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Market Chatter: Sweden Approves 2 Offshore Wind Farms, Overhauls Permitting System

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The Swedish government on Thursday approved two new offshore wind farms in the southern Bothnian Sea and in the northern Skagerrak, to deliver up to 19 terawatt-hours of clean electricity each year, according to an opposite-the-editor article by certain government officials in Expressen Sweden.

Authorities also approved a large onshore wind farm in Markbygden, outside the northern city of Pitea, according to the report, while rejecting 11 other offshore wind applications, citing impact on the country's defense capabilities.

Besides this, Sweden also unveiled plans to replace its existing "open door" permitting model with an auction-based system for future offshore wind developments.

Under the new framework, the state will first identify suitable areas after considering factors, including national defense, shipping, fisheries and environmental impacts before developers compete for construction rights, which the government was intended to provide greater investment clarity, while reducing permitting delays.

However, the decision was criticized by Daniel Hellden, spokesperson for Sweden's Green Party in a post on X. Hellden said that the government's move closed the door on 90% of the offshore wind projects that were up for consideration, saying that four years were lost for the companies, the climate and the country's energy industry.

Sweden's Ministry of Energy and Industry did not immediately respond to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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