Inside Wind Power’s Next Profitable Chapter

Unpredictable, unprofitable and unmanageable – or the leading energy source of tomorrow? Recent years have tested wind power at scale, exposing both its vulnerabilities and its potential. But are the tailwinds finally here to stay? In a unique agreement between Locus Energy, a portfolio company to SEB Nordic Energy, and energy tech company Flower, sector-defining risks such as imbalance costs and negative prices are being actively addressed. But how does it work – and what have the real-world outcomes of the partnership been?

In early 2025, a small wind power cooperative in Gävleborg, Sweden made the headlines as it was forced to pay over half a million in SEK to the TSO Svenska kraftnät, because of stronger-than-forecast winds. A penalty fee well over their monthly earnings, the small producer had to scramble to pay the bill, temporarily shutting down its turbines completely to not risk further overproduction – and more fees.

Stories like these became increasingly common in the past years, as imbalance costs, negative pricing and price cannibalization threatened to curb the growth of an entire industry. One critical reason behind the trend was clear: wind power operators typically lacked the advanced tools needed to optimize their production in an increasingly variable electricity system.

In Sweden, however, a shift has begun.

The independent power producer Locus Energy, has allowed a third-party optimizer to gain control of 11 of their wind farms in Sweden (180 GWh per year). With pioneering technology, Flower is helping Locus Energy accurately capture production at the right time and deliver it to the grid when it’s needed – reducing risks and costs while unlocking stable recurring revenue.

“Historically, wind power forecasting and trading has often been handled manually by traditional BRP providers. Today, trained algorithms manage this complexity instead.”

– Robin Klang, Head of Asset Management, Flower

Robin Klang, Flower, Head of Asset Management

A pioneering collaboration

In April 2025, the partnership between Flower and Locus Energy came into effect. According to Flower’s Head of Asset Management Robin Klang, with long experience within the wind industry, the idea of allowing a third-party actor to control, optimize and trade wind power this way was virtually unheard of in the market at the time.

“Historically, wind power forecasting and trading has often been handled manually by traditional BRP providers. But as the energy system becomes more variable and unpredictable, this approach exposes operators to significant risks – including imbalance costs and negative prices – when production is not accurately aligned with system needs. Today, trained algorithms manage this complexity instead, also ensuring that the power is traded with precision across wholesale and ancillary services markets to maximize revenue. This technology will be the backbone of tomorrow’s more profitable wind sector,” Robin Klang says.

“We can now improve our ability to manage risk, secure revenues, and operate our wind farms with greater flexibility and precision.”

– Mattias Söderqvist, Partner and Deputy CEO, Locus Energy

Stable revenue and reduced imbalance costs

Throughout the fall of 2025, and across Sweden, Flower began integrating Locus Energy’s wind farm assets into its portfolio. Leveraging its advanced algorithms, Flower effectively relieved Locus Energy from some of their most pressing costs and risks while providing steady revenues through a pay-as-produced PPA (Power Purchase Agreement) – a vital first step in Flower’s effort to revitalize the PPA model.

“The partnership with Flower became an important step in our strategy to future-proof our assets and maximize the value of the energy we produce. Through this setup, and our ability to make the assets technically ready, we have gained access to real-time control and optimization, improving our ability to manage risk, secure revenues, and operate our wind farms with greater flexibility and precision. This is exactly the type of solution needed to accelerate the energy transition in a sustainable and profitable way,” says Mattias Söderqvist, Partner and Deputy CEO at Locus Energy.

Advancements so far

With the majority of Locus Energy’s wind farms in Sweden already being controlled through Flower’s optimization software, tangible results are beginning to emerge. Most importantly, Locus Energy has avoided substantial imbalance costs since the optimization began. These costs are now covered by Flower and significantly reduced through advanced forecasting combined with a diversified portfolio largely consisting of risk-mitigating BESS assets.

Negative price curtailment, Locus Energy, Flower

Through Flower’s technology, wind production is automatically curtailed in the event of unprofitable or negative price periods.

In addition, Flower’s technology enables automatic curtailment during periods of unprofitable or negative prices. This proved particularly valuable on November 5, 2025, when spot prices in SE2 dropped below zero, as shown in the graph above. Through Flower’s curtailment, the affected wind farm’s production was swiftly reduced during the period, avoiding unnecessary losses.

Tailor-made wind power agreements

Flower is currently in the process of integrating more significant wind power assets into its large portfolio, trading on ancillary service markets and wholesale markets to maximize revenue. By offering wind farm owners the opportunity to enter a tailored BRP service agreement – choosing between full or partial imbalance hedging, revenue or profit sharing models, PPA offtake, or anything in between – Flower enables wind farm owners to unlock greater profitability and flexibility in their operation.

Are you a wind farm owner looking to reduce risks and improve earnings? Get in touch to learn how your assets can thrive in the wind sector’s next profitable chapter.

Locus Energy