Sweden Halts Konti-Skan Connect Cable Over EU Dispute on Bottleneck Revenues

The Swedish government has paused the construction of the Konti-Skan Connect electricity cable to Denmark amid ongoing disputes with the European Commission over the management and use of Swedish bottleneck revenues. These revenues, generated from electricity transmission fees due to price and production differences across Sweden's electricity areas, currently amount to about 85 billion SEK, with an estimated additional 130 billion SEK expected over the next decade.

Energy and Business Minister Ebba Busch has been vocal in opposing the EU Commission's proposal to use 25% of these funds for EU joint projects. Busch criticized the proposal by stating, "EU should not be able to steal Swedish electricity money," emphasizing that the government must retain discretion in how to use these funds. Sweden aims to employ the bottleneck revenues flexibly, supporting energy security measures including crisis energy support, upgrades to hydropower, and potentially new nuclear power production, although nuclear expansion is not the primary objective.

The government has instructed Svenska kraftnät, Sweden's national grid operator, to remove the Konti-Skan Connect project from its investment plans until the EU addresses these concerns. This suspension comes despite prior successful negotiations earlier this year where Sweden resisted an EU attempt to allocate a quarter of the bottleneck revenues for common projects.

Busch underscored the importance of directing these revenues to directly benefit Swedish households, tackling rising electricity costs exacerbated by international crises such as the Strait of Hormuz tensions. She accused the EU of wanting to channel Swedish funds to less stable energy sources like wind and solar, pointing to issues experienced in Germany during low wind and sunlight periods. Busch also appealed to Denmark and Norway for support, noting that strengthening Sweden's base energy infrastructure would ultimately benefit neighboring countries too.

This decision to halt the multi-billion kronor Konti-Skan Connect project highlights Sweden's firm stance on protecting national energy finances amid complex EU negotiations on electricity market regulations and funding allocation.