In 2024, Sweden experienced a historic surge in installed battery capacity, jumping from 80 MW to 610 MW registered to provide balancing services for Svenska kraftnät. However, grid infrastructure and regulatory frameworks are not evolving at the same pace, creating growing friction between storage developers and grid operators.

“One of the main challenges for operators is predicting how batteries will be used,” states the report by Svensk Solenergi, which is based on interviews with grid companies and technical analysis by Sweco. This uncertainty makes grid planning and capacity forecasting increasingly complex amid a rapid electrification of industry and households.

Sweden’s shifting energy landscape

This storage boom unfolds in a power system already undergoing major change. According to Energiföretagen, Sweden’s total installed capacity reached 47,936 MW in 2024, with net electricity generation totalling 141.3 TWh. Hydropower was the dominant source, providing 68.5 TWh, followed by nuclear at 48.5 TWh, and wind at 20.7 TWh. Solar remained marginal in absolute terms, contributing 0.7 TWh, yet it is steadily increasing.

Given this diversified but increasingly variable generation mix, energy storage is essential to ensure flexibility and resilience. Yet grid operators are still unprepared to fully integrate battery systems.

Technical, tariff-related and regulatory barriers

Swedish grid operators face specific challenges related to the bidirectional flows typical of battery storage. These systems can rapidly shift between charging and discharging, producing sudden peaks in power that are difficult to manage.

On top of this, batteries tend to have low and highly variable utilisation rates, making it difficult to assess their real impact on local networks. According to the report, “battery load profiles are highly volatile, complicating technical assessments of their integration”.

Conditional grid connection agreements are one tool to mitigate these constraints, allowing limited and flexible access to the grid. However, these agreements are still rarely used and are unevenly applied across Sweden. The report notes that “conditional agreements lack standardisation, and many operators have no clear criteria for their use”.

Moreover, current tariff structures do not reflect typical battery behaviour. “Tariffs are not designed for systems that deliver low energy volumes but experience significant power peaks,” warns the report. This results in distorted economic signals that discourage optimal battery usage.

A regulatory framework in flux

The study also identifies a significant mismatch between the rapid growth of storage systems and the current regulatory framework. At both the national and EU levels, rules governing battery connection and operation are under revision, but timelines for implementation remain unclear.

The revised EU Requirements for Generators (RfG) regulation proposes the explicit inclusion of Electricity Storage Modules (ESM), imposing similar requirements to those for conventional generators. It also introduces new features, such as grid-forming capabilities, weather resilience, and the use of EVs as distributed storage.

Simultaneously, Sweden’s Energimarknadsinspektionen (Ei) is updating its national regulation, EIFS 2018:2, which complements the RfG. For the first time, it includes a dedicated chapter on battery storage, with distinct requirements depending on type (C or D) and functions like Power Oscillation Damping (POD). However, Svenska kraftnät warns that existing POD implementations do not meet its performance needs and recommends seeking regulatory exemptions.

“The current framework is ambiguous, and operators are unsure how to apply or enforce specific technical standards,” the report highlights. The lack of clear compensation mechanisms for constrained or flexible operation also discourages adoption of such agreements.

Caution and conservative attitudes

The report stresses a prevailing sense of caution among Swedish grid operators towards integrating battery systems, leading to delays and limited innovation. “Grid companies prioritise system stability, which often results in unnecessarily rejecting or delaying new battery connections,” warns Svensk Solenergi.

Some operators voiced concerns about not being able to control the real-time behaviour of battery installations, especially under high-load conditions or when combined with distributed generation. This is compounded by limited digitalisation and automation across local grids, further hampering adaptation.

Meanwhile, demand for battery connections continues to rise, driven by market opportunities and the growing need for flexibility. The report warns that unless these barriers are swiftly addressed, Sweden risks slowing its energy transition and missing the full potential of battery storage to ease grid congestion and improve efficiency.

Sweden now faces a critical crossroads: a massive expansion in storage capacity requires equally bold changes in technical, regulatory and operational frameworks. Otherwise, the disconnect between available technology and institutional readiness could become a bottleneck for the country’s energy transition.

“This is the first comprehensive review of Sweden’s regulatory framework for battery grid connection,” concludes Svensk Solenergi. And judging by the findings, it is also a call to action.