Markbygden Wind Farm

The Markbygden Wind Farm is a series of interconnected wind farms in the Markbygden area west of Piteå, Norrbotten County in northern Sweden. Spanning 450 square kilometres and connected by a 700-kilometre road network, the project represents Europe's largest onshore wind development when fully completed.^[1] The wind farm could have a total capacity of up to 4,000 megawatts (MW), comprising up to 1,101 wind turbines, and is expected to generate up to 12 TWh annually, equivalent to approximately 8% of Sweden's total electricity consumption.^[2]

The project was initially co-developed by Svevind AB and wind turbine manufacturer Enercon. However, the wind farm complex has faced significant financial challenges since 2021, with the largest component, Markbygden Ett, accumulating losses exceeding €220 million and entering bankruptcy proceedings in 2024.^[3]

Markbygden Wind Farm is strategically located on a plateau between two river valleys, allowing maximum utilisation of the natural wind acceleration phenomenon over hills.^[4] The site benefits from wind speeds up to 40% higher than in surrounding river valleys, making it a uniquely suitable location for large-scale wind power generation in northern Sweden.^[5]

The project operates in Sweden's northern electricity price zone (SE1), which has a particularly high proportion of wind-generated electricity. This creates a market dynamic where abundant wind conditions can drive electricity prices down, sometimes to negative levels, while periods of low wind result in higher market prices.^[6]

The Markbygden development is divided into three major phases plus two pilot projects:

Phase 1 consists of multiple wind farms with a combined capacity of 969.87 MW.^[7] The centerpiece is Markbygden Ett (MBETT), featuring 179 wind turbines and representing one of the largest single onshore wind farms in Europe. The project received €800 million in funding from Macquarie Group's Green Investment Group and GE Energy Financial Services in 2017.^[8]

In 2018, China General Nuclear Corporation (CGN) acquired a 75% stake in Markbygden Ett as part of its European expansion strategy.^[9] All power from Phase 1 is transmitted via the Råbäcken transformer station to Sweden's 400kV national grid.

Phase 2 covers approximately 160 square kilometres in the westernmost part of the Markbygden area. As of 2024, 63 Enercon E-138 turbines with a total capacity of 252.7 MW are operational.^[10] Credit Suisse acquired an 85% stake in the northern project in 2020. The phase connects to the new Trolltjärn 400kV transformer station.

Phase 3 represents the largest component of the overall project, covering 150 square kilometres and designed for up to 442 wind turbines with a total capacity of 1,803.5 MW.^[11] The Önusberget component, featuring 137 GE Cypress 5.5MW turbines with 753.5 MW capacity, was acquired by German asset manager Luxcara in 2019. Amazon has signed a power purchase agreement for 258 MW of the phase's output.^[12]

Since 2021, Markbygden Ett has faced severe financial distress due to an unfavorable 19-year power purchase agreement (PPA) with Norwegian industrial group Norsk Hydro. The contract, signed in 2017 at approximately €25 per megawatt-hour, requires the wind farm to provide fixed electricity volumes regardless of wind conditions.^[13]

Between 2021 and 2024, Markbygden Ett accumulated losses of €220 million, with total debts reaching €530 million. The company entered formal reconstruction proceedings in late 2023 to avoid bankruptcy.^[14] The Swedish Tax Agency has opposed the reconstruction, arguing that the Chinese owner CGN should accept responsibility for the failed investment.^[15]

The project exemplifies broader challenges in the European wind energy sector, including:

• Cannibalization effects from high wind penetration causing price volatility
• Fixed-volume PPAs creating financial risk during low-wind periods
• Spot market exposure requiring expensive replacement power purchases
• Geopolitical impacts from the Ukraine conflict driving energy price inflation^[16]

The European Investment Bank provided €174 million in financing for the project, guaranteed by the European Fund for Strategic Investments, making it the largest creditor.^[17]

When fully operational, Markbygden Wind Farm is projected to reduce carbon dioxide emissions by 8 million tonnes annually compared to coal-fired electricity generation.^[18] The project operates in a subarctic climate requiring specialized lubrication systems for turbine components to maintain efficiency in extreme cold conditions.^[19]

The development represents a significant component of Sweden's renewable energy infrastructure, with wind power accounting for 31% of Sweden's electricity mix as of 2024, making Sweden the third-highest wind-dependent country in Europe after Denmark and Ireland.^[20]

As of 2024, approximately 498 turbines with 1,119.5 MW capacity are operational across the Markbygden complex. The project's completion timeline has been affected by the financial difficulties surrounding Markbygden Ett, though other phases continue to operate successfully under different ownership structures.

The case has become a cautionary example in the wind energy industry regarding PPA structuring and market risk management, influencing the development of more flexible contractual arrangements for future projects.^[21]

• Wind power in Sweden
• Renewable energy in Sweden
• Wind power

• Smart City Sweden: Markbygden 1101
• Green Investment Group: Markbygden project overview