Sweden produces a lot of electricity, but most of it is produced far from the majority of consumers and industry. The result? Failure to start new businesses due to energy shortages in many places, costing society large sums of money in lost revenue. – The site needs to think more proactively, but then we need to review policies and regulations, says Jan Djurström unit manager at RISE.
Today, most of Sweden's electricity is produced in the north, while most of it is consumed in the south. There are several reasons for this, but one is that we have chosen to phase out nuclear power in southern Sweden. Add to this the fact that Sweden is part of an electricity market that includes the other Nordic countries, as well as the UK and several continental countries, and you quickly realize that the issue of getting electricity in the system to where it is needed is topical, to say the least.
– Energy needs to be moved from where it is produced to where it is consumed, and we are already seeing bottlenecks in network capacity, says Emil Hillberg, senior researcher at RISE.
These bottlenecks lead to two major problems. First, the price of electricity is very high in some areas, and second, many municipalities in Sweden find it difficult to attract new industries simply because they do not have access to enough electricity.
– It can take ten to fifteen years to build new grids, while industries and other production want to set up as quickly as possible once they have decided to expand. They really don't want to wait a decade, says Emil Hillberg.
Lost revenue
This lack of investment represents a significant loss of revenue for society, and Jan Djurström believes that electricity distribution companies need to start thinking more proactively.
– To a certain extent, new technologies can be used to reduce the margins in the system and thus allow larger flows, but this is not enough, says Jan Djurström.
Instead, the possibility of building new networks faster needs to be explored, but this is more about political issues than pure technology.
– Today, municipalities have the right of veto to say no to new production or new power lines. There is speculation about whether this right should be abolished, and one can consider whether this is good from a democratic point of view. But you can look at it the other way around and see if the municipalities can make a profit from the new facilities, Emil Hillberg says.
If you want to have new businesses in the municipalities in the future, it can be good to have that new power line
Linking new grids and new industries
In other countries, for example, there are models where part of the profit from new electricity production goes back to the municipality, something that has not yet been tried in Sweden.
– On the other hand, we may need to do more to emphasize the link between new lines and electricity production and possible new industry. If you want to have new businesses in the municipalities in the future, it can be good to have this new line, and it is probably not always the case that everyone has seen this connection, says Jan Djurström.
Proactive work required
But new opportunities are also needed for both Svenska Kraftnät and the local grid companies to work more proactively and to include in their analyses the costs to society of not having a grid due to power shortages.
– But grid construction and changes in planning do not happen overnight. These are expensive investments that will last for at least fifty years, and in an uncertain future with rapid changes, perhaps what is needed is a better ability to plan and analyze. It shouldn't be too fast either, says Mr. Djurström.
To achieve this balance, RISE is constantly researching alternative grid solutions.
– We are also working with grid companies and Svenska Kraftnät to better understand the new market, its uncertainties and future needs. Traditional solutions are no longer sufficient, and with our knowledge and role as an independent party, we can help find the new alternatives that are needed, says Jan Djurström.