Renewable energy developers Eolus and Hydro Rein have withdrawn their permit application for the planned 140-megawatt Garpenberg wind farm in central Sweden after the Avesta municipal council voted to reject the project.
The decision effectively halts the development, as Swedish municipalities hold the authority to approve or deny wind projects before environmental assessments proceed.
In a joint statement, the companies said they will pause the project and await further clarity from the government on its proposed compensation scheme for municipalities and local communities that host wind power infrastructure.
“We respect the municipality’s decision and are therefore withdrawing our application. We are now awaiting the government’s upcoming announcement on compensation to municipalities and local communities before proceeding,” Eolus and Hydro Rein said.
The developers added that the decision does not rule out the possibility of resubmitting the application at a later stage if the national policy framework changes.
The Avesta council vote was divided, with the Moderates voting in favour of the wind farm, while the Social Democrats and Centre Party opposed it. Opponents cited the absence of concrete guidelines on financial compensation from the state to local areas impacted by wind development.
Local officials stated they were unable to approve the project without clear direction on municipal and community-level payments.
Eolus and Hydro Rein noted they had already presented a compensation model for local communities via their “Fornybar” platform, with additional information available on their website.
The Garpenberg wind project, located in Dalarna County, was expected to add approximately 140MW of renewable capacity to Sweden’s electricity grid.
