In December 2024, the government tasked the Swedish national grid operator (Svenska kraftnät) with supporting county councils in their work to coordinate the regional implementation of energy and climate policy.
The county administrative boards are to support municipalities and other local actors in their energy planning, i.e. how energy supply should function even in a crisis. However, for this to become a reality, clear incentives and political decisions are needed.
No legal definition of energy communities in Sweden
Experience from Ukraine shows that local electricity production is crucial to securing energy supply in times of crisis. The county administrative boards therefore need to focus on promoting energy communities, where neighbouring buildings share and store their own electricity, and on expanding solar power production.
By strengthening municipalities’ opportunities to plan for local electricity production and energy sharing, we can create a more robust and flexible electricity system.
Integrating energy communities into sector coupling
Despite this, there is no legal definition of energy communities in Sweden, which is hampering development. The Swedish Energy Agency has proposed that energy communities be defined in Swedish law, a welcome step that the government should take further.
Several other European countries have taken the opportunity in this process to define electricity that is both produced and used within the energy community as collectively self-consumed electricity.
Swedish Solar Energy Federation: Batteries pose no grid threat
However, we must also create the conditions for energy communities to emerge in practice. The Swedish Energy Market Inspectorate’s latest proposal on virtual sharing of electricity – sharing between end customers in the public electricity grid – unfortunately has major shortcomings.
The proposal has been criticised by the authority’s own reference group for lacking economic incentives.
Proposed measures
For the development of energy communities to take off in Sweden, concrete political decisions and long-term sustainable conditions are required. Fastighetsägarna and Svensk Solenergi therefore propose five measures:
Abolish energy tax on self-consumed renewable electricity: It is unreasonable to tax electricity that is produced and consumed by the same actor. The tax hinders investment in decentralised electricity production, which is important for Sweden’s energy security.
Enable electricity sharing within energy communities without energy tax: Property owners and residents within the same energy community should be able to share electricity between themselves without being subject to the current electricity tax of 43.9 Öre per kWh excluding VAT, when the electricity transmission does not burden the public grid.
Allow virtual sharing of self-generated electricity: Property owners and other actors should be able to share their self-generated electricity on economically sustainable terms without incurring unreasonable charges. Both collectively used electricity and shared electricity from solar installations should be counted as own use if it is consumed at the same time as it is produced.
Introduce a two-tariff system: Electricity users should pay lower grid fees when they use electricity at the same time as it is produced locally. In addition, those who own a share in a solar plant and use electricity at the same time as the plant produces electricity should be exempt from electricity tax. This reduces pressure on the national grid and increases incentives for local production.
Introduce clear rules for energy communities: The Swedish Energy Agency’s proposal to define energy communities is good but must be supplemented with rules that make it easier to join and share electricity in practice.
“We are calling for clear answers”
Sweden cannot build a robust and resilient energy system without exploiting the potential of locally produced solar power and energy communities.
Ukraine: “Renewables strengthen resilience”
Energy communities and increased local production of solar power are needed to secure Sweden’s energy supply, not least in times of crisis. We are now calling for clear answers from the government: When will electricity producers and consumers get the tools they need? (hcn)
This article was first published on Altinget.