Skills issue crucial to solving the electricity networks’ capacity deficit
2019-09-12
Three quick questions to Mats Ählberg, the industry representative at the Swedish Electricity Entrepreneurs, about the electricity networks’ capacity deficit and how broad collaboration is required for Sweden to successfully make the energy transition and be able to secure a future electricity supply.
Do Sweden’s electricity networks have a capacity deficit?
– First of all, you have to make a distinction between two terms that are often mixed up: a power deficit and a capacity deficit. A power deficit is when the electricity demand is, at a specific time, higher than what the national system can supply, for example on a bitterly cold winter’s day. A capacity deficit is when the regional or local electricity network is unable to transfer the required electricity.
There is no general capacity deficit in the electricity networks; there are, however, regional and local capacity deficits. Until now, it is mainly the metropolitan regions and the region around Lake Mälaren that have begun to experience capacity deficit problems.
Why is that then?
– They are many reasons for the capacity deficit: one is urbanisation is happening much quicker than had been predicted, which has resulted in a dramatic increase in the need for electricity in, for example, Stockholm. A second reason is that authorisation processes for building new electricity networks are extremely long, up to 15 years. A third, and now topical, reason that has worsened the situation is the closure of local combined heat and power (CHP) plants (which produce heat and electricity) due to increased tax on the fossil fuel the CHP plants use. New types of users, for example data halls, have also emerged that are very electricity intensive and also have short planning processes.
What is needed to solve this?
– Possible short-term solutions are electricity suppliers and customers reducing their electricity consumption in various ways when the electricity network is overloaded, for example by way of so-called demand response contracts and production control contracts. New electricity network tariffs that incentivise customers to use electricity at low load times and energy efficiency measures can also help improve the situation. What is required in the long term is a general reinforcement of the electricity networks – the national grid, the regional networks and the local networks. This requires a sound and predictable regulation of the electricity networks that sufficiently incentivises the electricity network companies to make the necessary investments.
To carry out all these necessary investments, it is crucial we solve the industry’s resource and skills shortage. Finding solutions requires broad collaboration between various policy areas, the industry, government agencies, the education system, etc. Without this, we will neither be able to solve the capacity deficit nor carry out the vital energy transition.
Mats Ählberg was interviewed by Malin Sahlén, senior associate partner and head of office at New Republic. ‘Three Quick Questions…’ is a series of interviews conducted by New Republic.