In Sweden, bankruptcies in the wind power industry are on the rise. Numerous operators are slipping into the red because cheap electricity is destroying their cost-benefit analysis. At the same time, the projects are burdened with high debts, causing international investors to lose confidence. This increases the threat to the entire European energy transition. (deutsche-wirtschafts-nachrichten: 27.08.25)
Companies threatened with bankruptcy
The flagship Markbygden Ett project is in deep crisis. While a settlement with Hydro has provided compensation, the enormous mountain of debt remains. The risk of further bankruptcies is high. Price controls also led to bankruptcies at Aldermyrberget Park. Investors are now seeking takeover opportunities there, while the plants are generating losses despite cheap electricity.
Överturingen presents a similar picture. Operator Cloud Snurran terminated its contract with Hydro because the agreed deliveries were not forthcoming. While this move loosens the price shackle, financing remains fragile. Smaller operators like Kalix Wind have already gone bankrupt, and experts warn of a chain reaction in the sector.
Bankruptcies pose a risk for Europe
This development poses systemic risks for Europe. Sweden supplies a high proportion of green energy, but cheap electricity from overproduction is driving profits to rock bottom. With rising interest rates and growing uncertainty, many investors are losing interest. At the same time, a lack of grid capacity is making feed-in even more complicated.
As more and more projects suffer from debt, there is a risk of even more bankruptcies. This trend endangers the stability of the electricity market and increases dependence on fossil fuels. For consumers, this means greater price fluctuations and less security of supply.
A Wind Power Sector at a Crossroads
Sweden’s policy is focused on a balance between nuclear power and renewable sources. But delays in expansion are exacerbating uncertainty. Without reforms in permitting, grid planning, and financing, a wave of new bankruptcies threatens to permanently weaken the industry.
Only clear regulations can restore investor confidence. If debt is not reduced and prices stabilized, the sector will remain crushed by cheap electricity revenues. Thus, Sweden’s wind power sector is at a crucial turning point with consequences for all of Europe.