More efficient use of electricity grids can ease electricity shortages

“Grid capacity is underutilised. There is up to 50 per cent air in the system on an annual basis. With a faster and more flexible grid rollout, Sweden can not only ensure access to clean electricity but also bolster its competitiveness and achieve its climate goals. But to succeed, we need cooperation between government agencies, industry and grid companies,” he says.

In the SNS report “Access to Power: The New Role of Grid Companies as Distribution System Operators”, Hannes Sonnsjö has interviewed grid companies and their customers to develop proposals for maximising grid capacity.

Fundamentally, Sweden’s electricity grids are robustly built and dimensioned to cope with peak loads and demand. The focus has been on maintaining and managing a seemingly perfect, completed system. Yet grid capacity will be insufficient to keep pace with increasing demand as both businesses and households switch to a more sustainable energy system with a larger renewable energy component. In the coming decades, electricity consumption in Sweden is expected to more than double from the current 140 TWh to 300 TWh.

Risk of grid capacity shortfalls

“Our research highlights that the existing electricity grid is not built to handle the rapid changes we see today. We need to find innovative ways to increase the capacity of existing grids and speed up the connection of new renewable energy sources,” explains Hannes Sonnsjö.

Although there is currently a good supply of electricity in the system as a whole, the power lines are not able to transmit enough to where it is needed. There have been many warnings that growth regions are at risk of grid capacity shortfalls.

It has also been shown that it takes a very long time to expand electricity grids. The most well-known example is SydVästlänken (South-West Link), which was delayed by many years and has still not reached full capacity.

But if there is capacity in the grid, at least during off-peak periods, why is this not being addressed?

“This depends on several factors. On the one hand, Sweden’s regional and local networks are owned by almost 160 stakeholders with different conditions, and on the other hand there are many technical challenges. Many grid companies have little control over the utilisation rate and there are difficulties in connecting different forms of small-scale electricity production to the grids,” says Hannes Sonnsjö.

Various possible solutions

In addition, there are regulatory challenges, including a cumbersome revenue cap regulation that puts a premium on heavy, expensive equipment, while there is no financial incentive to improve efficiency of grid utilisation.

“There is little incentive to integrate smart operations,” says Hannes Sonnsjö.

In the study, he points to various possible solutions:

• Upgrade electricity grid technology: By investing in smart grids, grid operators can optimise the flow of electricity and increase capacity.
• Increase the number of flexible electricity contracts: By offering electricity prices that vary over time, consumers can be coaxed into switching their consumption to off-peak periods.
• Streamline the connection process: Simplifying the process of connecting new renewable energy sources to the electricity grid can accelerate the transition to a cleaner energy system.
• Change the revenue model: Clarify the legislation regulating electricity grid operations. Make it profitable to digitalise and streamline the utilisation of grid capacity.

“This means that grid companies need to shift from a traditional, managerial role to become active market players, able to promote coordination and flexibility in the electricity system,” explains Hannes Sonnsjö.

The SNS study