Incentive Scheme for Efficient Utilization of Electricity in Sweden
As a result of the 2012 Energy Efficiency Directive,
the Swedish regulatory authority for energy, the Swedish
Energy Markets Inspectorate (Ei), has introduced new rules
regarding an efficient utilization of the electric power system. To
incentivize distribution system operators (DSOs) to operate their
networks in an efficient way, Ei has developed financial
incentives within its revenue cap regulation.
This paper describes the newly developed incentive scheme in
Sweden that aims to incentivize DSOs to a more efficient
utilization of power systems; first implemented during the
regulatory period 2016-2019. The indicators that are used for
measuring to what extent the grid is utilized efficiently are:
network losses, cost of the feeding grid and average load factor.
This paper aims to act as reference material and inspiration to
others as well as a chance for Ei to receive feedback valuable for
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