Svenska kraftnät offers retroactive compensation to speed up power grid expansion

A government proposal to double the compensation level from 25 to 50 percent of the market value in the Right of Way Act is out for consultation until September. The increase itself will be hammered out in parliament and is expected to come into effect in July 2027 - regardless of who wins the election this fall.

Handled retroactively

Negotiations on voluntary lease agreements with landowners have, however, begun to become difficult, as landowners want to wait for what appears to be significantly better conditions next year. This is something that Svenska kraftnät's Director General Thomas Pålsson and his staff now want to remedy.

We want to clarify that we will be able to handle this retroactively, says Johan Ulleryd, department manager at Svenska kraftnät.

Anyone who signs a contract with us now should not risk worse compensation than someone who signs later, he adds.

The extra retroactive compensation - which is therefore conditional on the Riksdag actually raising the level - will be paid to the owner of the property at the time of payment, but does not include Svenska kraftnät's house purchase.

Exactly when the land concession agreement was signed does not matter, as long as the agreement is valid when the legislative amendment regarding the increased compensation level comes into force.

Even those who have signed a land lease agreement, but where Lantmäteriet has not yet made a decision on access, can also take advantage of Svenska kraftnät's retroactive extra money if the compensation amount is increased in the future.

To cover potential delays in the legislative process, Svenska kraftnät's offer is valid until July 1, 2028.

8000 km of main network

Last year, Svenska kraftnät signed around 800 land lease agreements, but hopes to increase the volume of agreements in the future to reach the goals for expansion of the national grid.

The main grid - owned by the state-owned Svenska kraftnät - currently consists of approximately 1,600 km of high-voltage lines. They function as the electricity grid's highways, between power plants and regional networks.

We will in principle build another 8000 km of main network in 15-20 years in Sweden, so it is a fairly large and extensive new construction project, says Johan Ulleryd.