Gotland’s Grid Innovation: A Power-Based Tariff to Maximize Local Grid

As electricity systems become more dynamic and decentralized, traditional grid fee structures are struggling to keep up. Static tariffs based on energy consumption or peak contracts fail to reflect the real-time impact of users on local grid congestion. This white paper explores the case for dynamic, capacity-based grid tariffs—pricing models that vary with time and location to better align user behavior with system needs. Through a real-world pilot in Gotland, Sweden, we show how forecasting, localized price signals, and simple implementation can drive both fairness and efficiency. The end goal: lower operational costs, improved power quality, and a smoother path to a more flexible energy future.