Swedish energy minister criticises EU in dispute over grid congestion revenue

Sweden’s energy minister Ebba Busch has accused the European Commission of being “completely absurd” in a growing conflict over how the country can use revenue from electricity grid congestion, Swedish public broadcaster SVT reports.

Busch announced this week that plans for a new power cable to Denmark are being paused after the EU blocked Sweden’s proposed use of so-called congestion revenue—funds generated when electricity is transferred between Sweden’s four pricing zones. The minister wants full flexibility to allocate the money, including for nuclear power expansion and household electricity subsidies.

“I want full freedom for Swedish electricity funds,” Busch stated in an interview with SVT’s Agenda programme on Sunday.

EU commissioner: rules are clear

EU Energy Commissioner Dan Jørgensen, a Danish Social Democrat, told Agenda that the revenue must be used strictly for “ensuring grid interconnection” and a “rational energy system”—not long-term production like nuclear plants. He emphasised that EU law requires faster transitions to renewable energy, which depends on improved grid infrastructure.

Jørgensen also argued that Sweden benefits from selling electricity within the EU’s integrated system, which he claimed would ultimately lower prices. Busch dismissed this as “utterly outrageous,” countering that private companies—not Swedish households or businesses—profit from exports.

“What makes a grid work better? More baseload power,” she said, criticising Jørgensen for what she called hypocrisy after his past promises to avoid “Brussels bubble” thinking.

How congestion revenue works

Congestion revenue arises when electricity produced in a lower-price zone is sold in a higher-price area. Under current rules, Sweden’s grid operator Svenska kraftnät must use these funds to invest in energy infrastructure or reduce costs for consumers.

The dispute centres on whether the money can also finance new power generation, such as nuclear plants—a key demand from Busch’s centre-right government.

Sweden is currently a net exporter of electricity within the EU.