Power grid expansion

“Omställningen driver en omfattande anpassning av energisystemet En större andel väderberoende och decentraliserad elproduktion ställer nya krav på flexibilitet och balansering av elnäten globalt. Kapacitetsbrist och långa väntetider för anslutning till elnät har kommit att bli ett allt påtagligare hinder för utbyggnaden av förnybar energi.”

Annual report 2024A · The company itself

“Den snabba utbyggnaden av sol och vind har dock skapat utmaningar för elnätet, vilket medfört kapacitetsbegränsningar i vissa områden.”

Annual report 2024A · The company itself

“Hastigheten i utbyggnaden av förnybart begränsas än så länge kraftigt av avståndsregleringar, bristande nätkapacitet och långdragna nätanslutnings- och tillståndsprocesser.”

Annual report 2024A · The company itself

“Lettland och grannländerna nådde en viktig milstolpe i början av 2025 när det baltiska elnätet slutligen fysiskt kopplades från det ryska och synkroniserades med det europeiska nätet.”

Annual report 2024A · The company itself

“Att utveckla och optimera projekten tar tid och tillståndsprocessen löper ofta över många år. Projektens förutsättningar kan förändras längs vägen, till exempel på grund av osäkerhet kring anslutning till elnätet eller förändrade politiska förutsättningar.”

Annual report 2024A · The company itself

“Begränsningar i elnät eller elnätsanslutningar För att kunna realisera projekt för förnybar energi krävs att det finns tillgänglig kapacitet i elnätet och att det finns möjlighet att ansluta anläggningen till elnätet. I flera av de länder där Eolus är verksamhet finns begränsningar i elnätet och anslutningsmöjligheter vilket innebär att noggranna undersökningar behöver göras från tidigt skede i utvecklingsprocessen och därefter löpande under hela projektets löptid.”

Annual report 2024A · The company itself

“Elektrifiering och omställning till ett mer hållbart energisystem Elektrifieringen av samhället, tillsammans med den ökande andelen förnybar energi och decentraliserad energiproduktion, medför betydande utmaningar för dagens elnät. Den växande efterfrågan på elektricitet från transporter, industrier och hushåll kräver en utökning och modernisering av elnätet för att klara av den ökade energiförbrukningen.”

Annual report 2024A · The company itself

“Many of our customers, projects, and offerings depend on timely grid connection. Factors beyond our control, including regulatory and permitting requirements and delays, interconnection constraints, limited land for connection infrastructure, and system failures, may impede or prevent grid connection. If customers cannot obtain grid access or agreements to sell their electricity on reasonable terms and timelines, order timing and project milestones may be delayed.”

Annual report 2025A · The company itself

“Our Electrification segment includes grid solutions and power conversion & storage, which we collectively refer to as Electrification Systems, and Electrification Software, that provide products and services required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of generation to point of consumption. Several of the key offerings in this segment, for example, include our high-voltage direct current transmission (HVDC) and alternating current substation solutions, power transformers, switchgear, synchronous condensers, and our grid automation related products and services.”

Annual report 2025A · The company itself

“Equipment revenues increased at Electrification, primarily at Grid Solutions due to growth in switchgear, high-voltage direct current solutions, and alternating current substation solutions volume and at Power Conversion & Storage; and at Power, due to increases in Gas Power from Heavy-Duty Gas Turbine and Aeroderivative units deliveries and favorable price; partially offset at Wind, due to decreases at Offshore Wind from the nonrecurrence of revenues recorded on the settlement of a previously canceled project in the third quarter of 2024, project delays, and fewer nacelles produced in the year, and decreases at LM Wind Power due to lower volume from footprint reduction, partially offset by increases at Onshore Wind due to improved pricing and delivery of more units.”

Annual report 2025A · The company itself

“SEGMENT REVENUES AND EBITDA 2025 2024 2023 Grid Solutions $6,620 $4,957 $3,955 Power Conversion & Storage 2,049 1,676 1,548 Electrification Software $1,433 $679 $234 Segment EBITDA margin 14.9 % 9.0 % 3.7 % For the year ended December 31, 2025, segment revenues were up $2.1 billion (28%) and segment EBITDA was up $0.8 billion. Segment revenues increased $2.0 billion (26%) organically*, primarily at Grid Solutions due to growth in switchgear, high-voltage direct current solutions, and alternating current substation solutions volume and at Power Conversion & Storage.”

Annual report 2025A · The company itself

“Segment EBITDA increased $0.7 billion organically*, primarily due to volume, favorable price, and productivity at Grid Solutions.”

Annual report 2025A · The company itself

“Bara i Sverige uppskattar teknikkonsultbolaget Sweco att det krävs investeringar i elnäten på totalt SEK 945 miljarder fram till 2045. Merparten av investeringarna måste göras de närmaste tio–tolv åren för att kunna hantera kapacitetsökningarna och ersätta gammal, omodern infrastruktur.”

Annual report 2024A · The company itself

“Vattenfall Eldistribution, också ett av Sveriges största elnätbolag, investerar 2024–2027 totalt cirka 33,5 miljarder SEK för att stärka de svenska region- och lokalnäten.”

Annual report 2024A · The company itself

“Energibolaget Ellevio accelererar sina investeringar i modernisering och kapacitetshöjningar ocn planerar för en årlig investeringsnivå på SEK 7 miljarder 2027.”

Annual report 2024A · The company itself

“Även digitaliseringen med till exempel fler datacenter ställer krav på högre kapacitet i elnäten.”

Annual report 2024A · The company itself

“Division Kraft växte under året i Sverige men hade en svagare utveckling i Norge.”

Annual report 2024A · The company itself

“Vi erbjuder projektering och anläggningsarbeten inom områden som är kritiska för samhället som el, telekom, vatten och avlopp.”

Annual report 2024A · The company itself

“Med 25 års erfarenhet av utveckling och underhåll av kritisk infrastruktur är vi en ledande aktör i norra Europa inom infraservices, kraft och telekom. Vi finns med i hela värdekedjan från design och produktion till underhåll av kundernas anläggningar.”

Annual report 2024A · The company itself

“Projekterar, anlägger och underhåller eldistributionsnät i Norge och Sverige.”

Annual report 2024A · The company itself

“grid investments rising from approximately EUR 337bn annually today to more than EUR 800bn by mid-century, with a cumulative investment need of up to EUR 20tn.”

Annual report 2025A · The company itself

“NKT plays a critical role in the green transition as electrification and grid modernisation are prerequisites for a net zero society.”

Annual report 2025A · The company itself

“Solutions serves the global high-voltage power cable market.”

Annual report 2025A · The company itself

“Applications covers NKT’s medium-and low-voltage power cable offerings, as well as a minor position within telecom power cables.”

Annual report 2025A · The company itself

“Service & Accessories offers a variety of both offshore and onshore power cable accessories and services to maximise the utilisation, reliability, and long-term performance of power cable systems.”

Annual report 2025A · The company itself

“As electricity becomes the dominant energy carrier, power grids must expand and strengthen to accommodate higher loads and new patterns of consumption. This shift places power cable systems at the centre of the energy transition.”

Annual report 2025A · The company itself

“The expected installation of renewables translates directly into demand for onshore and offshore power cables. Strengthening connections between renewable-rich regions and centres of consumption will remain a central requirement for achieving climate ambitions.”

Annual report 2025A · The company itself

“Power grids are forecast to grow 2.4 times in length. Global transmission networks are estimated to reach 20 million circuit-km by 2060, and distribution grids will expand to 225 million circuit-km. Despite short-term constraints in Europe and North America where permitting and supply chain delays slow project delivery, global grids are set for sustained and widespread expansion through 2060. The North American grid is expected to grow threefold by 2060.”

Annual report 2025A · The company itself

“Global grid infrastructure is ageing and an estimated 40-50% of global infrastructure in mature markets is approaching the end of its design life. In parallel, developing regions, especially Southeast Asia, will experience rapid grid expansion to support growing economies and large-scale renewable integration. The combination of renewals and expansions is expected to lead to a significant increase in grid investments rising from approximately EUR 337bn annually today to more than EUR 800bn by mid-century, with a cumulative investment need of up to EUR 20tn.”

Annual report 2025A · The company itself

“In Solutions, the growth was driven by a high activity level and overall satisfactory project execution, while Applications benefitted from continued robust demand in the power distribution grid segment and additional medium-voltage capacity.”

Annual report 2025A · The company itself

“In 2025, NKT continued to play a key role by supporting the reinforcement, development, and interconnection of global power grids essential for powering modern life.”

Annual report 2025A · The company itself

“NKT facilitates the transmission of energy by connecting energy sources to the existing power grid. NKT enables the energy transition and electrification of society by supplying power cable systems for distribution and transmission of energy.”

Annual report 2025A · The company itself

“Aluminium er en nøkkelfaktor i det grønne skiftet Aluminium er en viktig faktor i det grønne skiftet, og mot 2030 ser Hydro en økende etterspørsel etter aluminium med lavt karboninnhold, spesielt til elbiler, solenergi og strømsystemer.”

Annual report 2024A · The company itself

“Furthermore, Nucor steel mills use significant amounts of electricity as 100% of our mills utilize EAF technology for our steel melting operations and the decarbonization of electricity generation may lead to high power costs and uncertainty in reliability. Significant changes to the regional power grids serving our steel mills and/or new rulemaking or legislation affecting the operation of these power grids may negatively affect our business, results of operations, financial condition and cash flows.”

Annual report 2025A · The company itself

“Grid Modernization—In June 2022, following a stakeholder proceeding, the BPU Staff issued a report containing findings and recommendations to update the BPU’s interconnection regulations and processes. In furtherance of the recommendations, in June 2024 the BPU amended its interconnection rules to speed up the interconnection of renewable resources to the distribution grid.”

Annual report unknown yearA · The company itself

“Substantial investments in generation, transmission and distribution will be required to meet current projections of increasing customer demand. Sustained distribution grid modernization will also be required to accommodate increased EE, EV infrastructure, increased penetration of distributed energy resources on the electric system, such as on-site solar generation and also potential deployment of energy storage, fuel cells, and distributed resources technologies.”

Annual report unknown yearA · The company itself

“Looking ahead, limitation on grid connections, availability and the cost of reliable supply of low carbon electricity in certain areas in Europe could become constraints or delaying factors in achieving the plans for conversion to electricity.”

Annual report 2025A · The company itself

“Möjliggöra utsläppsminskningar hos andra företag (möjlighet – marknader) I takt med att mer utsläppsintensiva branscher – som kraftbolag, allmännyttiga bolag inom vatten och avfallshantering, transporter och tillverkning – påskyndar sitt arbete för att minska sina utsläpp i Net Zero 2050-scenariot, görs betydande investeringar för att nå målen för utsläppsminskningar. Många av dessa investeringar, såsom användningen av smarta elnät och privata nät, är avhängiga av IKT-lösningar, vilket skapar stora möjligheter för Ericsson att erbjuda sina kommunikationslösningar till dessa branscher på medellång till lång sikt.”

Annual report 2024A · The company itself

“As AI infrastructure drives rapid load growth, Megapack helps to, among other things, increase utilization of existing generation and transmission capacity, resulting in a more efficient use of the electric grid.”

Annual report 2025A · The company itself

“Permitting, grid and storage critical for expansion In the short term, while progress is being made, the continued expansion of onshore wind requires grid infrastructure to be improved and permitting to be simpler, faster, and more predictable.”

Annual report 2025A · The company itself

“Inadequate grid expansion, ineffective auction design and permit delays could increase costs, hinder investments, and reduce the viability of wind deployment.”

Annual report 2025A · The company itself

“The build-out of modern transmission grids remains a gating factor for ramping up annual connections.”

Annual report 2025A · The company itself

“Trenden att modernisera, uppgradera och underhålla befintlig kapacitet har hållit i sig runt om i världen, vilket återspeglas i projekt för exempelvis livstidsförlängningar inom kärnkraft, uppgraderingar av vattenkraft och modernisering av elnät.”

Annual report 2024A · The company itself

“Utöver tillgängligheten på Volvokoncernens produkt- och tjänsteutbud finns det externa faktorer såsom förekomsten av en välfungerande laddningsinfrastruktur och tillgång till förnybar energiförsörjning som kommer att påverka övergången till elektriska fordon och maskiner.”

Annual report 2024A · The company itself

“Vi har etablerat cellcentric tillsammans med Daimler Truck för att kommersialisera bränslecellssystem för tunga fordon och andra användningsområden, vi arbetar tillsammans med Aurora inom självkörande fordon och vi är banbrytande med ett europeiskt högpresterande laddningsnätverk för tunga lastbilar och bussar som heter Milence tillsammans med Daimler Truck och Traton Group.”

Annual report 2024A · The company itself

“Lithium is a key component in products and processes used in a variety of applications and industries, which include lithium batteries used in consumer electronics and electric vehicles, power grids and solar panels, high performance greases and specialty glass used in consumer appliances and electronics, among other applications.”

Annual report 2025A · The company itself

“Further, the electric transmission system in our utilities’ service territories can experience constraints, limiting our ability to transmit electricity. The transmission constraints could result in an inability to deliver electricity from generating facilities, particularly wind and solar generating facilities, to the national grid, or to access lower cost sources of electricity.”

Annual report 2025A · The company itself

“Table of Contents •Electrical Distribution Systems, which includes a full range of low voltage and high voltage power, signal and data distribution solutions needed to deliver fully integrated, cost-optimized architectures.”

Annual report 2025A · The company itself

“(See Note 22) Cash Used in Investing Activities During 2025, cash used in investing activities totaled $18,777, consisting primarily of $20,842 (including interest during construction) for capital expenditures.”

Annual report 2025A · The company itself

“KMC Energy’s storage solution optimises the production of solar power on sites and provides a feasible solution to manage peak load periods. This creates stability and predictability for tenants, as well as reduces costs for operators of the power grid.”

Annual report 2023A · The company itself

“Due to pending grid upgrades expected in late 2025, Cloudberry can currently deliver 23.5 MW to the grid, compared to a total installed capacity of 32.4 MW, but the economic impact of this curtailment is expected to be minimal.”

Annual report 2024A · The company itself

“The project awaits the final grid sizing from Energinet prior to the final investment decision which is still expected in 2025. • Duvhällen wind project (SE-3): A key milestone in Cloudberry’s pipeline, the Duvhällen wind project secured a four-year permit extension, enabling continued development and optimization.”

Annual report 2024A · The company itself

“GREENELY AB (PUBL) Greenely är ett svenskt företag som erbjuder en energihanteringsplattform för konsu - menter, kombinerat med en timbaserad eltariff och virtuell kraftverksteknik (VPP) för bostäder. Företagets integrerade mobilapplikation gör det möjligt för hushåll att optimera sin energiförbrukning, minska kostnaderna och delta i nätbalanseringstjänster. Greenelys plattform låter konsumenterna effektivt hantera sin energianvändning samtidigt som de bidrar till den övergripande stabiliteten ielsystemet.”

Annual report 2024A · The company itself

“Capital expenditure, of which 355 338 Consumer Customers 232 229 Corporate Customers 112 106 International Software Services 11 2 Shares Total investments 371 452 Shares and business acquisitions 15 124 Reclassification on inventories 13 Leases Capital expenditure excluding leases, reclassification on inventories, shares and business acquisitions 280 295 Capital expenditure as % of revenue 12 13 The main capital expenditures were related to the capacity and coverage increases in 5G networks, fiber and other networks, as well as IT investments.”

Annual report 2025A · The company itself

“ENERSENSE | KESTÄVYYSRAPORTTI | 40 SBM-1 – Strategia, liiketoimintamalli ja arvoketju Enersense toimii asiakkaidensa elinkaarikumppanina energiansiirrossa ja -tuotannossa, teollisuuden energiasiirtymässä, tietoliikenteessä ja datakeskuksissa. Yhtiö suunnittelee, rakentaa, kunnossapitää ja modernisoi kriittistä infrastruktuuria Pohjoismaissa ja Baltiassa. Yhtiöllä on kolme liiketoimintayksikköä: Power, Energy Transition ja Connectivity.”

Annual report 2025A · The company itself

“Power-liiketoimintayksikkö tarjoaa ratkaisuja yhteiskunnan sähköistymiseen ja uusiutuvaan energiaan asiakkailleen, jotka toimivat energiantuotannossa tai -siirrossa sekä datakeskuksissa. Liiketoimintayksikön projekteja ja palveluita ovat voimansiirtoverkkojen, sähköasemien, sähkövarastojen sekä tuulivoima- ja aurinkopuistojen suunnittelu, rakentaminen ja kunnossapito.”

Annual report 2025A · The company itself

“Datakommunikation för övervakning och styrning av elnät.”

Annual report 2024A · The company itself

“Affärsenhet Westermo Westermo utvecklar robusta och säkra kommunikationslösningar för krävande miljöer med främsta fokus på tågnätverk där affärsenheten är global marknadsledare inom sin nisch, för järnvägsinfrastruktur och för energiområdet.”

Annual report 2024A · The company itself

“We are pursuing investment opportunities in electric transmission facilities, distributed generation and other clean-energy infrastructure, including interconnection facilities. The development of these projects involves numerous significant risks including federal, state and local permitting and regulatory approval processes, scheduling or permitting delays, increased costs, tax strategies and changes to federal tax laws, new legislation impacting the industry, including clean energy programs, economic events or factors, environmental, community, and customer affordability concerns, design and siting issues and difficulties in obtaining required rights of way.”

Annual report 2025A · The company itself

“Vuonna 2025 GRK käynnisti Power liiketoiminnan, joka keskittyy pääosin sähkön siirtoverkkojen (110/400kV) ja sähköasemien rakentamiseen sekä uusiutuvan energian rakentamiseen.”

Annual report 2025A · The company itself

“This includes utility transmission & distribution (T&D) components such as arresters, insulators, connectors, anchors, bushings, enclosures, cutouts and switches. The Utility Solutions segment also offers solutions that serve The Edge of the utility infrastructure, including smart meters, communications systems, and protection and control devices.”

Annual report 2025A · The company itself

“Husqvarna Group grundades 1689 och har utvecklats till en global marknadsledare inom innovativa produkter och lösningar för skogs-, park- och trädgårdsskötsel. Produkterbjudandet omfattar robotgräsklippare, batteri- och bensindrivna motorsågar, trimmers, åkgräsklippare samt bevattningslösningar. Husqvarna Group är även ledande inom utrustning för sågning och borrning i betong, golvarbeten samt diamantverktyg för byggindustrin.”

Annual report 2024A · The company itself

“On the other hand, if I should mention a difficulty Magnora observed during the year, I would point at the long timespan for commissions and grid connections in general, which is a shared challenge among the participants in this market.”

Annual report 2024A · The company itself

“Hafslund also owns half of Norway’s largest grid company, Elvia, and invests in heating, cooling, carbon capture and offshore wind.”

Annual report 2024A · The company itself

“Transmission is essential for delivering electricity from generation sources to distribution systems and end users. Investments in transmission infrastructure are driven by reliability requirements, generation integration and grid modernization initiatives, with returns based on allowed equity and debt structures rather than commodity price fluctuations.”

Annual report 2025A · The company itself

“Kvartal 2 Aibel och Hitachi Energy ingår ramavtal med RWE Ramavtalet, som tecknas för att påskynda utvecklingen av havs baserad vindkraft, är en förlängning av kapacitetsreservationsavtalet (CRA) som tecknades i november 2023. Det reserverar ingenjörs- och tillverkningskapacitet för att utveckla tre stora HVDC-projekt. Projekten möjliggör överföring av el från vindkraftsparker till havs till anslutningspunkter på land.”

Annual report 2024A · The company itself

“Tillväxten inom Rejlers division Sustainable Energy Solution drivs av utmaningar inom energimarknaden och pågående energitransformation, vilket skapar efterfrågan på nätverkstjänster såsom elnät, energimätning, telekom och säkerhet.”

Annual report 2024A · The company itself

“Energisegmentet väntas gynnas av betydande infrastrukturinvesteringar de närmaste åren.”

Annual report 2024A · The company itself

“Vi har också experter på elnät, kraftledningar samt överförings- och distributionssystem för transport av el till företag och konsumenter.”

Annual report 2024A · The company itself

“Vindkraftverken ligger ofta långt ifrån elkonsumenterna. Därmed behöver helt ny infrastruktur byggas upp.”

Annual report 2024A · The company itself

“Vindkraftverken ligger ofta långt ANVÄNDNINGSOMRÅDEN OCH VARUMÄRKEN MASSALEVERANSER, KTON SPECIALITETER Rottneros massor används i många specialapplikationer.”

Annual report 2024A · The company itself

“Koncernen är även globalt ledande inom E-massa, en mycket vältvättad och ren kemisk massa med en unikt låg elektrisk konduktivitet, eller ledningsförmåga. E-massan används till isolationsmaterial, såsom kondensatorpapper eller i högspänningskablar placerade på havsbotten. Efterfrågan på E-massa har ökat väsentligt sedan 2020, främst drivet av ombyggnaden och moderniseringen av elnäten kopplad till omställningen till förnyelsebara energikällor.”

Annual report 2024A · The company itself

“Serving around 160 clients, Scanfil produces approximately 10,000 products annually, ranging from medical devices to heat pumps and recycling systems.”

Annual report 2025A · The company itself

““Manufacture, installation, and servicing of high, medium and low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigation”: Scanfil manufactures a number of products fulfilling the substantial contribution criteria for a selection of valid subsections. Those subsections being: a) electric vehicle charging stations and supporting electric infrastructure for the electrification of transport that is installed primarily to enable electric vehicle charging; c) low voltage electrical products, equipment and systems, that increase the controllability of the electricity system, and contribute to increasing the proportion of renewable energy or improve energy efficiency; e) demand response and load shifting equipment, systems and services that increase the flexibility of the electricity system and support grid stability.”

Annual report 2025A · The company itself

“Further, the proliferation of renewable projects has resulted in a large volume of interconnection requests submitted to grid operators, including the markets in which we operate, resulting in significant delays to the approval process and estimated completion dates for our projects and others. FERC and regional ISOs are working to address these backlogs, including with regulatory rule changes, changing the interconnection process, the impacts of which are currently unknown because the changes have only been partially implemented.”

Annual report 2025A · The company itself

“The substantial majority of our retail operations depend on transmission and distribution facilities owned and operated by unaffiliated utilities to deliver the electricity that we sell to our customers. If transmission capacity is inadequate, our ability to sell and deliver electricity may be hindered and we may have to forgo sales or buy more expensive wholesale electricity than is available in the capacity-constrained area or, with respect to capacity performance in PJM and performance incentives in ISO-NE, we may be subject to significant penalties.”

Annual report 2025A · The company itself

“For some of our PPAs, the net amount paid by our PPA counterparties is impacted by wholesale prices at a market hub location different from the location of our renewable site. Systemic shortfalls and disruptions in transmission capacity can cause congestion between the two locations, which along with other factors, can cause price disparity between the market hub and site. This price disparity, known as basis risk, can be significant at times.”

Annual report 2025A · The company itself