Sweden, known for its long dark winters with barely any daylight, is experiencing a solar power boom.
Harnessing sunshine has emerged as the quickest solution to fill part of the void left by the closure of two nuclear reactors in southern Sweden, where the biggest cities and industries are located.
With shortages piling up in the region and consumers keen to secure green energy at stable prices, solar power is quickly catching up with wind as developers put panels on rooftops and underutilised land in populated areas.
While the lack of winter sunlight is a hindrance, every bit of new electricity capacity will lower imports from Europe, where prices are more than three times higher than in the rest of Sweden.
Projects are built quickly because developers are getting directly into power sales deals with consumers and are not dependent on government support, said Harald Overholm, chief executive of Alight, which started Sweden’s biggest solar plant this month.
Companies are looking for a fast start, pushing total capacity in the country to 2 gigawatts this year.
That is more than the two nuclear reactors in Ringhals that were halted in 2020, and will close the gap with Denmark, an early mover in the industry in the region.
“We are very good at creating contracts directly with commercial partners that use power, and that is what drives our development,” Mr Overholm said.
The past winter has demonstrated the hole left by the two atomic reactors, with the government facing the task of reconciling a divergent market.
While vast hydro and wind projects have kept the cost of electricity in the sparsely populated north in check, a lack of generating capacity and congested grids have forced the south at times to import power.
The south is home to heavy users such as SSAB's steel plant and Stora Enso Oyj’s paper and pulp mills. But the demand and the higher power prices in the region have not been enough to overcome the permitting process for new wind power and expansion of the grid.
Municipalities and households remain sceptical of large turbines and very visible energy infrastructure in densely populated areas.
Solar developers are not faced with the same issue.
Most of the bigger projects also secure long-term sale deals directly with customers that are enough to break even without government subsidies. Buyers are left less exposed to a very volatile market.
“Solar is twice as popular in Sweden as wind in opinion polls,” Mr Overholm said. “It does not disturb, it creates more biodiversity, it does not exclude other uses of the land in the long term, no change of the view of the horizon, we don’t create any sounds, there are few thing to oppose.”
Alight started the 18-megawatt project in Skurup this month that will sell its output to a restaurant service company. It followed a similar deal with Swedbank for another site in Linkoping.
Solar energy shines in Mena region - in pictures
The company plans to build at least another 600 megawatt of capacity in southern Sweden in the next two years.
Others such as Helios Nordic Energy, OX2 and European Energy are also planning new capacity.
But companies face a major challenge — a lack of sunshine. During the darkest month of December, southern Sweden gets only about half of the sun-hours that Munich does or about a quarter compared with Madrid.
It means a megawatt capacity of solar in the country can churn out just about 14 per cent as much electricity as a megawatt of nuclear capacity running around the clock during those long dark winters when electricity demand reaches a peak.
The challenge has meant the Nordic region’s solar industry is still far behind other European heavyweights, with Germany at 55 gigawatts and Spain’s 16 gigawatts, Bloomberg NEF data show.
Even though the added capacity is unable to fully replace the closed reactors, it will push down prices in southern Sweden, according to Christian Holtz, a energy markets consultant with Merlin & Metis in Stockholm.
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Most%20ODI%20hundreds
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Women%E2%80%99s%20T20%20World%20Cup%20Qualifier
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Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Oppenheimer
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.