Sweden’s power sector is on track for rapid renewable expansion, but limited grid transmission capacity risks restricting the market’s potential, according to a new report from GlobalData.
The intelligence platform’s latest market report reveals that Sweden’s installed power capacity is projected to expand at a compound annual growth rate (CAGR) of 2.9 per cent between 2025 and 2035. Growth will be led by onshore wind, offshore wind, and solar PV, supported by Sweden’s existing nuclear and hydroelectric base.
Industrial electrification is driving the surge in demand, with major energy-intensive projects, such as fossil-free steel production, battery gigafactories, green hydrogen development, and data centres, requiring large volumes of reliable electricity.
However, GlobalData analysts warn of a growing geographical mismatch between generation and consumption. Sweden’s primary renewable and hydro resources are located in the north, while major population centres and industrial hubs are situated in the south.
Constrained north-to-south transmission lines currently cause grid congestion, forcing clean energy curtailments in the north while pushing up electricity prices for southern consumers.
GlobalData Power Analyst Attaurrahman Ojindaram Saibasan said grid investment is a crucial element in Sweden’s broader energy transition.
“Without faster delivery of transmission upgrades, northern clean power surpluses may be curtailed or exported while southern industrial users face tighter supply and elevated price volatility,” Saibasan said.
He noted that transmission expansion plans by grid operator Svenska kraftnät will be just as vital as new generation projects in guaranteeing dependable, competitively priced energy.
While Sweden’s policy settings aim for a completely fossil-free electricity system and net-zero emissions, long-term success hinges on coordinated regulatory approvals for offshore wind, grid reinforcement, and long-duration nuclear power financing.
Saibasan added that Sweden possesses the resources and industrial demand to remain a leader in European clean power, provided infrastructure keeps pace.
“The policy test is not simply to add more capacity, but to ensure that clean electricity can reach consumers when and where it is needed,” he said.
