Policies in Sweden

Sweden does not have a national 2030 target for renewable energy, but it has set a target of reaching 100% fossil free electricity production by 2040. The share of renewable energy in relation to energy use is increasing i the base scenario from 66 percent in 2022 to 67 percent in 2030. The proportion is then assessed to continue increasing to 76 percent in 2040 i the scenario (Sweden’s National Climate Plan, 2024-06-27). Onshore and offshore wind are rapidly expanding RES-E technologies in Sweden, regardless of the fact that they face significant obstacles in the permitting process. Most prominently, there are conflicts of interest between wind power developers, the Swedish Armed Forces, and municipalities, which have the right to veto a wind power project. In addition to these challenges imposed on onshore wind, offshore wind development is further complicated by the numerous authorities involved in the various permitting procedures, the staff of which may be inexperienced by the relatively novel offshore technology.
The amount of small and medium-sized heat pumps has expanded rapidly in Sweden: 60% of Sweden’s detached houses had a heat pump installed year 2019. Ground-sourced (geothermal) heat pumps are one of the most common heat pump types in the country, and as ground-sourced heat pumps often require some sort of permitting or at least registration procedure, they are the heat pump technology covered in this section. The permitting is rather uncomplicated and quick, which may constitute a reason why heat pumps have gained popularity quickly in Sweden. For air heat pumps there is currently no requirement for registration or permission. Local municipalities handle registration process.

1. Site selection
2. Administrative authorisation
3. Grid connection permit
4. Other (only relevant for wind onshore and wind offshore)

● Swedish Armed Forces/Ministry of Defence
● Municipalities, municipal building committees
● County Administrative Board
● Swedish Energy Agency
● Land and Environmental Court
● Geological Survey of Sweden
● Swedish Energy Markets Inspectorate
● Ministry of Enterprise and Innovation
● Ministry of the Environment

The Act on District Heating (2008:263) establishes rules for the operation of district heating networks, for example, public access to the pricing information and information on energy performance and the share of renewable energy in the company's district heating system and measurement of energy for district heating customers. It also sets out provisions on the connection of heating plants to the heating network. According to the Act, district heating activity means the distribution in pipelines of hot water or other heat carrier for heating, if an unspecified group within a certain geographical area may be connected to the activity.

A district heating operation also includes the production and sale of the heat distributed in the pipelines if the person conducting the distribution also produces and sells the heat. A district heating company is a legal entity that conducts district heating operations.

The Energy Market Inspectorate is a supervisory authority according to the District Heating Act (2008:263). Ordinance (2022:337). The District Heating Board at the Swedish Energy Agency must fulfil the tasks assigned to the authority that mediates according to the District Heating Act (2008:263). Ordinance (2022:337). The Swedish Energy Agency proposes the closure of the District Heating Board as a result of the work of evaluating the District Heating Board (2024-09-02).

Act on District Cooling (2022:332) establishes rules for the operation of district cooling networks. District cooling company: a company that conducts district cooling operations. District cooling operations are:

● distribution in pipelines of cold water or another carrier of heat energy for cooling, if an indefinite group of receivers within a certain geographical area may be connected to the operation, and

● production and sale of the district cooling distributed in the pipelines, if the distributor carries out the production and sales.

The Energy Market Inspectorate is a supervisory authority according to the District Cooling Act (2022:332).

If a district heating company receives a request for access to the pipelines from someone who wants to sell heat to the district heating business or use the lines for the distribution of heat, the district heating company must negotiate access with the company who made the request. The obligation to negotiate means that the district heating company must try to agree on access with the person who requested it. If no agreement can be reached regarding access, the district heating company must state the reasons why access is not granted.

If a company who wants to sell heat to the district heating business has requested access to pipelines in accordance with § 37 and an agreement cannot be reached, the district heating company must allow regulated access to the pipelines if the person who requested access requests it.

The obligation to allow regulated access only applies to primary heat on the supply line and only if the facility to be connected is not already or has been connected for input to the district heating company's pipelines.

The company that has requested access to the pipelines must pay the investment cost for the connection.

The district heating company must receive heat to a reasonable extent from whoever is given access to the pipelines and pay compensation for the heat input. The compensation must correspond to the district heating company's benefit from the heat.

The agreement on regulated access shall be valid for 10 years (§ 37c Act 2008:263).

In order to promote the expansion of district heating, grants, if there are funds for this, may be provided in accordance with this regulation. Grants may only be provided for measures that lead to electrically heated buildings being connected to district heating or that lead to a not inconsiderable increase in cogeneration utilisation. Contributions are made to the district heating supplier who carries out or has the expansion carried out. The Ordinance (1999:1383) on government subsidy for expansion of the district heating network establishes the rules for the subsidies.

● Swedish Energy Agency ● Swedenergy

Grid ownership
Transmission network: a technically and operationally connected network with a voltage of 220 kilovolts or more that stretches across several grid regions in Sweden and links the national electricity network with electricity grids in other countries. 
Transmission network company: a network company that owns a line that is part of a transmission network (Electricity Act). Svenska kraftnät is the network owner for Sweden's transmission network (according to Svenska kraftnät’s webpage). 
Regional network: a line or a network of lines that is not part of a transmission network and which is covered by a network concession for a line or for an area with a minimum permitted voltage. Local network: a network covered by a network concession for an area without a minimum permitted voltage. Distribution network company: a network company that owns a local network or a regional network (Electricity Act).

Island interconnection

The legislation does not distinguish islands from the mainland. Islands, facilities on islands, and customers on islands may obtain a connection to the grid. Upon such a request, the DSO is obligated to establish a connection. In some cases, private islands have been given the right to run their own grid with their own generators.

Island TSOs and DSOs

The legislation does not distinguish islands from the mainland. According to Energy Market Inspectorate’s report Ei R2022:11 Security of supply in Sweden's electricity grid 2021, Svenska kraftnät is the only TSO in Sweden.

Development of electricity grids for RES integration
Svenska kraftnät shall, among others, within its area of operation, ensure that the opportunities to expand fossil-free electricity production and new areas of use for electricity are taken advantage of in the conversion of the electricity system. Also, within its area of operation, Svenska kraftnät works to ensure that the energy policy goals approved by the Parliament are achieved. Svenska kraftnät has previously worked on the expansion of the transmission network to areas within Sweden's territorial waters where there are conditions for connecting several electricity production facilities and where such an expansion promotes the fulfilment of Sweden's goals for renewable electricity production. But according to the Amendment to the regulation (2007:1119) with instructions from the Swedish Power Grid Agency, Svenska kraftnät will no longer specifically be tasked with expanding the transmission network to areas within Sweden's territorial waters. The principle that whoever connects to the electricity grid must be responsible for the costs caused by the connection must also be maintained at sea. Ordinance amending the Ordinance (2007:1119) with instructions for the Affärsverket Svenska kraftnät was issued on the 12th of October 2023.

Specifications for islands, isolated grids, microgrids, local grids, etc.
There are regulations on island operation from Svenska kraftnät. Island operation is a preparedness measure and means operation of production facilities, stations and electrical network in subsystems to supply an area or a business with electric power (The Swedish Power Agency's regulations and general advice on electricity preparedness).
According to Svenska kraftnät ’s booklet: Island operation, to ensure electricity supply in crisis situations, island operation means that electricity production facilities together with electricity users are operated in a geographically demarcated electrical network, without connection to the surrounding network. This is achieved by disconnecting it from the national transmission grid and instead balancing electricity production and electricity consumption entirely within the so-called island network. A basic prerequisite for island operation is that there is at least one local production facility. Island operation is used in crisis situations when extensive disruptions and network breakdowns.

Rules concerning the connection of a new producer to the grid

The local grid operator is statutorily obliged to connect electricity-generating plants and installations to the grid. RES is not given priority.

Electricity Act, chapter 4:
The holder of a network concession must, on objective, non-discriminatory and otherwise reasonable terms, connect an electrical installation to the line or the line network, if the holder of the electrical installation requests that it be connected. In the case of local networks, the obligation to connect only applies to facilities within the concession area. Law (2022:596).
Derogations from the obligation according to § 1 may be made if
 1. there is a lack of available capacity, and there are no conditions to remedy the lack of capacity in a way that is economically justified without strengthening the management or the management network, or
 2. there are other special reasons.
A network company that has refused to connect a facility to a line or a network of lines because of a lack of capacity must, against reasonable compensation, provide the one who requests it with information on what measures are required for the connection to be carried out.

If someone wants to connect an electrical installation to a regional or transmission network instead of to the local network, the holder of the regional or transmission network may connect the installation only if 
 1. the owner of the local network has agreed to it, or
 2. the network authority (Energy Market Inspectorate) has granted permission for the connection following application by the holder of the regional or transmission grid. Law (2022:596). The network authority may grant such a permit only if there are special reasons. Law (2022:596).
A network company must carry out the connection within a reasonable time from the time it receives a request for connection.
The fee for connecting to a line or a network of lines must be designed to cover the network concession holder's reasonable costs for the connection.

Rules for connecting RES and storage to the grid
For the facilities with the renewable electricity production with the capacity of no more than 43,5 kW the distribution network company may deviate from the connection obligation only if
 1. the company notifies the person requesting the connection of this, and
 2. the notification is given within one month of the company receiving the request.

There is a separate rule regarding the connection fee for RES according to the Electricity Act, chapter 4, 10 §. If, according to an agreement with a grid company, the government has financed measures that are necessary to increase the capacity of the grid to facilitate the connection of facilities for the production of renewable electricity, the fee for connection must be calculated 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.
For RES connection to the network when the network reinforcement is required, there is a possibility to apply for a loan, according to the Ordinance (2015:213) on loans to network companies to facilitate the connection of renewable electricity production. According to the regulation, and subject to the availability of funds, Svenska kraftnät may grant loans to network companies to facilitate the connection of plants for the production of renewable electricity to the network. 
When assessing whether a network reinforcement loan should be granted, special consideration must be given:
1. if the network reinforcement is done in an area which, due to wind direction or other circumstances from an energy point of view, is particularly suitable for renewable electricity production,
2. if the network reinforcement contributes to a more efficient use of the electricity grid, and
3. how large the electricity production is expected to be from the facilities that will be connected as a result of the grid reinforcement.
In order to be able to apply for a loan, certain conditions must be fulfilled, which are specified in Art 4.
There are now specific rules for connection of energy storage. According to 4 chapter 6 § of Electricity Act, network companies must have standardised procedures for connection of production facilities and energy storage facilities in order to enable fast and safe connection.
According to Ch. 3, § 39 of the Electricity Act, a network company may not own, develop, manage or operate an energy storage facility. In individual cases, the Energy Market Inspectorate may grant an exemption from the ban on network companies owning, developing, managing or operating an energy storage facility. The network authority may grant exemptions in individual cases from the prohibition in § 39.

The holder of a "line grid concession" (i.e., the grid operator) is obliged to connect renewable energy plants on reasonable terms unless there are special reasons (Chapter 3 art 6–7, Electricity Act). According to the Swedish Energy Markets Inspectorate, the grid operator is not obliged to connect plants to the grid if grid capacity is insufficient. Applicants have to submit an application for connection to the grid operator (Chapter 4 Art 12, Electricity Act). The DSO/TSO is obliged to process the connection applications within a reasonable period of time (Chapter 4 Art 11, Electricity Act). Both parties then sign a grid connection agreement. The plant operator bears the costs of connection by paying the network tariff to the grid operator (Chapter 4 Art 1 and 5, Electricity Act). The holder of a line network concession (i.e., the grid operator) is obliged to provide all information on their network tariff (including the terms and conditions for connection) on request within a reasonable period of time (Chapter 4 Art 11, Electricity Act). Plants/installations with a maximum capacity of 1.5 MW are subject to a reduced tariff (Chapter 4 Art 10, Electricity Act).

Specifications for islands, isolated grids, microgrids, local grids, etc. 

Exceptions

According to the Ordinance (2007:215) on exemption from the requirement for a network concession according to the Electricity Act (1997:857) § 22 and § 24, an internal low-voltage network for the transmission of electricity from a facility that produces electricity or from an energy storage facility may, if the facility is directly connected to the internal low-voltage network and the low-voltage network is not an overhead line, be built and operated without a network concession.
1. within the network operator's property, and
2. between buildings and facilities that each also have a connection to a line or a grid that is used with the support of a network concession. Ordinance (2022:1391).
On such an internal low-voltage grid, an electricity transfer on behalf of someone else may take place even if the buildings and facilities have different owners.

Possibilities to differentiate RES in scale and technology? 

Swedish legislation does not address this possibility. 

Rights and obligations of customers and prosumers
According to the Electricity Act, chapter 11, electricity consumers have the following rights:
Contract terms which, in comparison with the provisions of this chapter, are disadvantageous to the consumer have no legal power.
Consumer's rights in connection to the termination on electricity supply due to the consumer's breach of contract. The rights mean that network companies and electricity trading companies only have the right to interrupt the transmission of electricity during certain special, specified circumstances and in accordance with the specified routines.
Right to receive the information from the grid company about a coming power outage because of safety issues, whenever it is possible. Rights regarding damages in the event of the interruption of the transmission of electricity. Right to compensation for power outage under certain circumstances. Right to the contract with an electricity supplier, the contract must contain certain information according to the law. The right to change electricity supplier without extra cost. Right to receive information from the electricity supplier about changes to terms and prices. Right to the information about consumers' rights and how to proceed in case of a complaint. 
Consumers have obligation to provide the system responsible authority with the information on consumption of electricity needed to carry out system responsibility, according to Electricity Act, Ch. 8, consumers have also obligations to follow the contract terms according to the contract with a grid company or an electricity supplier (Electricity Act, chapter 11, paragraph 3.
Prosumers: - An electricity supplier that delivers electricity to an electricity user who is entitled to a tax reduction for micro-production of renewable electricity according to Ch. 67 The Income Tax Act (1999:1229) is obliged to receive the electricity that is fed in from the electricity user's production facility. 
- An electricity user who has a subscription for a fuse of no more than 63 amperes and produces electricity that can be fed in with a power of no more than 43.5 kilowatts does not pay any fee for the feed-in. Law (2022:596).

BUT the EMI’s assessment (NOT legislation) is that everyone who owns a production plant must pay a network fee that reflects the actual costs of feeding in electricity, and this also applies to owners of smaller production plants. A reduction in the grid fee for small-scale production facilities means in practice that the cost is passed on to other grid customers, which is not compatible with the electricity market regulation, which is an EU regulatory framework. As The Electricity Market Ordinance takes precedence over national regulations, it must be followed, even though the Swedish legislation (Electricity Act) says otherwise. Grid fees should not, therefore, be reduced for small-scale production facilities. 

Right to tax reduction for installation of green technology, according to Income Tax Act (1999:1229), Ch. 67, §§ 3-48 including installation of grid-connected photovoltaic system, installation, installation of systems for storing self-produced electrical energy.

Rights and obligations of plant operators
Rights: - The owner of an electricity production facility is entitled to compensation from the grid company to whose transmission network the facility is connected (Electricity Act Ch. 3,§ 43). The compensation must correspond
 1. the value of the reduction in energy losses that the input of electricity from the facility brings into the network company's transmission network, and
 2. the value of the reduction in the network company's fees for having its transmission network connected to another network company's transmission network, which is made possible by the installation being connected to the transmission network. 
- Electricity producers who, at the behest of the Swedish power grid, reduce or increase electricity production are entitled to a market-based compensation for the increase or decrease (Electricity Act, Ch. 8, § 3). 
- A network company must procure the electricity intended to cover network losses or that is needed for the operation of the transmission network in an open, non-discriminatory and market-oriented manner.
Obligations: 
- owners of electrical facilities must provide the system responsible authority with the information on production, transmission or consumption of electricity that is needed for the exercise of the overall system responsibility.
-Electricity Act Ch. 7, §2 - Electricity producers must publish the information that electricity suppliers need to be able to report information on each individual energy source's share of the average composition of energy sources and the emissions of carbon dioxide and the amount of nuclear fuel waste that the production of the sold electricity has caused.
-Chapter 8, §13 - the system responsible authority may, to the extent necessary to be able to exercise system responsibility, order electricity producers to increase or decrease the production of electricity, against market compensation.
-The Energy Market Inspectorate's ordinance on establishing requirements for data exchange between electricity grid companies and significant grid users states that owner of a production facility connected to the transmission or distribution system within the area of observability and who is a significant network user according to Article 2.1 a and 2.1 e of the Commission Regulation (EU) 2017/1485 shall provide relevant system operators for distribution systems and the transmission system operator with the information that follows of Article 48 of Commission Regulation (EU) 2017/1485.

Specific rules or obligations concerning RES plant operators
There are no specific rules indicated for RES plant operators; the rules are the same for all types of plants. 
What differentiates RES plant operators is that they are eligible for electricity certificates according to the Act on electricity certificates. This act aims to promote the production of renewable electricity in order to reach the common electricity certificate market with Norway by 2030, the common goal with Norway of 46.4 terawatt hours of new renewable electricity production and even in 2035 to fulfil volume-related obligations. In order to be awarded an electricity certificate, the owner of a production plant must apply in writing to the supervisory authority for approval of the plant for the award of an electricity certificate. A plant must be able to produce renewable electricity and be put into operation in order to be awarded an electricity certificate.

According to the Swedish Energy Agency, the electricity certificate system will end in 2035 and will be closed for production facilities that are put into operation after the end of 2021 (NOT legislation). Stoppdatum för elcertifikatsystemet flyttas inte fram (energimyndigheten.se)

Task of the DSO/TSO
Svenska kraftnät (TSO) has the task of managing, operating and developing a cost-effective, reliable and environmentally friendly power transmission system in a business-like manner, selling transmission capacity and otherwise conducting activities connected to the power transmission system.
For DSO, the following information is applied. According to Electricity Act, Ch. 3 § 1, a grid company must, in relation to its electricity grid, be responsible for
 1. operation and maintenance,
 2. expansion, if necessary,
 3. any connections to other wiring networks,
 4. that the grid is safe, reliable and efficient, and
 5. that the grid can meet reasonable requirements for the transmission of electricity in the long term. Act (2022:596).
§ 2 The operation of a line or a line grid must be organised so that the following measures are carried out in Sweden:
 1. monitoring and control of the line or network, and
 2. issuing work requests and operating orders. Act (2022:596).

Role of the National Regulatory Agency (NRA)
NRA in Sweden is the Energy Market Inspectorate. Its overall tasks and role are, among others:
- responsibility for the supervision, regulation and permit examination according to the Electricity Act (1997:857) as well as for supervision according to the Act (2013:385) on intervention against market abuse in trade in wholesale energy products,
- draw up and publish a supervisory policy,
- follow and analyse developments in the electricity market and submit proposals for changes in regulations or for other measures to promote the functioning of the market,
- within its area, fulfil tasks that follow from the EU legislation and cooperate with European regulatory authorities and with the agency in order to work for a harmonisation of regulations so that equal conditions are created in the electricity market within the Nordics and the EU.

Grid use/management rules on islands
No different rules are indicated for islands.

Curtailment 

The authority responsible for the electricity system (TSO or DSO) may request a plant operator to increase or reduce the output of a plant to guarantee grid stability. If a plant operator has to reduce the output of a plant, they will be compensated for the market value of the electricity. (Chapter 8 Art 2 Electricity Act).

Priority for RES

Principle of non-discrimination applies in Sweden and does not give priority to RES.

Procedure 

In principle, the grid operator is obliged to develop the grid if necessary (Chapter 3 art 1, Electricity Act). However, there is no legal provision obliging the operator to extend the grid. Nevertheless, an indirect obligation exists as plant/installation operators are, in general, entitled to grid connection. There are no regulatory instruments to encourage grid development. According to the Energy Markets Inspectorate, the plant operator in question bears the costs of a grid expansion if the expansion is only to their own benefit. It is possible for the state to finance grid extension necessary for connecting RES plants/installations to the grid, in which case the plant/installation operator only covers the costs corresponding to the connection of their plant/installation (Chapter 4 art 9b, Electricity Act).

According to Chapter 2, Article 12 & 12a, a network concession may only be granted if the facility is suitable from a general point of view. Law (2021:741). When examining a network concession for a line, a facility must be considered suitable from a general point of view if

 1. The lead is needed for

 a) to fulfil obligations according to this law or requirements resulting from Sweden's membership in the European Union,

 b) a safe and sufficient electricity supply,

 c) increased network capacity that is judged to be economically viable, or

 d) to satisfy another pressing public interest, and

 2. The line has an appropriate location in the network and an appropriate technical design in terms of direct or alternating current and voltage.

Tasks of the DSO/TSO

Svenska kraftnät (TSO) has a task of managing, operating and developing a cost-effective, reliable and environmentally friendly power transmission system. Svenska kraftnät shall (among others) expand a transmission grid for electricity in Sweden and connections with electricity grids in other countries based on socio-economic profitability assessments, as well as within its area of operation, ensure that the opportunities to expand renewable electricity production and new areas of use for electricity are taken advantage of in the transition of the electricity system. Svenska kraftnät shall also, within its area of operation, work to ensure that the energy policy goals approved by the Parliament are achieved.

Svenska kraftnät shall, every two years starting in 2023, draw up a ten-year investment plan and submit the plan to the Energy Market Inspection.

Svenska kraftnät is also an electricity preparedness authority according to the Electricity Preparedness Act (1997:288). Before a facility that is essential for the electricity supply in Sweden or within a locality or an area is built, rebuilt, or otherwise changed, notification must be made to the electricity emergency authority for examination. The work may not begin before the authority has decided on the matter.

A network company (DSO) is responsible for expanding its electricity network if necessary so that the network can meet reasonable long-term requirements for electricity transmission (Electricity Act, Ch. 3).

DSO must draw up a network development plan with the information about the need for flexibility services in the medium and long term, planned investments over the next five to ten years with an emphasis on the main distribution infrastructure required to connect new generation capacity and new load, and the resources to be used as an alternative to an expansion of the electricity network (Ordinance (2022:585) on electricity network activities).

On the grounds of Electricity Law 3 ch. 3, art. 18, DSO must draw up an investment plan and submit it to the grid authority. There is a revenue regulation for the grid companies which the Energy Market Inspectorate is responsible for. It is through the revenue regulation that the power grid companies must be given room to finance future power grid expansion (https://www.riksdagen.se/sv/dokument-och-lagar/dokument/motion/investeringar-i-elnatet_hb02774/). Large additional customers, such as large industrial customers, pay entry through connection fees. This means that large industrial customers will finance part of the transformation of the energy system (https://ei.se/konsument/el/elnatsavgiften-och-elnatsreglering/fragor-och-svar-om-elnatsreglering-och-elnatsavgifter).

Obligations and rights of plant operators

A network company must procure the electricity intended to cover network losses or that is needed for the operation of the transmission network in an open, non-discriminatory and market-oriented manner.

Role of the NRA

A power line may not be built or used without a permit (network concession). According to the Electricity Act (1997:857), the network authority (Energy Market Inspectorate) is responsible for supervision, regulation, and permit examination. EMI handles applications from network companies for permission to build and use electricity lines (concession).

• 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/) 

The relevant legislation in Sweden in the energy sector is:

Sweden’s energy policy is based on three pillars as it aims to reconcile environmental sustainability, security of supply and competitiveness. Energy policy must create the conditions for efficient and sustainable use of energy and a cost-effective Swedish energy supply with a low negative impact on health, the environment and climate and facilitate the transition to an ecologically sustainable society. In June 2023, the Riksdag adopted the objective for the composition of electricity production in 2040 to be 100 % fossil-free electricity production. 

The energy policy in Sweden is based on several legislative acts:

• Electricity Act (1997:857), which is supplemented by various provisions stemming from secondary legislation.
• Environmental Code (1998:808)
• Income Tax Act (1999:1229)
• Climate Act (2017:720)
• Act on special management of certain electrical installations (2004:875)
• Act on electricity certificates (2011:1200)
• Act on the Certification of electricity transmission grid companies (2011:710)
• Act on special management of certain electrical installations (2004:875)
• District heating Act (2008:263)
• Act on tax on energy (1994:1776)

There are different types of energy efficiency measures used in Sweden: advisory services, financial support for R&D, municipal energy planning, and the survey of energy efficiency requirements for large companies, industries and energy producers. Energy efficiency policies take the form of support for small actors and obligations for larger stakeholders.

• Research grant for resource and energy efficient construction and housing. Current calls for 2024 are Support for the production of biogas, Design for energy-efficient everyday life, call 9, Resurseffektiv bebyggelse, Större pilot- och demonstrationsprojekt för energi- och klimatomställning, and Forskningsinfrastruktur för framtidens yarncraft.
• Energy efficiency advising for SME’s. The Swedish Energy Agency offers various types of information and advising about energy efficiency for SMEs, for example, online courses and tailored support for individual companies.
• Energy surveys for large companies. Large companies are obliged to carry out an energy survey every four years. The survey is executed by a certified surveyor.
• Mandatory cost-benefit analyses. It is mandatory for district heating companies and industrial companies planning to construct a new plant or to upgrade a plant to conduct a cost-benefit analysis for incorporating heat from waste in the generation process.
• Grants for energy efficiency in single-family houses.
• Funding for energy and climate advising. Municipality and regional authorities can apply for funds from the Swedish Energy Agency in order to provide local stakeholders with climate and energy advice. In addition to funding, the scheme also providers training for persons working as energy and climate advisers.

Swedish Energy Agency
County Administrative Boards
Land and Environmental Court

Sweden promotes RES through a handful of mechanisms: the quota system based on electricity certificate trading and a tax regulation mechanism. Most incentives are open to all RES technologies, but some impose conditions regarding the capacity or specific renewable energy source (e.g., reduced real estate tax is aimed only at wind power or energy tax allowance supports wind, wave, and solar power plants).

There is also a tax deduction for the installation of green technology - deduction for the cost of labour and materials. 

A tax reduction for green technology is given for:

1. Installation of grid connected solar cell system. Tax reduction is given with 20 percent of the cost of work and materials.
2. Installation of systems for storing self-produced electrical energy. Tax reduction is given with 50 percent of the cost of labour and materials.
3. Installation of charging point for electric vehicles.

Tax reduction is given with 50 % of the cost of labour and materials.

A tax reduction is also available for micro-production of renewable electricity for private properties and for commercial properties, according to the Income Tax Act (1999:1229) Ch. 67. 

Renewable electricity refers to electrical power produced from

•  Sun, wind, waves, tides, or geothermal heat,
• Water-based energy that is generated in hydropower plants,
• Biomass or products produced from biomass, or
• Fuel cells.

The reduction is applicable for the number of kilowatt hours that are fed into the electricity grid. (if you notify the electricity grid company that you are producing renewable electricity, and your facility meets certain conditions.)

Another scheme is the reduced energy tax for micro-production of renewable electricity for own use. The exemption from tax liability applies to electric power, which is produced in a plant with an installed peak power of less than 100 kW, by a producer who has a total installed generator output of less than 100 kW, and which has not been transferred to a transmission network, which is covered by a network concession, and which has been announced with the support of Chapter 2 the Electricity Act.

Installed peak power for renewable electricity facilities is equivalent to the following: 

•  Wind or waves, instead is equivalent to 250 kilowatts,
• Solar, instead corresponds to 500 kilowatts installed peak power, and
• Other energy source without a generator, instead equivalent to 100 kilowatts of installed power (Act (1994:1776) on tax on energy Chapter 11 art 2).

Sweden does not have a national 2030 target for renewable energy. In Sweden's previous integrated energy and climate plan that was submitted to the European Commission in 2019, the Swedish Energy Agency's long-term scenarios from 2018 were used with the then-decided policy instruments as a starting point for a national contribution to the Union's common goals by 2030. The Swedish Energy Agency's reference scenario with recommended conditions from the EU then pointed towards a share renewable energy in relation to gross energy use of 65 percent in 2030 with the then current calculation method. In the Swedish Energy Agency's latest scenario analysis from 2023, which is used for this plan, a share of 67 percent renewable energy is reached in 2030 in the Base Scenario.51 (Sweden's updated national energy and climate plan for 2021–2030, dated 2024-06-27).

The previous energy policy goal for 100 percent "renewable" has been changed to 100 percent "fossil-free" electricity production in 2040 through the Tidö agreement, which has now been adopted in the Parliament (prop. 2022/23:99 Vårnändringsbudget for 2023). The Tidö agreement is an agreement on the political direction for the mandate period 2022–2026 that the cooperation parties within the Government concluded in October 2022.

• Quota system is the single largest and most significant RES support mechanism in Sweden. Energy suppliers are obliged to prove that a certain quota of their electricity production was generated by RES.
• Tax regulation mechanisms ensure different tax privileges to RES-E.

• County Administrative Boards
• Swedish Energy Agency
• National Board of Housing, Building and Planning
• Svenska kraftnät (TSO)
• The Swedish Tax Authority

In Sweden, tax exemptions are the main incentives to support renewable heating. The instruments are, in general, technology neutral. 

Sweden does not have a national 2030 target for renewable energy (NECP, 2018). According to the 2016 trajectory, the share of RES-H&C will increase slightly from the current level to 69% of final consumption by 2030 (ibid.).

• Tax exemption for biogas. For biogas or biodiesel that is consumed as fuel for heating, exemption from energy tax is granted at 100 percent and from carbon dioxide tax at 100 percent (Act (1994:1776) on tax on energy, Ch. 6a). Biogas for heating has long been tax-exempt in Sweden. In June 2020, the EU Commission approved continued tax exemption for biogas and biogasol in Sweden for the period 2021–2030. However, this tax exemption was annulled in a judgment of the General Court on 21 December 2022. In October 2024, the European Commission has decided to approve Sweden's tax exemptions for biogas and biodiesel (Press release from the Ministry of Finance the 23rd of October 2024).
• Ordinance (2022:225) on government support for the production of certain biogas. Companies who produce biogas from stable manure and/or produce biogas that is upgraded to biomethane in gas or liquid form can apply for support for biogas production. Responsible authority: Swedish Energy Agency.
• Ordinance (1997:634) on government contribution to investment for reconstruction and connection of electrically heated buildings to district heating. According to this regulation, grants may be available for the conversion and connection of residential apartments and certain residential premises in electrically heated buildings to district heating. Such grants may not cover measures carried out in premises used for commercial or industrial purposes.
• Ordinance (2015:517) on support for local climate investments sets out the rules for support for the production of biofuels and biofuels and support for the use of biofuels for the production of electricity, heating and cooling may only be given if the fuel is covered by a sustainability notice according to the Act (2010:598) on sustainability criteria for biofuels and biofuels. If it is a question of the use of solid or gaseous biofuels for the production of electricity, heating or cooling in a facility other than such a facility referred to in Chapter 1 § 3a of the Act on Sustainability Criteria for Biofuels and Biofuels, support is given even if the fuel is not covered by a sustainability statement according to the same law.
• Tax reductions for households:
  • Ordinance (2023:402) on subsidies for energy efficiency in single-family houses sets rules for subsidies for measures that promote efficient energy use and a reduced power requirement for room heating and domestic hot water heating in electrically or gas-heated single-family houses. The grant is applicable for material costs for the energy efficiency measures on the house’s heating support. In addition, households can also receive a grant for measures on the outer shell of the house.
  • Act 2009:194 sets rules for the tax-deduction for installation of different types of heating systems such as heat pumps, solar heat systems, boilers. The installation of renewable energy devices and the replacement of conventional heating sources with renewable ones may be deducted from tax.
• Energy and carbon dioxide taxes. In Sweden, energy and carbon dioxide taxes are levied on the supply, import and production of fossil fuels for heating purposes. Energy tax must be paid for fuels specified in Ch. 2. §§ 1, 1 a, 3 and 4. Renewable energy sources are exempt from these taxes.
• Nitrous oxide tax. The producers of heat are obliged to pay a tax according to their nitrous oxide emissions. Heat producers using renewable energy sources are exempt from this obligation.

• Energy Authority
• Swedish National Board of Housing, Building and Planning
• Swedish Environmental Protection Agency
• Swedish Tax Authority

The two large incentives for RES-T in Sweden are a biofuels quota and tax exemptions for biofuels. Recently, Sweden has also begun to incentivise the purchase of electric and RES-fuelled vehicles and their charging stations with subsidies.

The Swedish Energy Agency has a commission to pay climate premiums for light electric trucks. This is a new support from February 13, 2024. 

There are opportunities to apply for grants for different types of charging infrastructure from the Swedish Environmental Protection Agency (investment aid from Climate Leap for charging stations for the public and charging infrastructure in businesses; charging stations for residents and employees – investment aid from Charge the car).

• Tax regulation mechanism. Companies supplying, importing, and producing fossil fuels are obliged to pay energy and carbon dioxide taxes. Biofuels are exempt from these taxes.
• Biofuel quota. Fuel suppliers who are liable for tax for a fuel subject to reduction must mix in sustainable biofuels in the fossil fuels with the quota level that applies to the individual calendar year.
• Climate leap. The broad R&D for local and regional climate measures also enables subsidies for RES-T projects.
• Electric bus premium according to the Ordinance (2016:836) on electric bus premium. The government subsidises electric and hybrid buses in order to increase their share in public transport.
• Climate premium. The government through the Swedish Energy Agency subsidises electric and hybrid heavy machinery purchases in order to increase their share. The climate premium can be applied for by companies, municipalities and regions that are going to buy a new electric light truck. The purpose of the climate premium is to promote the introduction of certain environmental vehicles on the market, reduce emissions of greenhouse gases and thus contribute to reduced noise and a better climate.
• Act (2010:598) on sustainability criteria for biofuels and biofuels.

• Swedish Energy Agency
• Swedish Tax Authority
• Swedish Environmental Protection Agency
• Swedish Transport Agency