France and Sweden Lead Opposition Against EU Electricity Grid Revenue Sharing

France and Sweden are leading a pushback against EU proposals that would require national power grid operators to share congestion revenues, arguing it hampers local infrastructure investment.

By: AXL Media

Published: Feb 26, 2026, 3:12 AM EST

Source: Information for this report was sourced from Politico Europe

The Dispute Over Congestion Revenues

Congestion revenues are collected by transmission system operators (TSOs) when the demand for cross-border power exceed the capacity of the interconnectors. Under current EU discussions, there is a push to redistribute a portion of these profits to help less-developed regions upgrade their grids. France, home to Europe's largest nuclear fleet, and Sweden, which possesses significant hydropower resources, frequently act as major exporters and thus generate substantial congestion income. Both nations maintain that forcing them to share this revenue would create a financial deficit for their internal energy transitions.

Sovereignty and Infrastructure Investment

The French government has emphasized that the modernization of its domestic grid is a matter of national industrial sovereignty. French officials argue that domestic consumers, who ultimately pay for the grid through their bills, should be the primary beneficiaries of any surplus revenues generated by the network. Similarly, Sweden has expressed concerns that a mandatory sharing mechanism would reduce the incentive for countries to invest in their own interconnectors if the resulting profits are funneled elsewhere in the EU.

The Commission's Vision for a Unified Grid

The European Commission argues that a more integrated European grid is vital for hitting 2030 climate targets and reducing reliance on fossil fuels. By sharing revenues, the Commission hopes to accelerate the construction of "missing links" in the European energy map, particularly in regions that struggle to finance expensive cross-border projects. Supporters of the proposal suggest that since the energy market is interconnected, the financial benefits of that market should be used to strengthen the entire system's resilience.