: Swedish Energy Markets Inspectorate, the Swedish Energy Agency,  the Swedish Agency for Marine and Water Management or the state-owned electricity transmission system operator Svenska kraftnät could be considered for this task.
• Land and Environment Court: A permit for constructing an offshore wind farm and laying submarine cables must be granted by the Land and Environment Court.(Assessment Environmental Code).

Two new permit applications

Statkraft has submitted an application for a permit for the construction of two offshore wind farms in the Swedish Bothnian Sea. The projects named Sigma (3.3GW)  and Lambda North (1.7 GW) are both bottom fixed and are two of 12 projects that have applied for permits. 9 of the projects are located in the Gulf of Botina and 3 are located  on the West coast of Sweden. Both projects is bottom fixed and has the). In total, it is about a possible annual electricity production of 6.7GW,