Vattenfall to invest nearly EUR 2bn in wind, solar in 2017-18

Swedish state-owned utility Vattenfall AB plans on- and offshore wind investments in 2017-2018 of SEK 17 billion (USD 1.9bn/EUR 1.77bn), and a “tangible increase” in solar investments to about SEK 2 billion.

The company said today it intends to make SEK 28 billion in growth investments this and next year, mainly in wind, solar and electricity distribution.

Vattenfall’s goal is to grow in line with the trend towards a more sustainable energy system with more fossil-free generation, combining efficient large-scale production with decentralised solutions. It aims at climate neutrality and a sustainable energy system by 2050 and so it will grow its wind and solar businesses, decentralised solutions, district heating and electricity retail operations. At the same time, Vattenfall will keep and optimise businesses that support the transformation of the energy market, such as its hydro, nuclear and gas-related assets.

Last year, the Swedish utility divested its lignite operations in Germany, cutting fossil-based production to 25% from about 50% in 2015. After the divestment the share of wind in Vattenfall’s production mix was 5%, of biomass and waste 1%, of hydro 34%, and of nuclear power 36%.

In its sustainability report for 2016 the company says the lignite and hard coal-based businesses are regarded as non-core and will be either phased out or converted to biomass.

(SEK 10 = USD 1.13/EUR 1.04)

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