News
2025/10/17

Vätgas Sverige lämnar remissvar om Kraftlyftet

Government proposal for investment support for electricity production and storage, Kraftlyftet, risk missing a key component of the electricity system of the future: hydrogen. Hydrogen Sweden has therefore submitted a consultation response that shows how hydrogen can increase security of supply, make renewable energy plannable and reduce the need for grid investments.

The government has sent out proposals for new investment support for electricity production, storage and flexibility, the so-called Kraftlyftet. Hydrogen Sweden has submitted its response, as the proposal in its current form risks excluding one of the most powerful solutions for a robust and resilient electricity system: renewable hydrogen.

Why was this consultation important to us?

The proposal risks locking out hydrogen as a system resource, despite the fact that hydrogen can quickly strengthen security of supply where it is most needed. We want to ensure that the support is technology-neutral and functional, so that it can be used in strategic nodes in the electricity system, not only for electricity production but also for flexible load and long-term energy storage.

In addition, we remind the government that since 2023, the EU’s state aid rules (GBER) already allow support for renewable hydrogen via electrolysis – a tool Sweden should now use.

What was missing from the government proposal?

The proposal lists support for bio-cogeneration, renewable gas turbines and direct-connected electricity and heat storage – but omits electrolysers, hydrogen storage and fuel cells.
This means that the solutions that can deliver controllable flexibility, island operation and Long Duration Energy Storage (LDES) are not supported.

We also lack a clear link to the EU’s Renewable Energy Directive (RED III) and Sweden’s own targets for renewable hydrogen. Without this, Sweden risks having to import expensive hydrogen instead of building domestic capacity.

Finally, we note that the government seems to have missed the Energy Markets Inspectorate’s decision (2025-101618) that electrolysers should be classified as energy storage facilities under the Electricity Act, which opens up for exemptions from grid concession and facilitates the expansion of energy storage.

How does hydrogen contribute to security of electricity supply?

Hydrogen acts as a link between electricity and energy.
When the wind is strong or the sun is shining, excess electricity can be converted into hydrogen via electrolysis. It is stored and can later be converted back into electricity in fuel cells or gas turbines – for example, during power peaks on cold winter days, or during extended periods of low electricity production.

Because hydrogen is made up of molecules instead of electrons, it can be stored for a long time – weeks or months – and act as an energy store between seasons.

Examples of how hydrogen strengthens security of supply

Cold winter days: Electrolysers in bottleneck areas can pause their consumption when needed, freeing up power, and stored hydrogen can be converted to electricity via fuel cells or gas turbines until the situation stabilizes.
Windy nights: instead of shutting down wind turbines, surplus electricity can be used to produce hydrogen locally. It is stored and used when demand increases – a smart way to move energy in time and space.

Our key messages

Hydrogen makes the electricity grid safer. It stores renewable energy for weeks or months and delivers electricity when it is really needed.
Hydrogen reduces price fluctuations. Instead of shutting down wind and solar power when there is a surplus, the energy can be harnessed – stabilizing both the grid and prices.
Hydrogen makes renewables planable. With hydrogen, wind and solar can become controllable resources in the energy system.

What we want the government to take away

We hope that the Ministry will recognize the crucial role of hydrogen in building a sustainable and resilient electricity system, by

Add electrolysers, hydrogen storage and fuel cells as eligible measures in the Power Boost.
Promote long-term energy storage (LDES ), which strengthens the balance of the electricity grid and reduces the need for grid investments.
Ensure that support for renewable hydrogen is used along the whole chain – production, storage and re-conversion – so that the full system benefits are realized.
Introduce an alternative support pathway (CISAF) for energy storage including hydrogen storage that is system-connected and tested for its benefits for electricity security and balancing.