Wind power could soon replace gas and coal energy in Scandinavia
Wind energy may be having a major impact on the Scandinavian energy structure. Coal and gas have been the most prominent forms of energy among the Nordic countries for years, but these countries have begun investing heavily in clean energy, with a particular interest in wind power. In recent years, the role of fossil-fuels has changed in Scandinavia, with coal and gas power plants in Finland and Denmark providing swing energy to Norway and Sweden when the hydropower systems of these countries cannot produce enough electrical power.
Utilities are seeing the rapid decrease in demand for coal-based electrical power
As the wind energy capacity of these countries continues to grow, the need for fossil-fuels is falling. According to Fortum, a Finnish utility, the demand for coal-based energy is falling dramatically. The utility has experienced a $31 million impairment loss related to this drop in demand and various other economic issues. The utility has also noted that the wholesale price for electricity has fallen dramatically over the past four years.
Governments are taking steps to increase their wind energy capacity and reduce their reliance on coal
Government initiatives are also part of the reason why the demand for coal and gas is falling. Denmark has plans to completely phase out all coal energy production by 2030, with all of the country’s electrical power and heat coming from renewable sources by 2035. Sweden plans to aggressively increase its wind energy capacity in the coming years and Norway has changed its tax laws to make it a more attractive home for wind projects of various sizes.
Wind power could have significant economic promise among Nordic countries
Wind power holds a great deal of promise in the Nordic countries. These countries believe that new wind projects will generate strong economic activity that will be beneficial for consumers and businesses, as well as governments. Offshore wind power, in particular, has been receiving stronger support this year as Nordic countries begin to tap into the wind resources they can find at sea.