The Kvismardalens vind wind power cooperative in Odensbacken, Sweden, is facing potential shutdown after an EU regulation change has dramatically increased its operating costs. According to SVT Örebro, the cooperative's annual fees to energy company Eon have surged from 46,000 kronor to over 400,000 kronor - an increase of more than 700 percent.
The cooperative, which has approximately 400 private shareholders and operates three wind turbines in Odensbacken, must now decide whether to continue operating at a loss or shut down entirely. Chairman Stefan Josefsson stated, "Then we won't get any income either," highlighting the difficult choice facing the organization.
The fee increase stems from an EU regulation that ended subsidies for small-scale power producers. In March 2024, Eon and several other Swedish grid companies received injunctions from the Swedish Energy Markets Inspectorate (Energimarknadsinspektionen) prohibiting them from continuing to subsidize small-scale producers.
Gustav Wengen of Eon energy distribution explained that the company is no longer allowed to subsidize these small-scale producers due to the EU regulation. The cooperative's three wind turbines - two with 800 kilowatt capacity and one with 850 kilowatt capacity - now face significantly higher power capacity fees when delivering electricity to the grid.
The cooperative will hold a membership meeting to decide whether to sell the operation or continue with poor profitability. Josefsson noted that with the increased costs, it will be difficult to have sufficient funds left for service and maintenance of the wind turbines, and any potential profit would be very small.