Why Electrified Flexible Industry?
Electrification is advancing faster than grid expansion
Swedish industry is transitioning at a rapid pace. However, the capacity required for this transition is not in place when needed—and building up to meet demand takes years.
This makes grid capacity one of the most critical issues for Swedish industry’s competitiveness over the coming decade. Here are the driving forces behind it—and why the solution is not primarily about building more grid infrastructure.
How the capacity shortage arose—and what will resolve it
From a growing electricity demand to an industry capable of managing its own consumption—here is the complete chain.
The entire industry is transitioning—simultaneously
Steel mills, pulp mills, foundries, and automotive plants are replacing fossil energy with electricity in processes that have remained unchanged for decades. Individually, each represents an investment. Together, they are transforming how much electricity is needed, where it is needed, and when.
Electricity demand is growing faster than anyone planned for
Climate targets and customer requirements are accelerating the electrification of existing production. At the same time, entirely new loads are emerging: hydrogen production, heavy-duty vehicle charging, and energy-intensive digitalization. The combined demand is growing faster than the grids were originally dimensioned to accommodate.
Capacity is sufficient—but not at every moment
The electricity grid is dimensioned according to the highest simultaneous load, not according to total energy consumption. Consequently, an area may be at full capacity in grid terms while the infrastructure remains half-empty for large portions of the day. It is the peak that sets the limit.
Building up capacity is not enough
Grid expansion is necessary—but it takes years, costs a great deal, and does not resolve local bottlenecks quickly enough. In the meantime, investments remain on hold and the transition is postponed. The fastest route to greater capacity is to make better use of what already exists.
From electricity customer to actor in the energy system
Today, industry is primarily a passive consumer that purchases electricity and protects its capacity subscription. With advanced digitalization—measurement, forecasting, and control—the same industry can shift loads, share energy, and offer flexibility to the grid, thereby both reducing costs and generating new revenue.
Flexibility does not mean producing less
Being flexible means being able to shift, smooth out, or temporarily adjust one’s electricity use—not to reduce production. Often, it involves doing the same thing at a different time, or allowing a process to wait a few minutes.
Sweden is not alone—but not first either
Several regions in Europe have advanced further with regulations for energy sharing and flexibility. The project maps what works there, what Sweden can adopt, and provides policy recommendations based on those findings.
The question is not whether, but how
The technology to make industry flexible already exists. What remains is to demonstrate that it works in live operation, that it is profitable, and that stakeholders can collaborate around it.