Unveiling the future: Exploring Sweden’s opportunities to transition to an auction-based system for offshore wind.

Abstract

The energy transition to reduce greenhouse gas emissions and the Russian Federation’s war on Ukraine has incentivised targets of European independence in the energy market. Offshore wind is deemed an important energy source because technological advancements have made the sector cost-efficient while producing more capacity than before. Lower conflicts on the ocean allow for larger establishments with higher energy production. The Swedish scheme for offshore wind establishment impedes the possibility of the nation accelerating deployment. The Swedish scheme requires engagement with multiple regulatory bodies, and poses financial risks to developers, while legal unclarities for offshore wind deployment are present. Several Swedish agencies have posed suggestions to launch an auction-based system. This thesis aimed at providing knowledge about possible pathways to an auction-based system for offshore wind establishment in Sweden. Knowledge about necessary conditions, possibilities, and obstacles was studied through a literature review, focussing on the cases of Germany, Denmark, and Sweden. Reports from authorities and academic articles on the subject were examined. The study found potential inspirational sources that could be adapted if Sweden established an auction-based system. The findings included ensuring a seamless transition, ensuring competition, and drawing on transitions from other national sectors. These suggestions may support Sweden to better succeed in creating the right conditions for accelerating offshore wind deployment through an auction-based system.