Vattenfall

“In the German North Sea, the areas for offshore are limited. One wind farm casts a shadow over another. We are building the wind farms without state subsidies. For other North Sea tender sites, it didn't seem attractive to us. Had the federal government hedged price risks, the assessment might have been different.”

“Securing the irrevocable permit and reaching our full investment decision marks a defining moment for Nordlicht.”

Vattenfall has decided on a 2026-2030 investment plan of SEK 165 billion net (SEK 239 billion gross). Growth investments total SEK 92 billion, with the largest share — SEK 59 billion, or 64 percent — planned for new wind power. The difference between gross and net reflects partnerships for offshore wind projects and assumptions about revenues from divesting onshore wind and solar projects developed for sale.

“By accelerating Germany's energy transition and supporting industrial decarbonisation, it will provide clean, reliable energy while driving innovation and sustainability in the sector. We look forward to realising this important project in close collaboration with our supply chain partners.”

Vattenfall has decided to pause the development of the offshore wind power project Swedish Kriegers Flak until further notice, due to unviable investment prerequisites in Sweden. One of the main prerequisites for investing in the project is a reasonable connection point to the national grid offshore. Would the investment prerequisites improve and the permits are still valid, the project can be resumed.

“The Netherlands is taking yet another major step forward in the energy transition with IJmuiden Ver. Combining wind, solar and hydrogen, this project will create a state-of-the-art energy system and support further decarbonisation of industries and our society. We are extremely proud to have been awarded this permit and look forward to implementing our plans for this energy park together with CIP.”

“Offshore wind energy is an essential contributor to the energy transition in Europe and is expected to replace fossil fuels on a large scale. Partnerships play a crucial role in transforming European industries, while strengthening competitiveness. We are pleased to deepen our relationship with BASF for yet another important offshore wind project — and that way accelerate the journey to fossil freedom together.”

Vattenfall will invest EUR 1.58bn in new wind power capacity in 2024 and 2025, down from EUR 3.34bn in the previous two years — a 50 percent reduction. The energy market will remain turbulent and insecure for a while. Increased inflation and interest rates are impacting the company and suppliers, and bottlenecks caused by less global trading mean Europe needs to ramp up its own manufacturing.

“The Norfolk Offshore Wind Zone is incredibly important for the energy transition and reaching net zero. Today's agreement with RWE is great news for the UK's energy security, ensuring the Zone's continued journey towards providing clean electricity for over 4 million homes. Both the UK and the offshore market remain attractive over the long term, and we will focus our offshore investments in projects which are appropriate to our current risk appetite while continuing to operate and grow our existing fleet of assets.”

“Vattenfall continues to aim for NetZero in our full value chain by 2040, with our strategy firmly in place. We will focus on financial stability and prioritising profitable business opportunities.”

“Vattenfall wants to be a leader in the energy transition and offshore wind is essential for energy security and achieving net-zero.”

“We have decided to stop the development of Norfolk Boreas in its current form and not take an investment decision now due to mentioned factors, which triggers the impairment. […] Higher inflation and capital costs are affecting the entire energy sector, but the geopolitical situation has made offshore wind and its supply chain particularly vulnerable.”

“Simply put, the market framework in the UK is supposed to incentivise investment in renewables but it doesn't reflect the current market environment. If we take the Norfolk Boreas project, we locked in the revenue element with the CfD in the UK over a year ago when market conditions were completely different. What we see today with the new market conditions is that it simply doesn't make sense to continue this project.”

“We have seen cost increases in the supply of offshore wind of up to 40 percent for the entire market. Of course it hits projects that are in development especially. The UK does not currently have the investment environment needed to meet its offshore wind targets.”

“We are continuing to develop the Norfolk cluster to see what the impact is. Only 12 GW of new capacity was sanctioned in 2022 versus the 30 GW Europe needs annually. Suppliers may pass inflation and higher interest rates onto projects.”

Wind power doubled its contribution to underlying operating profit, in part owing to new capacity from Kriegers Flak in Denmark. Renewable capacity now stands at 4.5 GW, an increase of 1.2 GW since 2017. Wind power accounts for 54 percent of Vattenfall's total investments.

“With today's inauguration, we are taking one step closer towards our goal of enabling fossil-free living within one generation. Kriegers Flak stands as a strong contribution to the green transition, which is why we are proud that the wind farm is now ready to provide fossil-free power to Danish homes and industry.”

“Kriegers Flak has been a very successful project, which, despite being constructed amidst a global pandemic, is in operation ahead of schedule. It shows the commitment of society, our partners and Vattenfall to a carbon-neutral future. At the same time, it underlines our strategic ambition to accelerate fossil-free living with the power of renewables.”

“The Hollandse Kust Zuid project underlines our commitment to supply the Netherlands and Europe with fossil free electricity. In addition, the investment decision shows that our determination to deliver on our goal to enable fossil free living within one generation remains firm despite the COVID19 pandemic.”