Eolus and Hydro Rein have withdrawn their permit application for the 140MW Garpenberg wind farm in Sweden after Avesta municipal council voted to reject the plans.
The council’s decision effectively halts the project, as Swedish municipalities have the right to approve or reject wind farm developments before an environmental assessment is undertaken.
Eolus and Hydro Rein said they will now withdraw their application and pause the project pending the government’s forthcoming announcement on compensation for municipalities and local communities hosting wind power projects.
The companies said the withdrawal leaves open the option to resubmit the application at a later date if the policy framework changes.
The council vote was split, with the Moderates in favour of supporting the proposal, while the Social Democrats and Centre Party opposed it, citing the lack of clarity over the government’s compensation scheme.
Local officials said they could not approve the project until details on community and municipal payments for hosting wind farms are confirmed by the government.
Eolus and Hydro Rein added that they have already presented a model outlining potential community compensation through their Fornybar platform, details of which are available on their website.
The Garpenberg project was planned in the Avesta municipality in Dalarna County and would have delivered around 140MW of new renewable capacity.