Peter Daniel and Per Blom, PA’s energy experts, have had an article published on the future of wind power in Sweden.
The article explains how Sweden’s wind power industry is rapidly streamlining, which suggests that it is likely to have a promising future as part of an integrated renewable European electricity system.
Peter and Per explain: “The ownership structure [of wind power generators] has changed significantly, with the large institutional shareholders now taking over from the former players who often had limited experience in the operation of complex technology and infrastructure solutions.”
They go on to describe the findings of PA’s recent energy benchmarking study, which highlighted that the costs of operation and maintenance in the wind power industry in the Nordic countries reduced by 15 per cent between 2008 and 2011.
“It is obvious that players utilise economies of scale and that the industry as a whole has matured and become more professional. However, there is still much to do, and we believe that the operation and maintenance of Swedish wind power can be improved significantly, by the help of new players entering the market,” say Peter and Per.
They explain that, overall, the effect of the increased production of renewable electricity has probably contributed to lower electricity costs for households and industry. Despite declining margins in the short term, they believe there are good opportunities for power generators to make money in wind power in the future.
Continuing, the article describes how the energy problems in Europe after Fukushima, combined with political insecurities around Russian natural gas, are likely to drive development towards an integrated electrical system where Swedish wind power will largely replace fossil electricity in countries such as Denmark , Germany and Finland. The authors explain that this integration could give Sweden an important role both as a wind exporter and as a supplier of balance power from the country’s hydroelectric plants.
“It is time for investors, business leaders and politicians to realise that wind power is one of the future export industries, and to act accordingly. Energy certificates have worked well as long-term instruments, and should not be changed by meddling politicians,” say Peter and Per.
Peter Daniel and Per Blom, are energy experts at PA Consulting Group
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