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Busch Rejects Congestion Fee Revenue for Offshore Grids

It is not possible to use bottleneck fees to subsidize the connection fee for offshore wind power, according to the government. It does not comply with the regulatory framework, says Minister for Energy and Industry Ebba Busch (CD).

» Published: October 23 2024

Busch Rejects Congestion Fee Revenue for Offshore Grids
Photo: Jakob Åkersten Brodén/TT

The so-called congestion fees arise when there are price differences between the different electricity areas in Sweden. The fees go to the state-owned Svenska kraftnät, which has now analyzed the question of using these revenues for offshore grids.

They have drawn the conclusion that there is no possibility of using congestion fees for this, says Ebba Busch at a press conference.

According to Svenska kraftnät, congestion fees cannot be used to benefit only certain companies, as this contravenes EU rules.

No Application

It is the Energimarknadsinspektionen that ultimately decides on congestion fees. But according to Busch, Svenska kraftnät will not submit an application, as it is deemed to constitute "unlawful state aid".

On the other hand, Svenska kraftnät can use its funds to finance connections that benefit the entire electricity system, if it is deemed to be socio-economically viable.

Then there is no obstacle to expansion. Then Svenska kraftnät has the opportunity to make that assessment if they believe it is socio-economically justified, says Ebba Busch.

Affecting Customers

She also emphasizes that it would affect consumers and other producers to use congestion fees to finance connection fees.

Even if the connection fee were to be financed with congestion revenues, the proposal ultimately means that it is the network collective that needs to bear this cost, i.e. other network-connected consumers and producers, she says.

For example, land-based wind power would have to pay more if we were to subsidize the connection fee for offshore wind power.

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By TTThis article has been altered and translated by Sweden Herald
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