Swedish grid operator to boost 2027-2029 investments by SEK14B
TL;DR
Sweden's Svenska Kraftnät will invest SEK14 billion from 2027-2029 to boost grid capacity and resilience. This includes SEK4 billion for north-south transmission and SEK10 billion for crisis preparedness, aiming to lower electricity prices and support renewable energy growth.
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Swedish grid operator to boost 2027-2029 investments by SEK14B
Swedish Grid Operator to Boost 2027–2029 Investments by SEK14B
Sweden’s national transmission system operator, Svenska Kraftnät, has announced a significant increase in grid investments, allocating SEK14 billion ($1.47 billion) for the 2027–2029 period. This includes SEK4 billion to expand north-south transmission capacity and an additional SEK10 billion for crisis preparedness and grid repairs, reflecting growing demands on the country’s energy infrastructure.
The SEK4 billion investment aims to increase north-south transmission capacity by 800 megawatts by 2029, addressing persistent grid congestion caused by shifting energy dynamics. Declining nuclear capacity in southern Sweden and rising wind power generation in the north have created imbalances, leading to price disparities between regions. Upgrades to substations and existing infrastructure will avoid the lengthy and contentious process of building new power lines. These measures are part of a broader plan to raise transmission capacity to 10,000 MW by 2040, from 7,300 MW currently. Early improvements are expected to lower electricity prices in southern regions by improving supply flexibility.
Separately, Svenska Kraftnät will invest SEK10 billion to strengthen grid resilience amid a “deteriorating” national security environment. This funding prioritizes rapid repair capabilities and crisis preparedness, ensuring continuity of service during disruptions. The operator emphasized that these investments align with Sweden’s energy transition goals while addressing immediate operational risks.
The combined SEK14 billion commitment underscores the urgency of modernizing Sweden’s grid to accommodate renewable energy growth and geopolitical uncertainties. With implementation beginning in 2026, the upgrades are expected to enhance market efficiency and reduce regional price volatility over the next decade.
($1 = 9.5152 Swedish crowns)
Sources: Reuters, EnergyWatch
