Full Breakdown
Sweden Pauses Konti-Skan Connect Cable Project Amid Dispute Over Congestion-Charge Revenues
5/9/2026, 6:26:36 AM
Swedish Government Halts New Power Cable to Denmark
Sweden will put on hold plans for a new power cable to Denmark, as announced by Energy Minister Ebba Busch on May 8, 2024. The cable, known as Konti-Skan Connect, is intended to replace two ageing links between southwestern Sweden and Denmark. The decision follows Sweden's disagreement with a European Commission proposal concerning the use of revenues from electricity congestion charges.
Background & Context
Sweden exports excess power generated by nuclear, hydropower, and renewable sources to Denmark, Finland, and Germany via undersea cables. Earlier this year Sweden warned it could limit electricity exports to neighboring countries if the dispute over congestion-charge revenue allocation was not resolved. The country expects to collect about 130 billion Swedish crowns (? $14.11 billion) in congestion-charge revenues over the next decade. The European Commission has proposed that such revenues be earmarked exclusively for grid-related projects, whereas Sweden wants to allocate them to new electricity-production capacity, including nuclear reactors.
Key Figures & Groups
- Ebba Busch – Sweden’s Energy Minister.
- European Commission – EU body proposing the allocation rule.
- Swedish grid operators – Recipients of congestion-charge earnings.
- Swedish centre-right government – Seeking funding for four large-scale nuclear reactors or equivalent small modular reactors.
Data & Statistics
- Expected congestion-charge revenue: 130 billion Swedish crowns over ten years.
- Planned nuclear capacity: ? 5,000 MW across four reactors, with 50 % targeted to be operational by 2035.
- Existing infrastructure: Konti-Skan Connect is designed to replace two ageing cables linking Sweden and Denmark.
Why It Matters / Impact
The pause may affect Sweden’s ability to export electricity to neighboring markets. The disagreement reflects differing views on the allocation of congestion-charge revenues between grid upgrades and new generation capacity. Sweden’s nuclear expansion plan aims to add around 5,000 MW of capacity, with half expected online by 2035, and the government seeks to fund it using congestion-charge proceeds.
Official Statements & Responses
Energy Minister Ebba Busch emphasized that Sweden intends to use congestion-charge income to fund new generation capacity rather than solely grid upgrades, describing the Commission’s proposal as unacceptable. She announced the suspension of the Konti-Skan Connect project and reiterated the government’s commitment to advancing four nuclear reactors, aiming for half of the capacity to be online by 2035. The European Commission’s position on the allocation rule was not detailed in the available statements.
Verbatim Quotes
What’s Next
The future of the Konti-Skan Connect project will depend on the outcome of the ongoing dispute over congestion-charge revenue allocation with the European Commission. Sweden’s nuclear program continues to pursue financing for the planned reactors.
