Sweden has been a member of the EU since 1995. Since then, the country has set a goal to reach net-zero emissions by 2045, five years ahead of the joint European Union (EU) target. The main greenhouse-gas emitting sectors in Sweden are industry and transport. The energy transition will require faster electrification in these two sectors, including for producing green hydrogen for industrial use.
The electricity use in Sweden is 140TWh on average, and 34% of the total energy use. To meet the increase in demand from the industry and transport sectors, it is expected that electricity production will need to double by 2045. So far, expanded production has taken place in wind and photovoltaic power. This increase in production is also expected in nuclear power. The grids will require a similar expansion to facilitate the increase in electricity supply and demand.
Sweden’s electricity generation market has been deregulated since 1996, and electricity is traded on the Nord Pool Exchange. Large electricity users, however, commonly enter into bilateral contracts directly with the power producers. There are about 140 electricity suppliers in Sweden. Sweden's power producers consist of:
- Vattenfall (41%)
- Uniper (16%)
- Fortum (14%)
- municipally owned energy utilities (13%)
- Statkraft (6%)
- other industry and private actors (10%)
The annual electricity production of about 163TWh in 2023 was represented by:
- hydro (40%)
- nuclear (29%)
- wind (21%)
- bio-based power (8%)
- solar (2%)
A minor share (0.3%) was represented by fossil fuels. Close to 30TWh of the power produced in 2023 was exported.
Investments in renewable sources are expected to continue increasing in the coming years, according to the following:
- onshore wind from 34TWh in 2023 to 76TWh in 2029
- off-shore wind with 10TWh by 2029
- photovoltaic power from 3TWh in 2023 to 9TWh in 2027
The Swedish government is updating policies to simulate for nuclear investments. Sweden would like to see the equivalent of two large reactors (2500 MegaWatts) built by 2035, with a further expansion by 2045. An expansion of hydro production is limited by legislation protecting further exploitation of rivers. The bioenergy sector is already well established. Biomass and waste are used as the main feedstock at combined heat and power (CHP) plants that connect to the power grid and district heating networks. District heating represents over half (59%) of the Swedish heating sector. The rest of the heat is produced by:
- electricity (28%)
- biomass-based fuels (12%)
- and oil and gas (1%)
A total of 1.73 million heat pumps were installed and used in Sweden in 2023. Most were in residential homes to help reduce electricity costs.
The distribution of electricity in Sweden is fixed and regulated through the Swedish Energy Markets Inspectorate. The Swedish National Grid (Svenska Kraftnät) is the state-owned transmission system operator (TSO) and owner of the high-voltage main transmission grid (400kV and 220kV). The TSO is also responsible for balancing the grid at 50Hz frequency. The regional distribution networks are 97.7% owned by the following three companies:
- Vattenfall Eldistribution AB
- E.ON Energidistribution AB
- Ellevio AB
A total of about 160 public and private companies (DSOs) own and operate the local grids. The total length of Sweden`s electricity grid (main, regional, and local) is 596 000 km, 444 000 km of which is located underground. The Swedish electricity system is part of the integrated European electricity system. This operates through high-voltage transmission connections with the neighboring Nordic countries Norway, Finland, Denmark, along with Lithuania, Poland, and Germany.
The expansion of intermittent sources in the Swedish electricity system and a more efficient use of the grids require increased flexibility. Energy storage installations with batteries are quickly expanding in all segments, notably:
- homes
- buildings
- industry and large-scale battery parks
Battery parks and other sources provide ancillary services to the Swedish National Grid, which procures through three different markets:
- fast frequency reserve (FFR)
- frequency containment reserve (FCR)
- frequency restoration reserves (FRR)
Moving forward, these markets are expected to continue to develop to allow for integration of advanced technical and dynamic solutions. As of2025, all electricity trading will move from hourly to quarterly pricing. Designated service operators (DSOs) are required to implement a component in their tariffs that is relative to power demand by no later than January 1, 2027. This will allow for more flexible electricity use by household consumers. This component is also expected to even out power loads.
The increasing degree of electrification will require a different power system than what currently exists in Sweden. It will require an enhanced focus on flexibility, resilience, and robustness. Many areas will become increasingly crucial, such as:
- energy storage
- demand-side flexibility
- energy efficiency
- efficient use of resources
- energy infrastructure