Sweden’s expanding clean power capacity could face challenges in delivering reliable, competitively priced electricity due to limited transmission capacity between the country’s energy-rich north and major demand centers in the south, according to GlobalData.
In its latest report, Sweden Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035, GlobalData forecasts that Sweden’s installed power capacity will grow at a compound annual growth rate of 2.9% between 2025 and 2035. Wind and solar power are expected to drive expansion, while hydropower and nuclear energy will continue providing low-carbon electricity.
Growing demand from industrial electrification, fossil-free steel production, green hydrogen, battery manufacturing and data centers is increasing the need for reliable power supplies. However, transmission bottlenecks could restrict renewable generation, increase regional electricity-price differences and leave southern consumers facing higher costs despite surplus generation in the north.
Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, said faster grid upgrades would be critical to Sweden’s energy transition. He stressed that transmission investment must keep pace with new generation capacity to ensure clean electricity reaches consumers where and when it is needed.
Offshore wind offers significant long-term potential, although development will depend on regulatory approvals, environmental assessments, defence requirements and grid connections. Onshore wind and solar PV are also expected to contribute to future supply growth.
Meanwhile, Sweden’s policy direction supports a fossil-free electricity system, with renewed interest in nuclear power as a source of dependable, low-carbon generation.
GlobalData said coordinated investment in transmission infrastructure, renewable energy, permitting and new nuclear capacity will be essential for Sweden to meet rising electricity demand and maintain its competitive advantage in clean power.
