New rules open the door to green hydrogen
The Energy Markets Inspectorate (Ei) has ruled that electrolyzers, i.e. production units for hydrogen, can be classified as energy storage facilities. This means they are exempt from the grid concession requirement – a decision that creates new opportunities for the role of hydrogen in the energy transition. This decision not only facilitates the deployment of electrolysers, but also provides clearer rules for the sectors where hydrogen can make the biggest difference: mobility, energy and industry.
What does the decision mean?
In Sweden, network concessions – special permits – are normally required to build electricity networks. But there are some exceptions, including for internal networks. Ei’s decision means that electricity lines to electrolyzers can also be covered, even if the hydrogen is then transported away from the plant. This means that companies can connect, for example, wind or solar power directly to an electrolyzer without having to go through a long and costly permitting process.
– The announcement from Ei is very significant and timely. The ambiguities have already cost us valuable time, but now we hope that more actors will dare to take the step of establishing hydrogen production in energy parks around the country. At the same time, we still need to clear up the last ambiguities so that the regulatory framework is as clear as it needs to be. This is an important first step to enable large-scale hydrogen production in Sweden,” says Björn Aronsson, Executive Director of Hydrogen Sweden.
Accelerating the path to hydrogen-powered vehicles
For the transport sector, the decision means that the production of renewable hydrogen can start faster and at lower cost. It strengthens the possibility of establishing local refueling stations and supplying buses, trucks and work machines with fossil-free fuel.
Flexibility and system benefits
As an energy storage facility, the electrolyzer becomes part of the flexibility of the electricity system. It can harness surplus solar and wind power, convert it into hydrogen and help balance the electricity grid. This makes it key to a robust and fossil-free energy supply.
Increasing the competitiveness of green production
Industries such as steel, chemicals and refineries are major users of hydrogen. Being able to build locally produced electrolysis capacity without obstacles from grid concessions lowers the establishment thresholds. This strengthens Sweden’s ability to attract investment in green industry and meet the EU’s climate goals.
Clarity on the regulatory framework will be the next step
At the same time, questions remain about how long a connection line to an electrolyzer may be and how the exemptions should be applied in practice. For the hydrogen sector, it is important that Ei and the government now clarify the framework so that the decision can have full effect.
