The Swedish government has presented a major investment plan for Swedish energy security on 9 September. The aim is to create a robust electricity system that can meet a doubling of electricity demand. Part of the plans is to provide compensation to municipalities for the expansion of wind energy.
Stimulus for municipalities In order to increase the incentives for municipalities to approve new wind energy and to compensate municipalities that have already given permission for the construction of wind energy, the government is proposing support for municipalities.
The municipalities will now receive financial support equal to the property tax if they choose to say yes to wind farms. This decision will make it easier for more municipalities to approve major wind energy projects.
The investment amounts to Swedish Krona 340 million in 2025 (around 30 million euros). SEK 370 million is estimated for 2026 and SEK 400 million in 2027.
Local community
As a result, the Swedish government also wants to create a legal arrangement to ensure that the local community can share in the wind farm's revenues and that owners of adjacent properties have the right to buy back the property at a price equivalent to what the property would have been worth if the park had not been built.
"It's great that the Swedish government is coming up with this money for municipalities that are working on the greening of our energy supply.
This is also a very good idea for the Netherlands, especially now that there will be a two-sided Contract for Difference in 2027 and the government will actively skim off onshore wind farms.
It would be great if they could use this government revenue from the CfDs to introduce compensation for municipalities, as is already being done by the Swedish government."
Response BayWa re
Immediately after the announcement, on September 9th, our member BayWa re stated on LinkedIn that they were very pleased with the newly proposed Swedish policy.
"The Swedish government has just announced a game-changing decision for wind energy! Municipalities will now receive financial support equal to the property tax if they say YES to wind farms, instead of using their veto rights to block new onshore wind farms (which happened in 75% of cases this year!), they can now assess how they can actually benefit from saying yes.
This will make it much easier for municipalities to approve wind projects – something we in the business community have been fighting for over the last 10-15 years!
Today is truly a great day for renewable energy and the future of wind energy in Sweden!
(Photo: BayWa re)
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