Vattenfall has reported a slight decline in underlying profit for its wind business in 2024, with a 10% decrease in underlying operating profit compared to the previous year. The company’s wind unit’s underlying profit stood at SEK 5.8 billion, down from SEK 6.5 billion in 2023.
The reduction in profit was attributed to lower electricity prices, increased costs, and higher depreciation, particularly from newly acquired assets. However, the decline was partially offset by increased energy volumes, higher subsidies for offshore wind farms in Germany, and certain availability warranty payments.
Electricity generation saw a notable 23% rise, mainly driven by the performance of the Hollandse Kust Zuid and Vesterhav offshore wind farms. Despite the increased generation, the company’s net sales fell by 15% year-over-year.
Across Vattenfall’s operations, the group’s full-year underlying operating profit remained largely unchanged from 2023, amounting to SEK 19.8 billion.
“The decline in profit for the wind business was influenced by several factors, but our focus on long-term growth through fossil-free energy projects remains a priority,” said the company in a statement.
Electricity prices in the Nordic region were notably lower in 2024, with an average drop of 36% compared to 2023, driven by strong hydrological conditions, increased wind production, and reduced continental prices. On the continent, electricity prices fell by 19%, due in part to lower gas prices and increased renewable energy capacity, although these prices were still nearly twice as high as those in the Nordics.
Looking ahead, Vattenfall has outlined plans to invest SEK 170 billion between 2025 and 2029. Over half of the investments (61%) will focus on growth, particularly in new fossil-free electricity generation projects. Notable upcoming projects include the Nordlicht 1&2 offshore wind farms in Germany and the Zeevonk project in the Netherlands, which integrates wind and solar power with hydrogen technology.
Vattenfall’s strategic emphasis remains on expanding its renewable energy portfolio as part of its commitment to sustainable energy production.
