How Does a Swedish Energy Company Profit?

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Some people are still confused about how the energy companies in Sweden make their profits; of truth, the energy industry generates so much revenue for the Swedish government, but how do they do it?  If you are someone who closely monitors the energy industry in Sweden, the data shows that the industry has been making massive gains for the country’s economy.

Even people’s opinions about the energy companies in the country on ReviewsBird show that it is one of the best industries to work in, but how do they get the money to pay their workers such huge salaries?

In this guide, you will learn how the energy sector of Sweden operates and how it can generate so much profit for the development of the Swedish economy and people.

1. Selling to Another Country

One of the major ways energy companies in Sweden make money is through selling energy to neighboring countries; the major country they sell their energy to is Norway. The generation of energy resources in Sweden comes mostly from the northern part of Sweden, which is then taken down to Norway in exchange for money.

Top energy companies in Sweden, such as Vattenfall, reported a 54% increase in the amount they earn from selling their energy resources to other nordic countries, such as Finland and Norway. With the sales generated from selling to different parts of the world, Sweden’s energy companies help improve the country’s economy. Most energy sold to these countries are gas and electricity; these two utilities are essential for survival.

2. Generation and Production of Electricity

Most of the production and generation of energy is done by the government, but private companies can also decide to carry out this activity on a smaller scale.

The only disadvantage to the company running this type of energy business is that they won’t be able to make as much profit as the government. The target customers of this type of company are not from other countries as compared to government-owned plants but private businesses and individuals.

3. Transmission and Distribution of Energy

Although this is almost similar to the first form of profit generation among energy companies in Sweden, it involves different types of businesses.

For energy transmission, the companies involved provide services that can transmit energy, such as electricity, from a far distance. Transmitting electricity through a far distance might include circulating electricity in different parts of Sweden.

The distribution of energy mostly involves companies that offer the same service as the transmission companies but in a more personalized manner. For instance, if a transmission company transmits electricity to Stockholm, a distribution company ensures that such energy is distributed to different parts of Stockholm. The end product of these services is profit, as the government and individuals pay for them before they can be eligible to use them.


It is often hard for those interested in the industry to understand how the government and companies generating energy can make huge sums of money. But by producing, transmitting, and distributing energy and selling it to other countries, the energy sector generates profit.