Sweden and Finland Hit Green Energy Milestone

Wind farms across Sweden and Finland have become so successful at generating clean electricity that they've driven wholesale prices down to historic lows, creating an unexpected challenge for the renewable energy industry.

Sweden's average annual wholesale electricity price dropped to just 16-60 euros per megawatt hour, while Finland hit 41 euros. These represent the lowest prices the region has seen since before the recent energy crisis, a direct result of the massive wind power expansion across both countries.

The boom has been remarkable. Wind and solar generation now account for 26% of Sweden's total electricity production. Finland alone built 1.1 gigawatts of new wind capacity last year, flooding the market with affordable clean energy for consumers and businesses.

However, the sudden abundance has created financial pressure on wind farm operators. Companies like Aldermyrberget and Kalix Wind in Sweden filed for bankruptcy in 2025, unable to sustain operations at the new low price points. Finnish developers have paused all new construction for this year, and Estonian company Enefit sold its 72-megawatt Finnish plant in December.

The challenge stems partly from reduced state support programs across Scandinavia. As governments scale back subsidies, renewable energy companies must compete purely on market terms. Many are now seeking large corporate contracts to maintain financial stability.

The Bright Side

This growing pain signals a major transition moment for clean energy. The abundance of renewable power has made electricity more affordable for millions of households and businesses across Scandinavia. Consumers are benefiting from historically low energy costs while enjoying cleaner air and reduced carbon emissions.

The industry is adapting quickly. Despite minimal activity in previous quarters, Sweden saw new turbine orders emerge in the third quarter of 2025, totaling 25 megawatts. Market analysts view this as an early positive signal that the sector is finding its footing at the new price levels.

The challenge now is refining the business model to make renewable energy profitable without heavy subsidies, a problem many experts consider solvable. Success here could provide a blueprint for other regions transitioning to clean energy, showing how to balance environmental benefits with economic sustainability.

Sweden and Finland have proven renewables can generate power at scale; now they're pioneering how to make that abundance economically sustainable for everyone involved.