Municipalities Abandon Wind Power After Failure – Attempt to Sell Off

Samnytt has reported in several articles on how wind power has become a costly flop for many municipalities and companies, as well as its negative impact on the surrounding environment. Now, yet another group of municipalities has reached the same conclusion and is attempting to sell off their wind turbines.

Emåbygdens Vind is jointly owned by the municipalities of Hultsfred, Mönsterås, and Högsby. In 2012, the three municipalities invested in one of the four wind turbines at Eolus’s Nötåsen wind park in Sundsvall. Högsby owns 20 percent, while the other two municipalities each hold 40 percent. The other three wind turbines are owned by Malmö, Uppsala, and Värmdö municipalities respectively.

The investment has not worked out as hoped, and the municipalities have had to inject more funds on several occasions. More than half of the share capital is gone, and attempts to sell their stake have been ongoing for some time without success.

But now, it appears that a buyer has finally been found: Amokabel, which is offering 2.25 million kronor for the entire company.

“Since we do not foresee a turnaround in the foreseeable future, the decision to sell is very easy. I think we’re getting a good closure to our involvement in this company. We are ending our engagement in a businesslike and honest manner. It feels incredibly relieving to get rid of this troublesome project that has weighed us down for several years,” says Anders Johansson (Centre Party), Chairman of the Municipal Executive Committee, to Barometern.

According to Johansson, it has been impossible for the municipality to make the project profitable. Before the sale can go through, the municipalities must pay off loans amounting to several million kronor.

300,000 Kronor for Investigation

Another municipality that has had enough is Sigtuna, which now wants to get rid of a wind turbine in Lund and another in Ockelbo. There, too, profitability has not materialized, and costs are expected to rise as the wind turbines age.

An investigation into the possibilities of a sale will now be conducted, and the cost for this alone is estimated at about 300,000 kronor.

Costly Renovations

A third municipality abandoning wind power is Falkenberg. There, the executive committee’s working committee has decided to propose the sale of the five wind turbines in Lövstaviken. Last year, bids were invited and one was received that was considered reasonable.

“This is a good decision that means we take responsibility for the municipality’s finances while ensuring sustainable development. This is a facility that requires large investments, so it is reasonable that an operator with the right resources takes over,” says Per Svensson (Social Democrats), Chairman of the Municipal Executive Committee, Falkenberg municipality.

The wind turbines have suffered technical issues in recent years and require extensive investments to return to full production. The costs for this are estimated to be at least 20 million kronor.

“We see that there are large investment needs and uncertainties linked to the facility. By selling the wind turbines, we reduce our financial risk and can focus on our core business,” says Paulina Claeson, Deputy Head of Department, Municipal Executive Administration, Falkenberg municipality.

The purchase price amounts to 12.5 million kronor but does not cover the entire remaining debt, meaning the municipality will have to cover the difference. The sale is taking place despite claims that the wind turbines generated a profit of about 100 million kronor in the period 2006–2025. The income is said to have covered running costs, interest, and investment, and to have provided a surplus to the municipality, meaning the investment has been labeled profitable.

The buyer is Vindlövet AB.

“We see potential in the wind farm and want to develop it to increase production in the long term. At the same time, we want to contribute to local energy production and a more sustainable Falkenberg,” says Glenn Johansson, representative for Vindlövet AB.