Shares in Eolus Wind fell sharply on Tuesday after the Swedish government announced it would deny permits for two of the company's proposed wind farms.
The decision directly impacts the listed developer's pipeline, with one of the rejected projects having already secured an intention agreement with Volvo Cars to supply renewable energy.
"We regret the government's decision," Witalisson said in a statement, highlighting the setback for the company's growth strategy.
The market reaction was immediate, with investors pricing in the loss of future revenue streams and the potential delay of the company's expansion plans.
The rejection of the Volvo-linked project is particularly significant, as it removes a key anchor tenant that would have provided long-term visibility for the asset's cash flows.
Per Witalisson, CEO of Eolus Wind, expressed disappointment with the ruling.
"We regret the government's decision," Witalisson said in a statement, highlighting the setback for the company's growth strategy.