Additional Grid-E Aspects

• Svenska kraftnät
• Energy Authority
• Energy Markets Inspectorate

Number of DSOs: 170 Number of legally unbundled DSOs: 6 Source: 2020 DSO facts and figures Eurelectric; Distribution System Operator Observatory 2020, E-mail from Energy Market Inspectorate 2024-11-07.

Smart meter penetration rate 

100% Source: 2020 DSO facts and figures Eurelectric

Policies for the digitalisation of the electricity grid

- New regulations from the Energy Market Inspectorate on the measurement of electricity: Energy Market Inspectorate's regulations and general advice on measurement, calculation, and reporting of transmitted electricity 2024:3. The regulations set out the rules for measurement, calculation and reporting of the transmitted electricity that a grid company carries out according to ch. 6 Sections 1 and 3 of the Electricity Act (1997:857). According to this chapter in The Electricity law, a grid company must measure and record the amount of electricity transmitted. A grid company must as well, at the request of an electricity producer, report the results of the measurements made according to § 1 to a company appointed by the electricity producer.

The Energy Market Inspectorate's regulations and general advice EIFS 2022:5 on the obligation to report data on the development of smart grids: Grid companies must report data for monitoring the development of smart grids in accordance with Article 59.1 l of Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU and Section 34 of the regulation (2022:585) on electricity grid operations.

-Role of ESCOs, aggregators etc.

In June 2023, new rules for aggregators were introduced into national legislation. The new rules mean that the role of supplier of aggregation services has been introduced into the Electricity Act. Aggregation is defined in the Electricity Act as an amalgamation of the consumption of several electricity users or the amalgamation of produced electricity for sale, procurement or auctioning on electricity markets. Aggregation service is defined as a service that requires aggregation. A provider of aggregation services must not be prevented by other market participants from having access to the electricity markets. An electricity supplier may not charge unreasonable fees or make unreasonable demands on an electricity user because the electricity user has a contract for the provision of an aggregation service.

In the Electricity Act there is a rule for balance responsibility which states that a provider of aggregation services may provide such services in a delivery point only if someone has undertaken a balance responsibility in the point that specifically refers to the imbalances that the services may entail.

Specific rules for islands, isolated grids, microgrids, local grids, etc.

There are no specific rules on this topic.

Total number of active electricity nationwide suppliers: 70 Switching rates for electricity household customers in 2023: 10,26% Source: Ei R2024:11 Sweden's electricity and natural gas market in 2023.

How does the tariff methodology account for the deployment of RES? 

If, according to an agreement with a grid company, the state has financed measures that are necessary to increase the capacity of the electricity grid to facilitate the connection of facilities for the production of renewable electricity, the fee for connection must be designed so that the one who wants to connect a facility reimburses the network company's costs for such measures in the part that corresponds to the facility's share of the total capacity increase. This also applies if the grid concession is transferred. Law (2022:596).

For wind offshore electricity generation Svenska kraftnät has been investigating since January 2021 the expanding the transmission network at sea in areas within Sweden's territorial waters where there are conditions for connecting several electricity production facilities. The assignment aimed to reduce the connection cost for offshore wind power and thereby strengthen the economic viability of the power type in Sweden. However, the new Government elected in 2022 communicated via the Tidö Agreement, that connection costs for offshore wind power must be paid entirely by the wind power companies themselves. Due to the new directive, Svenska kraftnät has cancelled all preliminary investigations linked to offshore grid expansion under its own auspices. The work to adapt and further develop the process for connecting offshore wind power to the onshore transmission network is, however, progressing at an unchanged pace. In October 2023 Svenska kraftnät  published the progress report "New connection process for offshore wind power - progress report", 2023-10-13.

How does the tariff methodology adapt to islands, microgrids, local grids, etc.?

The tariff methodology does not differ on islands, microgrids, local grids, etc.

Are any policies being produced to account for such developments? 

There currently no policies being produced.

Changes in electricity price/tariff

The Energy Markets Inspectorate (Ei) has decided that all electricity grid companies must introduce a new price model that includes, among other things, an impact fee. Ei's regulations on the price model entered into force in 2022 and must be used no later than January 1, 2027. Until 2027, each electricity network company has the opportunity to test how to design the details of the model and gradually make changes to its tariff. From 1 January 2027, however, the electricity grid tariff must be designed according to the requirements set out in the regulation (The Energy Market Inspectorate's regulations and general advice for the design of grid tariffs for efficient use of the electricity grid).

The purpose of grid tariffs is twofold. They must partly be cost-reflective and thus give users incentives to use the network efficiently, and partly they must provide the network company with cost coverage. Therefore, the new grid tariff must consist of a number of different components, where the components fulfil different purposes: a fixed fee, a customer-specific fee, an energy fee, and an effect fee. 

Are there existing caps for RES installed capacity in the network?

There are no caps set in legislation. However, there is a lack of capacity on the grid. For example, in July 2020 Svenska kraftnät announced to Ellevio (DSO) that they cannot accept more large-scale electricity production in Värmland. This primarily concerns wind and solar parks. The reason is that transmission network in the area has reached its maximum capacity, and reinforcements will not be in place until 2030 at the earliest, according to Svenska kraftnät (Ellevio | Stopp för ny vind- och solkraft i värmländska elnätet).

What are the curtailment rules for RES generation? 

Curtailment rules are the same for all types of electricity generation. According to Electricity Act Ch. 8, § 1, to the extent necessary for the system responsible authority (Svenska kraftnät) to be able to exercise overall system responsibility, the authority may order
 1. balance responsible to increase or decrease the production or consumption of electricity, and
 2. electricity producers to increase or decrease the production of electricity.

Anyone who must increase or decrease the production or consumption of electricity has the right to receive market-based compensation from the authority responsible for the system.

Ordinance (1994:1806) on system responsibility for electricity specify one rule for RES generation: 
If Svenska kraftnät, in order to be able to exercise system responsibility, takes significant measures to reduce the share of electricity from renewable energy sources, Svenska kraftnät must report these measures to the Energy Market Inspection. The report must also state which remedial measures Svenska kraftnät intends to take to prevent the share of electricity from renewable energy sources from being reduced more than is appropriate. The following is specified for RES generation

Who is responsible for voltage balancing, frequency reserve, unit dispatching, electrical system management? 

Svenska kraftnät is the system responsible authority according to Ch. 8. § 1 Electricity Act (1997:857) which means that it has the overall responsibility for ensuring that electrical facilities work together reliably so that a balance within all or parts of the country is maintained in the short term between the production and consumption of electricity.

In order to maintain a high security of supply, a new future-proof balancing model is being developed for the entire Nordic region. The work takes place in a joint Nordic project, the Nordic Balancing Model (NBM), together with the Nordic transmission system operators. The purpose of the NBM is to future-proof balancing that both enables the energy transition and is at the same time adapted to Europe's common legislation and internal market for electricity. https://www.svk.se/utveckling-av-kraftsystemet/systemansvar--elmarknad/ny-nordisk-balanseringsmodell-nbm/ During the winter, Svenska kraftnät carried out simulations of the planned system and according to a compilation of the results made by Dagens Nyheter shows electricity price increases in all Swedish electricity areas. On average, almost a ten percent increase between the period December 2022 (week 50) and September 2023 (week 38)

* Electricity area 1: 12.1 percent.

* Electricity area 2: 7.1 percent.

* Electricity area 3: 17.5 percent.

* Electricity area 4: 3.2 percent.

This new model will cost Swedish electricity consumers approximately SEK 200 million a week, according to electricity market analyst Mats Nilsson to TN. (https://www.tn.se/naringsliv/32960/nya-elprisokningen-svenska-konsumenter-far-betala-200-miljoner-i-veckan/)