Meet Primrock’s Board of Directors: Ulla Sandborgh

[Stockholm 21 Nov 2023] Integration of the European electricity market is currently questioned in the Swedish political discussion. We asked Primrock Board Member Ulla Sandborgh to provide some perspective on these important issues and the challenges ahead.

Primrock: You have extensive expertise and experience in working with the regulation of the European electricity market. What are the most important contributions Sweden can make to the European Union’s internal market for electricity?

Ulla Sandborgh: Seen over the year, Sweden has a net surplus of electricity and can therefore export to areas with a worse electricity production mix than Sweden, which has a mix that is 98% fossil-free. Sweden is well connected with surrounding countries, which favors exports but also imports when Sweden needs it. Sweden and Norway have a joint responsibility for balancing the Nordic system and have good experience in doing so via parties responsible for balancing and through suppliers of various products on the balancing market. This experience continues to play an important role in the development of the EU's common electricity market.

Primrock: Russia's invasion of Ukraine has brought significant challenges to the EU energy markets and some non-trivial cohesion between EU countries. How well prepared is Sweden for the stress that climate change and the geopolitical threats place on the energy system in the short and medium term?

Ulla Sandborgh: Sweden is normally a net exporter of electricity. We now see an increasing demand within the country when new industry is added and older industry changes to more climate-friendly methods for their production. Electrified transport also increases the need for access to more electricity. Sweden's use of natural gas is relatively low compared to other countries in Europe that use gas for electricity production and heating. In Sweden, many cities have district heating. The availability of, for example, Russian natural gas affects the price of electricity throughout Europe. Last year we saw how high electricity prices affected our use of electricity. It will continue to be good for both the climate and the wallet every day, but the most important thing is to cut peaks in the electricity system, i.e. when the load is greatest, for example during windless, cold winter days.

Primrock: Is there a conflict between electrification of the EU and the need to manage an increased geopolitical risk, mainly from Russia?

Ulla Sandborgh: Not necessarily. For instance, the Baltic countries' dependence on Russian energy has been reduced through conscious investments and solutions as a result of the EU and the Baltic countries striving to synchronize the Baltic electricity grids to the continental European grid by 2025. A number of new investments have been financed, including battery systems, new transmission lines and a new connection to Poland. The transition from using Russian gas to other solutions will take time to implement, not least when Europe is in a recession.

Primrock: You have worked extensively in both the private and public sectors, what contributions can private and public actors make to facilitate a desirable expansion of the electricity system?

Ulla Sandborgh: Capital will be needed for the development of innovative solutions that benefit the electricity system. Transition to a new energy system requires companies that grabs opportunities and can invest in new innovative solutions. It is not only grid investment that is needed, but other new technical solutions are also part of the solution. The public sector needs to act faster and more predictably, for example in matters of permits and allocation of capacity. New solutions also require faster regulatory adaptation and change.

Primrock: You have seen challenges when acting with existing structures and regulations in your senior positions both in business and government agencies. Which factors are most important for cooperation between the private and public sector to work well in a long-term perspective for electricity supply?

Ulla Sandborgh: Transparency and the assignment to some government authorities need to be modified. Cooperation should have greater weight in instructions and other governing documents. The principle of equal treatment is important but can delay the development of the electricity system. Today we talk a lot about delays to make new connections to the grid. It is possible to solve these challenges with new solutions through more collaboration. In the long term, priorities must also be made based on the needs of the system.

Primrock: Finally, you tirelessly continue to work on major system issues and challenges. What is it that you find particularly exciting about the electricity system and the electricity market?

Ulla Sandborgh: The most exciting thing is to be part of the change that is much needed. A change that requires new thinking, collaboration and looking at the whole. We have long talked about how the local solutions become part of the whole. Now it starts to happen for real. We should not overinvest in old solutions, but instead be innovative and look at opportunity costs when decisions are made. The electricity market is questioned when we have high electricity prices. The good thing about it is that there will be more solutions that ultimately benefit electricity users.

Short Biography

Ulla Sandborgh (1960) has extensive experience from the IT and telecom industries as well as the power grid and energy markets. Ulla Sandborgh was the director general and CEO of the Swedish transmission system operator, Svenska kraftnät, 2017-2019. Prior to her position as director general and CEO, she worked five years as Executive Vice President for the Marketing and System Development Department at Svenska kraftnät, 2012-2017. During the years 2014–2016, she was also chair of the Pan-European MRC project for pan-European Day-Ahead Coupling. Ulla Sandborgh worked 2006-2012 for Fortum Värme as site manager for the cogeneration plants in Värtahamnen in Stockholm, sales manager for large industrial customers and as manager of product and service development. Ulla Sandborgh is an elected member and vice chair of the Electrical Engineering Section at The Royal Swedish Academy of Engineering Sciences (IVA).