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).