Another wind energy project ends in financial disaster – Doc

A Swedish wind power plant is applying for reconstruction due to a losing agreement with Norway’s Hydro Energi, which is allowed to buy electricity at a fixed, low price. But Hydro Energi says no.

It is the Markbygden wind farm in Norrbotten, northern Sweden. The facility would be the largest in Europe, and was expected to produce ten terawatt-hours of electricity annually, he writes. Industry today.

Total Norwegian consumption ranges between 130 and 140 TWh.

But parts of the region suffer from problems. Markbygden Ett, which operates 179 wind turbines, applied for the reconstruction on November 2, Petio-Teidningen wrote.

One Markbygden printer Even Umeå tingsrätt said that the payment difficulties were due to a very lucrative electricity contract with the Norwegian company Hydro Energi. The agreement, according to Petio-Tedningen, means that the company pledged to sell a specified amount of electricity at a fixed price for 19 years. When a wind farm does not produce enough electricity, the company is forced to cover the deficit with its own purchases from the electricity market.

The Chinese state owns 75% of the company, which has been incurring losses for several years. Through its giant Belt and Road project, China is heavily involved in so-called renewable energy in Sweden.

China General Nuclear Corporation (CGN) is controlled by the Chinese Communist Party. They have invested tens of billions of kroner in Swedish wind energy. The company is the majority owner of six wind farms, including in Ljusdal, Galivar and Beta, and is the largest foreign player in the wind energy industry.

Swedish wind power is part of China’s global plan – and now cooperation has been halted after corruption scandal

Now the situation is broken. Markbygden Ett buys a lot of its electricity from the market in order to adhere to the agreement with Hydro Energi, which pays well below the market price.

In 2022, the company had to purchase replacement electricity for 61.6 million euros, equivalent to 733 million Norwegian kroner. The forecast for 2023 is that expenses will far exceed revenues. The turnover is expected to reach 40 million euros, with a loss of 52 million euros.

Markbygden Ett will therefore carry out the reconstruction process, which includes terminating the agreement with Hydro Energi and renegotiating the debt, which will be around SEK 6 billion. – We are aware that Markbygden AB has applied for reconstruction, so we are connected to this process, and the case will be heard in the Umeå District Court. There will be a new hearing on Monday, Anders Wendig, CIO of Norsk Hydro, tells NTB.

This is not the first time that wind energy has proven completely unprofitable in the absence of huge subsidies. It is unlikely to be the last time either.

The interesting thing about this case is that promises to guarantee a low price for electricity to a large customer like Hydro Energi cannot be due to greed or corruption, if one does not believe that the management at Markbygden Ett was bought and paid for by Hydro.

In this case, it means the company is led by people who already believe that wind energy can provide cheap and stable electricity. It’s hard to say what’s scarier.

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