Lillgrund, by far Sweden's largest offshore plant to date, has been in planning since 1997. Vattenfall received permits for the project in 2004. The company has estimated that production from the offshore power station will add about SEK 65 million [EUR 7 million] to its coffers annually from green certificate income, as well an extra SEK 8 million (EUR 865,000] from the country's SEK 120/MWh green power bonus awarded to offshore wind until 2026. In addition, Vattenfall received a SEK 200 million (EUR 21 million) capital grant from the state to help offset costs at the SEK 1.8 billion (EUR 195 million) project.
Twelve of the 48 Siemens 2.3 MW turbines being installed off the southwest coast of Sweden at Lillgrund started supplying power to the grid last month, says utility owner Vattenfall. The remaining turbines, according to the company, should be in place by late fall and all 110 MW of capacity ready to start generating electricity by early 2008.