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Swedish wind power association faces 700% grid fee hike after subsidy removal

Economy & businessEconomy
Swedish wind power association faces 700% grid fee hike after subsidy removal
Key Points
  • Kvismardalens vind's grid fee increased from 46,000 to over 400,000 kronor annually, a 700% hike
  • Subsidies for small-scale producers ended due to an EU rule and a 2024 injunction
  • Grid fees aim to manage congestion and apply broadly, with complaints rising and further increases possible

The wind power association Kvismardalens vind, with about 400 private shareholders, has seen its annual grid fee to Eon surge to over 400,000 kronor, up from 46,000 kronor, marking a cost increase of over 700 percent. The association operates three wind turbines in Odensbacken: two with a nominal output of 800 kilowatts and one with 850 kilowatts. When wind turbines deliver electricity to the grid, the association must pay a fee to the grid owner, in this case Eon, as part of a power fee designed to even out grid usage.

This fee arises because when a large amount of electricity is sent into the grid, it becomes congested and costs more for electricity producers. A similar fee exists for some companies and consumers who buy electricity. For smaller electricity producers, the power fee had been subsidized, but an EU rule has put a stop to this.

In March 2024, Eon and a couple of other grid companies in Sweden received an injunction from the Energy Market Inspectorate stating they are no longer allowed to subsidize these small-scale producers. Broader context shows that a record number of people are complaining about grid fees. Large price increases for grid fees may continue next year, according to experts.

There are 30 unused billions in the pot that grid companies can charge customers.

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SVT ÖrebroDagens Nyheter
2 publications · 1 official
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