Swedish government's grant for 90 MW offshore wind plant at Utgrunden II

Sweden's energy agency has granted SEK 70 million (EUR 7.6 million) for a 90 MW project at Utgrunden II in the Kalmar Sound being developed by Airicole, now owned by utility Sydkraft. The grant is part of SEK 350 million which has been set aside by government to be allocated before 2007 to wind power pilot projects both offshore and in mountainous regions. This replaces the previous system of capital subsidies. But with the ongoing uncertainty over the permanence of Sweden's market for green certificates system, financing remains problematic, says Airicole's Göran Dalen. "At the moment we cannot look beyond 2010 -- nor can prospective investors." Construction is expected to go ahead in 2007.