Sweden Faces Sharp Decline in Wind Power Investments Amid Low Prices and Political Uncertainty
Investment in Sweden's new wind power projects has drastically declined due to low prices, profitability struggles, and political uncertainty, threatening future electricity production.
- • Only one small wind turbine investment was made in the third quarter of 2025, marking three consecutive quarters of minimal investment.
- • Low electricity prices, especially in northern Sweden, are a major factor behind the investment stagnation.
- • Existing wind farms face profitability issues, leading to bankruptcies in northern Sweden.
- • Political uncertainty and nuclear power subsidies are further discouraging investors in wind energy.
Key details
Sweden's investment in new wind power projects has come to a near standstill, with only a single small wind turbine investment reported in the third quarter of 2025. This marks the third consecutive quarter of minimal activity, signaling serious concerns about the future of new electricity production beyond 2027. Anton Johansson, head of analysis at Green Power Sweden, highlighted the root causes: low electricity prices particularly in Norrland, where demand has stagnated over the last 40 years despite increased production, leading to a surplus and high export levels. In southern Sweden, where electricity prices are higher due to insufficient production, challenges such as permitting difficulties and limited land availability continue to hamper wind energy investments. Existing wind farms, especially in northern regions like electricity area 2, are struggling with profitability, contributing to multiple bankruptcies. Moreover, political uncertainty, especially government subsidies favoring nuclear power, is creating reluctance among investors in wind energy. Johansson stressed the need for clear government policies to promote coexistence of various energy sources and an increase in electricity demand in high-production areas to improve price levels and spur future investments.