The wind power market in Sweden has strong potential for growth among other sources of power in renewable energy space. Government initiatives and strong potential for wind power generation has played a strong role in attracting investments in this segment. Growing demand for green energy and the targets set for electricity generation through wind power are expected to boost the market. The report begins with an overview of the wind power industry in the European Union indicating the installed capacity, growth and the electricity generated as well as the future growth expected in the market. Sweden’s current and future wind power scenario has been covered including installed capacity, electricity production mix and the forecasted growth based on energy targets. An analysis of drivers explains factors contributing to the huge potential based on the geographical advantages, policies discouraging conventional energy use, Green Certificate System, cost considerations and EU directives. The key challenges identified include legislative shortcomings, negative externalities and weakening of the Swedish crown. The major government programmes and initiatives forwarded towards the development of the industry including Electricity Certificates, climate and energy policy, programme supporting technical development, Vindforsk programme, grants for research and development in the field of wind energy have been discussed. Competition section profiles of the major players in the market. The section contains a snapshot of the corporation, financial performance and business highlights, providing an insight into the existing competitive scenario.

1. Wind Energy - Sweden
September - 2009

2. •Market Overview
•Drivers & Challenges
•Government Regulations
•Competition
•Key Developments
WIND ENERGY – SWEDEN.PPT 2

3. Sweden’s liberalized energy market provides strong
opportunities for players in the wind energy sector
Overview Installed Wind Energy Capacity
• Sweden liberalized its electricity market in 19- -, MW
opening both electricity trading and electricity 1,200
G
production to competition 1,000
LE
u% F
• Established a planning framework of U TWh from 800
P
wind power by 20 -- 600 D
E
C
V TWh on land and W TWh offshore B
A
M
400
• The wind energy potential in Sweden is estimated to
A
200
be ~X TWh/year
S
0
2002 2003 2004 2005 2006 2007 2008
Future Wind Energy Outlook Electricity Production Mix
TWh
• Sweden has the highest renewable energy target, by Z2
160 Z1 Z4 Z5
20-- , of all EU member countries u1%
u2% Z3
u4% u5% Wind
140 u3%
Account for b% of final consumption of energy Hydro
120 v1% v2%
• Targeted capacity stands at T MW in 20 -- and XX – v3% 45%v4% v5% Nuclear
100
YYMW by 20-- Biofuel
80
Others
• Under existing legislation 60
w1% w2% w4%
Generation will reach LTWh by 20-- 40
w3% w5%
• Changes in legislation will lead to the target 20
x1% y1% x2% y2% x3% y3% x4% y4% x5% y5%
generation by 2020 0
2004 2005 2006 2007 2008
Source:
WIND ENERGY – SWEDEN.PPT 3

4. Drivers and challenges
Drivers
Challenges
Geographical advantages
Legislative shortcomings
Policies towards discouraging the use
of conventional energy sources Negative externalities
Green Certificate System
Weakening of the Swedish crown
Cost considerations
EU directives
WIND ENERGY – SWEDEN.PPT 4

5. Executive Summary
Sweden has a liberalized electricity market since 19--
In 20--, installed capacity was at XX MW
Market
Plan on generating U TWh from wind power by 20- -
Wind energy potential is estimated to be ~V TWh/year
LE
Drivers: Geographical advantages, policies discouraging conventional energy use, Green
Drivers & Certificate System, cost considerations and EU directives
Challenges
P
Challenges: Legislative shortcomings, negative externalities and weakening of the Swedish crown
M
Electricity Certificates – A fixed quota based system for renewable electricity generation
Government
SA
Climate and Energy Policy – Towards increasing total energy consumption via renewable energy
Programmes supporting technical development – Funding projects to enhance offshore wind
technology
Vindforsk Programme – Analyzing shortcomings in wind farm applications procedures and grid
Initiatives capacity. Developing cost effective wind power plants and design.
Grants for R&D – Aimed at environmental sustainability, purchase of technology and
development programmes prior to market entry
Other initiatives are aimed at developing technical expertise, providing financial incentives and
streamlining the legislative process
The market comprises of a many players in the utility, turbine manufacturing and consultancy
space
Competition Major Players
– Company 1, Company 2 and Company 3
WIND ENERGY – SWEDEN.PPT 5

6. Government Initiatives
Electricity Certificates
Climate and Energy Policy
Programmes Supporting Technical Development
Key Initiatives
`
Vindforsk Programme
Grants for research and development in the field of wind energy
Other developments
WIND ENERGY – SWEDEN.PPT 6

7. Government Initiative (3/7)
Programmes Supporting Technical Development
• In 20--, the Swedish Energy Agency launched a program to support technical development for large-scale offshore
Inception and plants and plants in artic areas
Purpose • The aim was to stimulate the market, achieve cost reduction, and gain knowledge about environmental effects
from wind power offshore and in the arctic areas
• Over 20-- -20--, the budget was USD XX mn
Investment
• The budget sanction over 20-- - -- stands at USD YY mn
Estimated production and estimated year of
Project Recipient Company Support (USD mn) Location
operation
Project 1 Company 1 U Offshore A GWh; operating since 20--
Project 2 Company 2 V Offshore B GWh; planned for 20-- but recently postponed
Largest Swedish
Project 3 Company 3 W C GWh; planned for full operation in20--
lake
Onshore
Project 4 Company 4 X D GWh
artic
Project 5 Company 5 Y Offshore No production. Only development program
Project 6 Company 6 Z NA No production. Only development program
Source:
WIND ENERGY – SWEDEN.PPT 7

8. Players in the Market (1/15)
Company Snapshot: Company 1
Corporate Information Financial Performance
Headquarters Hassleholm Revenue
Revenue Profit
LE
USD mn Profit / Loss USD mn
Founded 19--
80 12
D
P
Planning of wind power plants, 10
Area of Expertise management of wind power installations 60
C 8
M
and consultancy 40 6
A
B
XX – Chairman 4
Key People 20
S
YY - CEO A 2
0 0
2005 2006 2007 2008
Business Highlights
• Plans on establishing U turbines in 20-- at an investment of USD ZZ mn
• Planned constructions include
• v wind turbines in W, which is expected to start by 20--; X wind power plants in the Y municipality at an investment of USD VV mn; L
wind turbines in M at an investment USD of NN mn; wind farm consisting of P wind turbines at Q, municipality of Bollnas; R wind
turbines in municipality S; T wind turbines between U and VV and WW
• Partnerships
It is partnering with EE to construct AA wind turbines, north of the Swedish town BB with turbine capacity of CC-DD MW
Partnered with FF to
– Build a wind farm in G, south Sweden which will comprise of H wind power turbines
– Develop a J turbine wind farm in K
Source:
WIND ENERGY – SWEDEN.PPT 8

9. Thank you for the attention
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WIND ENERGY – SWEDEN.PPT 9