Energy company makes record investment to strengthen Gothenburg's electrical grid

“This is a unique investment for us. In total it concerns an investment project worth nearly SEK 1 billion [approx. EUR 100 million]. And it’s needed. In 2035, the power needs in Gothenburg are expected to be 70% more than they are today. That’s equivalent to a new Malmö [Sweden’s third largest city],” said Lars Edström, CEO at Göteborg Energi Nät AB, in a press release. 

One of the drivers of this growing demand is the transition currently taking place in both the petro-chemical industry and within mobility and the transport sector, explains Björn Gustafsson, energy expert and project manager at Business Region Göteborg. He adds:    

“Scandinavia’s largest port also operates in Gothenburg and it is making great efforts to reduce its environmental impact - and electrified vessels and goods transportation on land are important components. In addition, Gothenburg’s population is growing, and vehicles are becoming more sustainable and electrified. These are contributing to an increased need for power,” says Björn Gustafsson.   

To meet the increasing demand requires a rapid expansion of the electricity grid at local, regional and national levels. Göteborg Energi’s investment includes, for example, two new 130 kW-receiving stations at Hisingen and a double 130 kW- transmission line.  

“In total this will increase capacity in Gothenburg and West Sweden by 500 MW. The investment is crucial for the new battery gigafactory, which needs around 250 MW. But it also creates possibilities for the large-scale electrification of transport on land and water, as well as the transition of industry in the region and tomorrow’s sustainable urban development,” said Lars Edström. 

The new gigafactory in Gothenburg is a joint venture between Volvo Cars and Swedish battery maker Northvolt, known as Novo Energy. The new plant will be operational in 2025 and will employ around 3,000 people. It will be located beside Volvo Cars’ production plant at Hisingen in Gothenburg, where it will produce battery cells for Volvo Cars and Polestar’s fully electric models. 

Gothenburg, which has been named the world’s most sustainable destination, aims to drive the transition to an environmentally sustainable society. The city has highly ambitious targets in place, including reducing the climate impact of transportation by at least 90% by 2030 compared with 2010. Becoming a more electrified society is seen as an important step in this green transition.