MARITIME LEGAL UPDATE
– AUGUST 2026
Sweden Between
National Security and the Energy Transition – New Boundaries for Offshore Wind
Development in the Baltic Sea
Law Firm Note
Marek Czernis & Co. Law Office has
extensive experience advising developers, investors, shipyards, offshore
contractors, port operators, financial institutions and energy companies
involved in offshore wind projects across the Baltic Sea and the North Sea.
Our practice covers the negotiation and
drafting of EPC contracts, offshore construction agreements, shipbuilding
contracts for installation and service vessels, project finance, administrative
and environmental permitting, and dispute resolution arising from offshore
energy projects.
Recent developments demonstrate that
governmental decisions concerning offshore wind projects are no longer driven
solely by environmental and economic considerations. National security has
become an equally important element of the permitting process. Against the
backdrop of an increasingly unstable geopolitical environment in the Baltic Sea
region, offshore energy infrastructure is now regarded as a component of
critical national infrastructure and defence policy.
Introduction
For many years, the principal criteria
governing the approval of offshore wind projects were: environmental impact; navigational
safety; compliance with maritime spatial planning; technical feasibility; and commercial
viability.
Today, an additional and increasingly decisive
factor has emerged: national security.
The Swedish Government’s decisions announced in
July 2026 illustrate this shift particularly clearly. While approving two
offshore wind projects, the Government simultaneously rejected eleven others on
the grounds that their locations could adversely affect Sweden’s defence
capabilities. These decisions send a clear message to offshore developers
throughout the Baltic Sea region: military and security considerations now
stand alongside environmental protection and energy policy as determining
factors in offshore project approval.
Background
The Swedish Government decided to: approve the
Fyrskeppet Offshore and Vidar offshore wind projects; and reject
eleven additional offshore wind farm applications, concluding that their
proposed locations could interfere with Sweden’s defence capabilities,
including military radar systems, surveillance infrastructure and operational
activities of the Swedish Armed Forces.
Despite receiving governmental approval for the
Vidar project, Vattenfall subsequently announced that it would not
proceed with development at the present time, citing insufficient commercial
viability under current market conditions. The company indicated that the
project may be reconsidered in the future should market conditions and the
regulatory support framework become more favourable.
These developments demonstrate that obtaining
all necessary governmental approvals does not automatically guarantee project
implementation. Commercial feasibility, financing conditions and long-term
market stability remain equally decisive.
National Security as a
New Permitting Criterion
Only a few years ago, defence considerations
played a relatively limited role in offshore wind permitting.
That position has changed fundamentally.
Following Russia’s invasion of Ukraine,
increased military activity in the Baltic Sea and repeated incidents affecting
critical infrastructure, governments throughout Northern Europe have begun
treating offshore wind infrastructure as an integral part of national security
policy.
As a consequence, offshore projects are now
assessed not only from an environmental perspective but also in relation to
their potential impact on: military radar systems; air surveillance
capabilities; electronic intelligence operations; naval manoeuvres; military
training areas; protection of critical infrastructure; maritime security; and national
resilience.
Developers must therefore engage with defence
authorities at a much earlier stage of project planning than was previously
required.
Implications for the
Offshore Industry
The Swedish decisions have consequences
extending well beyond Sweden itself.
They are likely to influence: project
development strategies; site selection processes; financing structures; lenders’
risk assessments; insurance underwriting; EPC contracting strategies; shipbuilding
orders for offshore installation vessels; supply chain planning; and long-term
investment decisions.
Increasingly, offshore developers will need to
conduct parallel consultations not only with environmental regulators but also
with ministries of defence, military authorities and agencies responsible for
protecting critical infrastructure.
Contractual
Consequences
The changing regulatory landscape is also
likely to affect contractual risk allocation.
Greater attention should now be given to
provisions dealing with: permitting obligations; regulatory approvals; changes
in law; governmental intervention; force majeure; termination rights; extensions
of time; allocation of regulatory risk; and cooperation obligations between the
parties.
Developers, contractors and financiers will
increasingly negotiate which party should bear the consequences of delays or
refusals arising from national security considerations.
Significance for
Poland
The Swedish decisions are also highly relevant
for offshore wind development in Poland.
The Baltic Sea constitutes a shared operational
area for NATO member states, while offshore energy infrastructure is being
developed simultaneously with significant investments in military capabilities
and critical infrastructure protection.
It is therefore reasonable to expect that
future Polish offshore projects will also be assessed in light of their
potential impact on: operational capabilities of the Polish Armed Forces; radar
and surveillance systems; protection of critical infrastructure; security of
submarine cables and pipelines; military navigation; and broader maritime
security.
Consequently, permitting procedures may
increasingly require close cooperation with national defence authorities
alongside the traditional environmental and maritime regulators.
Law Firm Conclusions
The Swedish Government’s recent decisions
demonstrate that offshore wind development in Europe has entered a new
regulatory phase.
Project success will no longer depend solely
upon environmental compliance, technical feasibility and commercial viability.
National security considerations have become an essential component of the
investment approval process.
From the perspective of offshore developers and
investors, this requires: earlier identification of regulatory and geopolitical
risks; continuous dialogue with defence authorities; careful contractual
allocation of national security risks; realistic scheduling of permitting
procedures; and greater flexibility in project financing and implementation
strategies.
For the offshore industry as a whole, Sweden’s
decisions represent an important reminder that the future development of
offshore wind in the Baltic Sea will increasingly depend upon balancing the
objectives of the energy transition with the strategic security interests of
the states bordering the region.