Swedish DSO signs landmark smart grid agreement

Major partnership propels Swedish smart grid

The agreement promises fewer and shorter power outages, better customer control of electricity usage, and important steps enabling the energy transformation and electrification of the Swedish society. 

In a landmark agreement signed by Ellevio, one of Sweden’s largest electricity distribution companies, Malmö-based One Nordic and French technology giant Sagemcom, the partnership will see over one million customers supplied with next generation electricity meters.

“Ellevio will be one of the first Swedish electricity distribution companies to go to the next stage in the development of tomorrow’s smart, customer-oriented electricity meter systems. Modern meters offer both greater supply reliability and make it easier for those aiming to produce their own electricity in the future,” says Johan Lindehag, CEO at Ellevio.

…960,000 of Ellevio’s customers will have a new meter installed before the end of 2023. 

In the accelerating transformation of the Swedish energy system, smarter grids play a key role. The partnership will enable Ellevio to spearhead the implementation of one of the most crucial pieces of the puzzle: a modern electricity meter system.

The first new meters will be installed during a pilot project in Stockholm between April 2020 and September 2020, but all 960,000 of Ellevio’s customers will have a new meter installed before the end of 2023. 

“This is a highly important and strategic project for our company and a vital component of the development of low-carbon infrastructure. With a new meter system we can tackle society’s energy challenges as well as provide Ellevio’s customers with better information about their electricity usage,” says Lindehag.

For the household customer, future electricity consumption will be easier to adapt to times of the day when it is most beneficial. The smart grid will also provide Ellevio with information essential to strengthening the electrical grid, which will result in fewer and shorter power outages. In addition, a new system will dramatically improve the ability to meet increasing demand for energy in a society aimed at electrification and low-carbon economy.

The agreement with One Nordic and Sagemcom will be in place for ten years (with the possibility of extending the agreement for a maximum of six years) and covers the provision of just over one million smart meters, including installation, a communication solution, implementation, and associated services.

“Alliances and partnerships are valued highly by Ellevio, and this permeated the procurement process. Complex infrastructure programmes such as this necessitate strong and transparent cooperation in order to succeed, and we are both pleased and enthusiastic about our choice of One Nordic and Sagemcom,” says Lindehag. 

Procurement process

Johan Svensson, programme manager AMM at Ellevio, is responsible for the meter exchange project and explains there was a very comprehensive agreement of over one thousand pages ahead of the request for proposals.

Ellevio sent out a draft agreement in all parts at the time of the inquiry.

“This lead to the negotiation process being both shortened and everyone involved really understands – even before the agreement is signed – what is included,” Svensson says.

He emphasises that it is crucial for successful cooperation and partnerships in the future.

Svensson says the procurement process has gone even better than planned:

“The feedback that we got from the market was that the procurement was handled in a very professional way and we were given the same feedback from the players who participated in the procurement,” he concludes.