How electricity-intensive companies can use the electricity cost support to secure a fixed low electricity price

On March 6, the application process opened for electricity-intensive companies to apply for electricity cost support to compensate for very high electricity prices in 2022. It is an aid to which the companies concerned are entitled in addition to the general electricity subsidy. For many, this means new opportunities to equip their company for the future by investing in their own electricity production through solar cells.

The exceptionally high price of electricity has had a profound impact on many, not least electricity-intensive companies. To compensate and support these, electricity-intensive companies will be able to apply for electricity cost support. For those who want to future-proof their company, this is a perfect opportunity to invest in their own electricity production through solar cells. This will ensure a fixed low electricity price for a very long time to come while creating the conditions for electrification and the green transition by increasing the amount of renewable electricity in the grid.

Arctic paper – early converters to power producers

One company that has already taken this step is Arctic paper. They have been manufacturing paper products since the 18th century and are now represented in both Sweden and Poland. For them, high electricity consumption, higher energy prices and the green transition led to the decision to become an electricity producer. Today, the goal is not only to produce electricity for its own use, electricity production “power”, has become a separate business area where the goal is to produce 40 megawatts of solar electricity by 2030.

By 2030, we will have zero carbon emissions and energy production will account for almost 7% of the group’s turnover. Energy prices are increasing and we see that we can make a good deal by owning our own energy production, but also by offering the market green, sustainable energy. The aim is to build solar power plants that together produce 40 000 000 kWh per year. Says Daniel Bergkvist Group Power Manager at Arctic Paper.

Long-termism is attractive

According to Jonas Almquist, head of large companies at EnergiEngagemang, there is an increased interest from large companies to invest in solar power plants. Partly to ensure a fixed low electricity price for a long time, but also to expand the asset portfolio of the company or create long-term value for shareholders.

This is an excellent opportunity to review your prospects for becoming a solar producer. By producing your own electricity, you tie the price of electricity to your investment cost, which will give you a fixed low electricity price for the lifetime of the PV system.

How to know if your company qualifies as electricity-intensive

The group of electricity-intensive companies includes companies that use at least 0.015 kWh per krona of turnover, excluding heating. Thus, it is not the sector in which you operate that determines whether you are eligible for support, but the amount of electricity your business requires.

The electricity cost support covers the period from October to December 2022 and only addresses only the part of the electricity costs that exceeds one and a half times the company’s average price in 2021. Applications are open between March 6 and April 17, 2023. This support will be paid in addition to the general electricity support for businesses. On the Energy Agency’s website, you can use their calculation tool to find out how much support your company is eligible for.

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