Vattenfall continues to invest heavily in growth with a clear focus on renewable production, enabled by our successful efforts to reduce costs and achieve a stable capital structure.
Total investments in 2020 and 2021 are planned to SEK 58 billion, with growth investments accounting for almost 62% (SEK 35 billion). The investment strategy reflects our commitment to drive the transition to a fossil-free society.
Around SEK 25 billion of investments are planned for new wind farms, of which approximately SEK 17 billion are dedicated to offshore wind. SEK 9 billion pertains to the Kriegers Flak (605 MW) offshore wind project. The plan also includes expenditures formajor offshore projects that are planned to be completed further ahead in time, such as Hollandse Kust Zuid 1–4 (1,500 MW) in the Netherlands and Vesterhav Syd and Nord (350 MW) in Denmark. The biggest onshore projects are South Kyle (212 MW) in the UK and Wieringermeer (180 MW) and Wieringermeer Extension (118 MW) in the Netherlands.
Vattenfall is also investing around SEK 0.5 billion in solar and battery projects, including a major renewable energy park in Haringvliet, combining onshore wind (22 MW), large-scale solar (38 MW) and battery storage (12 MW). In addition, almost SEK 3 billion of investments will be made in new energy solutions – mainly distribution network solutions, decentralised heat solutions and e-mobility. New businesses also include initiatives like HYBRIT, a joint cooperation with SSAB and LKAB with the aim of developing a fossil-free steel manufacturing process.
Maintenance and replacement
Besides these growth activities, Vattenfall is planning significant investments in maintenance and replacement of the existing assets, amounting to around SEK 22 billion in 2020 and 2021. We are modernising the heat portfolio in line with our strategy to be fossil free within one generation. This comprises major replacements of heat assets, such as a new biofuelled combined heat and power (CHP) plant in Uppsala (112 MW heat) and a new gas-fired combined heat and power plant in Berlin Marzahn (260 MW electricity).
Vattenfall continues to invest in the electricity networks in Sweden and Berlin to secure the quality of supply and reinforce the network (SEK 9 billion included in maintenance and replacement investments). Further, we are securing the safe operation of our Swedish nuclear and hydro power plants (SEK 5 billion included in maintenance and replacement investments) by completing nuclear safety measures at Ringhals and Forsmark and upgrading our hydro power plants to maintain availability and dam safety.
Major investment projects – decided on and in progress
|Kriegers Flak||Denmark||Wind, offshore||605 MW||2022|
|Wieringermeer||The Netherlands||Wind, onshore||180 MW||2020|
|Wieringermeer Extension||The Netherlands||Wind, onshore||118 MW||2020|
|Moerdijk||The Netherlands||Wind, onshore||27 MW||2021|
|Haringvliet Renewable Park||The Netherlands||Wind onshore, solar, battery||72 MW||2020|
|Marzahn CHP||Germany||Gas||260 MWel||2020|
|Replacement Reuter C||Germany||Gas/electricity||240 MWth||2020|
|Uppsala Carpe Futurum||Sweden||Biofuel||112 MWth||2022|
|Amsterdam South Connection||The Netherlands||Heat network||n/a