Response to interpellation 2023/24:704 on connection to the main grid
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
The debate concerns connection to the main grid and the need for expanded fossil-free electricity production for the green transition 1. KD believes that the government is working to streamline grid connection processes through clearer guidelines and increased information sharing 1 2. KD emphasizes that maturity level is a clear parameter and that the grid companies' roles should become more predictable and transparent 2 3. KD argues that decision-making processes should be non-discriminatory 3. KD believes that energy planning is crucial and that combined heat and power, gas turbines, hydropower, and existing nuclear power is the way forward until 2030 4. SD requests clearer definitions of maturity level 5 6. SD requests clarity regarding timelines and the treatment of state versus private actors 7. SD emphasizes the importance of fair and transparent rules of the game 7 6.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Energi- och näringsministern Ebba Busch (KD)
Madam Speaker! Johnny Svedin has asked me if I intend to take any general measures to ensure that the connection to the main grid occurs in a consistent, transparent and fair manner for all parties involved.
Sweden faces a comprehensive transition of the energy supply and a massive expansion of the electricity system. From having had a nearly constant electricity demand for over 30 years, the electrification of industries and transport is expected to lead to significantly increased electricity use in Sweden. Already today, we see in several places in Sweden a shortage of capacity to connect new facilities to the electricity system. Therefore, it is of particularly great importance that we utilize the existing electricity system in the best possible way.
In February last year, the state-owned enterprise Svenska kraftnät presented four measures to improve the process for new connections and increased subscriptions. Among the measures are increased requirements for maturity and a greater application of connection agreements with conditional capacity.
The Government considers it important that the process be streamlined and therefore, in June 2023, commissioned Svenska kraftnät to clarify and specify the existing guidance for connecting new facilities to the transmission grid. The assignment also included developing advice and recommendations for the grid companies regarding, among other things, requirements for maturity, information sharing, and contract management.
On the same day, the government also tasked the Energy Markets Inspectorate to investigate a developed and efficient information sharing for applications for new connections to the electricity grid. The government considers that current practice does not provide sufficiently good conditions for assessing the planning conditions of the electricity system. A more purposeful information sharing would facilitate the analysis work and enable better resource utilization, so that the operation and development of the electricity system can take place in a safe and efficient manner.
Madam Speaker! The Government will continue to work on streamlining the grid connection processes, but for Sweden to be able to connect the demanded electricity consumption, Sweden is dependent on a substantial expansion of predictable fossil-free electricity production. The electricity grid also needs to be expanded, and with more predictable fossil-free electricity production in the system, the transmission capacity in the electricity grid increases further.
Access to more predictable fossil-free electricity production in Sweden is a prerequisite for us to manage the electrification and succeed with the green transition.
Johnny Svedin (SD)
Madam Speaker! Thank you for the answer, Minister!
In the interpellation, I highlight the need for a consistent, transparent and fair handling of the process for connection to the main grid. I am thinking particularly of the new guidelines and regulations being introduced by Svenska kraftnät.
I still express some concern regarding the definition of the maturity level concept and how this is quantified and communicated. I want to emphasize that ambiguities in the concept can create uncertainty for new actors and potentially benefit established companies.
The response from the Minister for Energy and Industry concerns how the government and Svenska kraftnät handle these processes, with information on previous and recently taken measures to improve transparency and fairness in the connection process. The Minister's response also includes specific measures, such as increased requirements for maturity and conditional capacity agreements. Furthermore, the government's work to clarify guidelines and increase information sharing is emphasized, in order to facilitate a better assessment and planning of the power system's capacity. I thank you for that.
I would however like the answer to be more specific regarding how maturity level is exactly defined and quantified, which was part of my question. Even though the answer covers broad parts of process improvements and future initiatives, it leaves the questions about certain details, such as maturity level and its practical application, unanswered.
Madam Speaker! With this said, I also wonder if the Minister has the opportunity to also answer the question regarding what possibilities the government and Svenska kraftnät have to regularly review and adjust the application of the maturity level, in order to ensure that it continues to be relevant and fair.
Energi- och näringsministern Ebba Busch (KD)
Madam Speaker! I will nevertheless begin with the last part of Johnny Svedin's question.
We have an ongoing dialogue with our authorities, not least SVK, which is an authority that is crucial for us to manage this electrification. They have a rather substantial task, partly based on our joint Tidö Agreement and the extensive section on just energy issues, but also based on the government mandates we have given. Padrons investigation also points to increased future responsibility for SVK to achieve a more proactive operation regarding how the authority works.
This is an ongoing work. We are now seeing how the authority responds to the government mandates, regulatory letters, and instructions that we have given it so far. Based on that, we can conduct a dialogue if additional parts are required.
But we also have the opportunity to evaluate the outcome of the assignments we have given so far. This includes, among other things, the assignment we gave Svenska kraftnät and Energimarknadsinspektionen in June last year to facilitate these processes. I still want to emphasize that that work did not begin with this government assignment, but the authority had already been working on this partly on its own. And the government's assignment to Svenska kraftnät is about supplementing the guidance with appropriate requirements on maturity level and information sharing.
Svenska kraftnät has also developed a comprehensive portal on its website to help those who wish to connect to the transmission grid find the right path. There is a description of the process, information on how to get in touch, what it costs, what an application should contain, and so on. There are also recommendations on what an application should contain to enable an assessment of the degree of maturity.
I think one can be humble here regarding the fact that Sweden has not worked actively with this previously. It has been added as a result of our government and the four coalition parties' work. Therefore, I do not consider it unlikely that we may need to develop this further forward.
EI has also submitted proposals with different implementation times. Some measures can be applied already today, without requiring constitutional changes. Other things will require more work ahead. But my hope is that the electricity grid companies will actively follow these proposals for measures and that EI follows up if further measures are needed based on this.
Some of these guidelines and recommendations consist of the Guideline for connection to the Main Grid, and recommendations to grid companies have been "trickled" from this. Maturity level is now a clear parameter, as is energy analysis and requirements for more detailed schedules.
I hope that this, Madam Speaker, provides some further answer that we are following this very closely here. It is partly somewhat new for a government in Sweden - though not for our government - to work so actively with the issue.
Johnny Svedin (SD)
Madam Speaker! I thank the Minister once again for the answer.
As I mentioned earlier, Svenska kraftnät's guidance for connection to the national grid can have both minor and major consequences for those involved. It is important to highlight what role state-owned companies have in the process of national energy policy. It is also of the utmost importance for investors and for the industry to get clarity on the government's and Svenska kraftnät's timeline for full implementation of the mandate that Svenska kraftnät has been assigned. Energimarknadsinspektionen has also been given a mandate to monitor this.
The question is which date applies for the implementation. Was it December 31, 2023, i.e., at the turn of the year, or is it December 31, 2024? Now I might have mixed up the years; it should probably be 2024 and 2025 respectively.
In the government's new energy policy direction proposal, it is evident that a rapid and purposeful expansion of the electricity grid should be facilitated through shortened and streamlined permit processes, which is of course good and something we welcome. Clarity is required regarding which concrete measures the government intends to implement to make these processes more predictable. What does this mean in practice, and how does the government ensure that the streamlining does not affect other important values, for example environmental considerations and the interests of the local population?
Furthermore, I believe it is important to understand how state-owned companies have been able to update their principles for connection to the electricity grid at record speed. Is it possibly a sign that state-owned companies are given advantages that are not available to private actors?
For the market to function and for there to be confidence in the state as a market actor, it is important that all companies are treated equally and that the processes are transparent, which I have mentioned before. It is also necessary to ask the question about the position and why a certain state-owned energy company's latest actions were not carried out based on previous practice. Is there a broader change in the government's policy? How does this relate to the ambition to ensure a fair and competition-neutral energy market?
Finally, I want to bring up Svenskt Stål AB, SSAB, and its transition to becoming an electric steel plant. It is critical that we as decision-makers understand why and how the government's measures to prioritize the power allocations to SSAB have been influenced by national climate goals. This issue is relevant not only from an industrial perspective but is also central to how Sweden should position itself in relation to the climate goals for 2030.
Madam Speaker! In summary, I believe that these questions need to receive a clear and well-considered answer from the Minister and the Government. We must be able to guarantee that our energy policy is not only ambitious but also fair and transparent, and that it provides clear guidance and support to all involved actors.
Energi- och näringsministern Ebba Busch (KD)
Madam Speaker! I would like to give a compliment to Johnny Svedin's tricky and well-informed questions. I want to be clear initially that I, as a minister, will of course not comment on individual cases here in the chamber. I see from Johnny Svedin's body language, if I dare to interpret it, that he has a full understanding of that.
We are extremely concerned that these decision-making processes should be transparent and non-discriminatory. I am very concerned about the discussions that have occurred, including among others about the possibilities of obtaining ore and about bandwidth in the form of railway gauge. Other similar discussions have also been held. That there are question marks at all about whether we treat all companies equally is concerning.
Let me make a slightly broader distinction. I have the great honor and the great responsibility—I do not say burden, but it is in any case a huge task—to be responsible for all business issues in Ulf Kristersson's government, everything from small and medium-sized enterprises, scaleup and startup companies, heavy industry and life science to mining and energy issues. For me, it has been very important not to have responsibility for the state-owned companies. Admittedly, I always represent the government, and we have responsibility for the state-owned companies. But I have wanted to be system-responsible in relation to energy issues and, in that perspective, separate the double hats that have sometimes occurred in previous governments.
To answer some of the date questions a bit more precisely: The work from Svenska kraftnät's side is ongoing throughout this entire year. This has been clearly communicated by Svenska kraftnät themselves. How other actors choose to apply it, if there are questions regarding that, one must ask them.
The work with the entire process itself will also continue after 2024. This applies, for example, to the referral that is to be sent out regarding EI's delivery.
We are working very actively to strengthen the roles of the grid companies as system operators so that they act in a way that is predictable and transparent. It should be clear for the companies how they should think regarding their investments. This is also being done through the electricity market investigation led by Bo Diczfalusy. It is a part of the investigation that perhaps has not been talked about as much, but it will also have an impact on this.
We know what is crucial for Sweden to be able to show that it is possible to have high climate goals and secure growth, jobs, and a secure welfare. What makes that equation possible is a sensible electrification that is not based on fantasies but on transparency and access to power where, when, and in the way it is needed.
Johnny Svedin (SD)
Madam Speaker! I don't actually have that much to add. But however we work with energy supply, it is incredibly important and a major issue that affects many. Up in the northern part of Sweden, it is highly topical in many ways, but it is also so in the southern part where there are great needs for power allocation. There are large projects underway, for example with environmentally friendly steel, something that the Sverigedemokraterna will of course follow with great interest. There are a whole number of issues there that need to be considered.
I still have to bring up this matter regarding power allocation and the concept of maturity level. If one cannot define and clarify what is meant by maturity level, there is a risk that it will be interpreted in different ways, especially from the authority's side, which can lead to oddities. It might also not always turn out so well the longer time passes after one has started implementing this. The question is also whether it has been implemented. Is it, so to speak, valid today to use it as a concept to ensure that certain companies get priority? I ask the question again, because I have not quite received an answer to it.
In connection with that, it is very important that the authority and possibly also the government clarify which rules of the game apply.
Energi- och näringsministern Ebba Busch (KD)
Madam Speaker! The implementation is ongoing throughout 2024 based on a government decision already made. The authorities are now taking it forward. They have been very clear that they will take all of 2024 to implement it fully.
I want to emphasize that the degree of maturity is one of several criteria, both in the current situation and based on what is being implemented and developed.
Madam Speaker! So, at the end, I want to emphasize that it is good that this part has been added, but we must not forget that energy planning is absolutely crucial. If we do not manage to plan energy more actively for the country as a whole but also locally and regionally, this will still not help. Then you will be sitting there and not be able to put the puzzle together.
The second point concerns electricity production and the capacity shortage. Here, I am very proud and happy about the cooperation between our two parties and the two other partner parties. Simply pouring on more power production is not the solution and the answer to Sweden's serious problems. One must have power. We are facing a huge challenge, not least until 2030. It is about combined heat and power, gas turbines, hydropower and existing nuclear power - that is, power increases there - but also about new nuclear power, which is more likely after 2030 and perhaps more precisely after 2035. That is the way forward.
Madam Speaker! My closing remarks shall be: To be continued! Thank you for a good interpellation!
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.