The European Commission has approved €300 million of strategic electricity reserve in Sweden, designed to reinforce security of supply during emergencies. The strategic reserve will stay in place until 2035.
Strategic reserves act as a capacity mechanism that compensates for reserved resources, which can be deployed only when demand surpasses available supply. Such shortages in Sweden typically occur during the winter months.
Who can apply and how?
Participation in the reserve will be open to all projects that contribute to electricity supply security, such as electricity generation, demand-side response, and storage.
While generation and storage facilities must be ready to supply electricity, demand-response participants, often being large industrial consumers, must commit to reducing consumption during peak periods. All projects must comply with the EU Electricity Regulation’s carbon emission limits.
Beneficiaries will be chosen through a transparent, competitive bidding process. Selection will be based on the amount of aid per megawatt of capacity and the speed with which resources can respond to scarcity events. To limit market distortion, reserve participants will keep the funded capacity outside regular electricity markets while under contract.
Source: EU Commission
Details
- Publication date
- 19 September 2025
- Author
- European Climate, Infrastructure and Environment Executive Agency