Repowering Wind Farms in Sweden – Securing Technical and Economical Sustainability

Wind turbines don’t last forever. In less than two decades, many of the wind farms established in Sweden will have reached the end of their technical and economical lifespan and will need to be replaced. However, several of them are built on prime wind sites and the power capacity and resource efficiency on these sites can be significantly increased through repowering. In this article, Tove Andersson, Jonathan Andersson and Sunniva Rosqvist of Setterwalls share their view on the main repowering and permitting options.

What is Repowering?
As there is no general definition of the term repowering, it is not completely clear which measures and processes are covered by the term. But in short, repowering can be explained as the process of renewing an aging wind farm, with the aim of maintaining or increasing the power capacity or efficiency of the farm.

Repowering can be accomplished in a number of different ways. One way is to extend the lifespan of wind turbines by replacing selected components. Another possibility is to replace the full fleet of wind turbines with new, more powerful and efficient ones. As new wind turbines allow for more capacity per turbine, a smaller number of new turbines can generate more power than a larger number of old turbines. Other repowering options could include inter alia re-location of the wind turbines, adjustments of the project area as well as upgrades of the wind farm’s infrastructure.

Permitting Options

New Environmental Permit
We often get questions about what happens when the environmental permit for a wind farm expires and if it is possible to prolong the validity period before this happens. The answer to the latter question is that no such possibility exists. In order to continue the operation of a wind farm after the environmental permit has expired, the operator must obtain a new environmental permit, as the Swedish Environmental Code does not allow for an extension of the permit’s validity period. A new environmental permit may also be required in other situations, for example if additional wind turbines are considered.

The process of applying for and obtaining a new environmental permit is complex and time-consuming. It entails consultations, investigations and an environmental impact assessment (EIA). A new permit also requires municipal approval. Certain more limited repowering options can be permitted after an application for an amended permit, or an application for altered permit conditions. In some cases, where the changes do not require a permit per se or constitute a significant inconvenience to people’s health and the environment, it may be enough to notify the supervisory authority of the planned changes.

Amended Permit
For minor and well-defined changes, an amended permit might be suitable. The Land and Environment Court at Nacka District Court recently rejected an application for an amended permit regarding increased height of turbines, due to the fact that the changes were so significant that they would result in a whole new operation. According to the court, the changes required a new permit. The judgement has been appealed to the Land and Environment Court of Appeal. Until the case has been finally decided, it is uncertain to what extent height changes can be granted through amended permits.

Alteration of Permit Conditions
A permit may include conditions that limit the maximum tower height, the rotor diameter etc. A condition may be altered or removed if it is obvious that it is no longer needed, more stringent than necessary or if the alteration of the condition is called for due to circumstances which were not foreseen when the permit was granted, but such alterations are permitted restrictively.

In the past, the Land and Environment Court of Appeal has stated that permission to change the height of existing wind turbines can be granted through a decision to alter a permit condition. However, in light of the latest case law developments, it is uncertain to what extent this statement still applies.

Notifications
For repowering smaller sites, a building permit and notification in accordance with the Swedish Environmental Code might be sufficient. An environmental notification is required for changes of operations that require notification for their permissibility, if the changes are of significance in terms of disturbance. In each case, contacts with the supervisory authority is highly recommended to find out their opinion on if the proposed handling is suitable or requires a notification or other actions.

Further Considerations
Besides various permitting options, there are a number of other things to take into account before a repowering process can be initiated. Examples include potential requirements for a building notification to the local building committee or for a demolition permit or notification for demolition work. Restrictions in zoning plans may need to be observed, and it may be necessary to review and amend existing land lease agreements.

An Example of Repowering in Sweden
Näsudden on Gotland is the site for one of the largest repowering projects in Sweden to date. Before the repowering process there began, Näsudden had more wind turbines than any other area in Sweden. There were different kinds of wind turbines and they were regulated by several different permits and notifications. Since the repowering process started, a more uniform wind farm has taken shape.

Initially, the widespread ownership of the old wind turbines presented a difficult challenge in the process, but the owners formed a company, which hired an external project manager to run the project and facilitate cooperation. The repowering project at Näsudden inter alia includes the sub areas Nya Näsudden Väst, Stugyl and Nya Gansparken, where 58 old wind turbines with an installed capacity of 150–600 kW were replaced by some 27 modern, larger wind turbines with a capacity of 2–3 MW. With the new turbines, the capacity increased from 50 GWh to 200 GWh/year. Thereby, despite reducing the number of wind turbines by half, the capacity four-doubled.

For the abovementioned sub areas, three new permits were granted.  The new permits regulate both dismantling of existing wind turbines, as well as construction of new wind turbines. However, it should be noted that permits normally cover the dismantling process. It is therefore often possible to handle the dismantling process with support of the old permit. Although, as noted above, a new permit is needed for the construction and operation of a new wind farm.

Concluding Remarks and timing issues according to EU
Those who wish to repower aging wind farms have various options to choose from. There are a number of important technical, legal and economic matters to consider before determining which repowering option to move forward with. For larger projects, it is often necessary to obtain a new or amended environmental permit. Smaller projects may only require a notification to the supervisory authority combined with a building permit. Contact with the supervisory authority should be initiated early in the process in order to determine whether or not the repowering process can be carried out as planned. It is also important to investigate whether there are any existing permits, agreements or municipal plans that impose restrictions which need to be taken in to account before the repowering process can begin. The repowering options hold great possibilities for securing not least technical and economical sustainability.

As the Näsudden permits are approximately ten years old, they don’t provide up-to-date guidance on all repowering issues. Neither does more recent case law from the Land and Environment Court of Appeal, as  no full-scale repowering proceedings have been subject to their judgement yet. It should be noted that the scope for a permit proceeding regarding a ”renewed” wind farm does not differ from the scope for a new greenfield operation, except to some extent when it comes to the requirements regarding the location of the operation.

In the current legal debate, the need to simplify the repowering process is often emphasised. This is the case not least in connection to the debate linked to the implementation of the revised Renewable Energy Directive (2018/2001/EU). The directive must be implemented by 30 June 2021. As regulated therein, EU member states must facilitate the repowering of existing renewable energy plants by ensuring a simplified and swift permit-granting process. The length of the process cannot exceed a year, with a possible one-year extension due to certain regulated circumstances. According to the Swedish Environmental Protection Agency, legislative changes are necessary in order for Sweden to comply with the directive. The Agency has recently (31 January 2020) proposed new regulations and it remains to be seen what Sweden’s final regulatory response to the directive will be. We will continue to follow the progress in the implementation process closely.

Setterwalls’ Team
Setterwalls’ specialist team in energy & commodities holds a market leading position in the Nordics and is top ranked by the major ranking institutes. Through our in-depth knowledge and experience of the energy industry, we have the commercial credibility to help our clients achieve their objectives and navigate the complex regulations that surround a repowering process, whether as part of a transaction or in regulatory proceedings.