Sweden warns of power export cuts over EU funding plan

Sweden has issued a warning that it may restrict electricity exports to neighboring nations if a disagreement with the European Commission over the use of national funds for European Union energy projects is not resolved. Deputy Prime Minister Ebba Busch signaled on Monday that the government is prepared to take significant steps to protect its national interests, a move that could disrupt the energy balance across Northern Europe. The country currently exports excess electricity from its fleet of nuclear, hydropower, and renewable energy plants to Germany, Denmark, and Finland. These exports are facilitated by a network of subsea cables and land-based interconnectors that are vital to the regional grid. > "If it comes down to this, then we will take drastic measures," Busch, who also serves as the energy minister, said in an interview. The conflict stems from an EU proposal to mandate that 25% of congestion revenues collected by national grid operators be allocated toward EU-backed cross-border energy infrastructure. Congestion revenues occur when grid constraints prevent electricity from flowing freely to high-demand regions, resulting in price gaps and earnings for network operators. Currently, national operators maintain control over these funds to improve their own domestic infrastructure. Because of its internal grid dynamics—where hydropower is abundant in the north but supply is tighter in the south—the Swedish power grid operator collected 30.5 billion Swedish kronor, or roughly $3.26 billion, in congestion revenues in 2025. Busch confirmed that the government has already discussed the possibility of restricting flows on existing power interconnectors. > "That is one of the measures that we have been discussing, and that would have support in Sweden," Busch added. During a meeting of EU ministers in Brussels, EU Energy Commissioner Dan Jorgensen stated that the Commission would work with governments to address concerns regarding the national control of these funds. A leaked negotiating document indicates that officials are considering a compromise that would allow countries to keep revenues collected inside their borders while only earmarking revenues from cross-country power trading for EU-wide projects.