Sweden offers landowners retroactive pay for electricity grid expansion

Svenska kraftnät, Sweden's state-owned electricity grid operator, is introducing a new incentive for landowners to expedite the planned 800-mile expansion of the national high-voltage power line network. The company is offering landowners retroactive extra payments, which will be paid out if a government proposal to double compensation rates is approved.

The proposed increase would raise the compensation for land use from 25% to 50% of the market value, as stipulated in the lead rights law. This proposal is currently out for consultation until September, with the parliamentary vote expected in July 2027. The new compensation level is intended to apply retroactively, meaning landowners who sign agreements now will not receive less compensation than those who wait for the higher rates.

Thomas Pålsson, Director-General of Svenska kraftnät, and his team are addressing a slowdown in voluntary land use agreements, as landowners are holding out for the potentially more favorable terms next year. "We want to clarify that we will be able to handle this retroactively," said Johan Ulleryd, a department manager at Svenska kraftnät. "Those who sign an agreement with us now should not risk receiving worse compensation than those who sign later," he added.

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We want to clarify that this we will be able to handle retroactively.

The extra retroactive compensation is contingent on the parliamentary approval of the rate increase. It will be paid to the property owner at the time of disbursement, regardless of when the land use agreement was signed, provided the agreement is still valid when the law change takes effect. This offer extends to landowners whose agreements are pending approval by Lantmäteriet, the real estate authority, to cover potential delays in the legislative process, with the offer valid until July 1, 2028.

Svenska kraftnät signed approximately 800 land use agreements last year and aims to increase this volume to meet its ambitious expansion goals. The current national grid comprises about 1,600 miles of high-voltage lines, serving as the main arteries connecting power plants to regional networks. The company plans to add another 800 miles over the next 15 to 20 years, representing a significant undertaking in new infrastructure development.

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Those who sign an agreement with us now should not risk receiving worse compensation than those who sign later.