Let there be light – Swedish tech­no­logy secures grid sta­bi­lity

Electricity is something we take for granted—until it’s no longer there. On April 28, 2025, for example, a massive power outage plunged large parts of Spain and Portugal into darkness for more than ten hours, cutting off internet and phone connectivity, halting public transport, and disrupting businesses.

According to a report from the Spanish government, the outage began with a voltage surge in southern Spain. That surge triggered local grid failures, which then led to a chain reaction of protective shutdowns. Voltage surges can occur when excessive voltage overloads equipment; protective systems respond by automatically shutting down parts of the grid to prevent further damage.

“The blackout served as a stark reminder of the pressing need to modernise and upgrade power grids to ensure network stability in the wake of soaring electricity demand and the large-scale addition of renewable, intermittent energy sources,” says Stefan Reisacher, CEO at Linxon, a global grid technology provider with a strong presence in Sweden, specialising in high-voltage electrical substations and other turnkey solutions for tomorrow’s transmission grids.

“If you have wind or solar power generation in the grid, you have less resilience because of the intermittent nature and lack of inertia of these sources—unlike the steady supply from the turbine of a thermal power generator. Peaks and lows become more pronounced, which puts additional strain on the network,” Reisacher adds.

Why modern grids depend on electrical substations

An electrical substation is a connection node in the power grid where power is switched and voltage transformed from high to low (or vice versa), making it a vital element enabling the efficient transmission and distribution of electricity. Substations function as silent but critical nerve centres of modern society—sitting between power generation plants and end-users to ensure electricity is delivered safely and reliably.

This is ageing infrastructure that needs robust financing to upgrade.

The global market for electrical substations is experiencing accelerated growth and is estimated to exceed USD 100 billion this year. For good reason, says Reisacher: “We’re getting to a point where the reliability of the power supply even in developed countries is no longer as secure as it was 10–20 years ago.”

As demand increases, new equipment is required and legacy networks must be modernised. One example is Iraq, where Linxon was awarded a contract to refurbish three 400-kV substations under a USD 500 million financing framework backed by EKN and with funding from SEK.

“This is ageing infrastructure that needs robust financing to upgrade. Through this partnership, we’re extending grid life by 25 years, reducing carbon emissions, and strengthening energy security for millions of people,” says Reisacher.

How EKN strengthens bankability in energy transition projects

Given the gargantuan global price tag for power grid modernisation, multi-source financing—including export credit agencies (ECAs)—is crucial if the energy transition is to succeed in time, Reisacher argues.

It’s not just about securing funds; it’s about making projects bankable, resilient, and sustainable.

“Energy transition projects are capital intensive and come with long payback periods. That’s where project financing—and especially export credit agencies like EKN—play a vital role. It’s not just about securing funds; it’s about making projects bankable, resilient, and sustainable. EKN support provides a quality stamp that attracts additional financiers,” he says.

One example is the construction of a new electrified railway in Tanzania, where Linxon supplies grid solutions that power the trains, supported by EKN financing. The de-risking was instrumental in securing funding, as was EKN-led sustainability vetting.

“Having EKN onboard helps ensure that preconditions such as global and national regulations and standards—covering environmental and social considerations as well as health and safety—are being met,” says Reisacher. He also points to integrity risks in some markets:

“Properly financed projects with transparent money flows help safeguard integrity. EKN support lets us enter new projects with a high degree of confidence without exposing the company to undue risk.”

Ease pressure on state budgets

Moreover, Reisacher believes ECA financing can also help high-income countries ease pressure on state budgets. “Countries like Germany are interested in ECA financing, given the significant investments needed in grid infrastructure. Even wealthy countries like Saudi Arabia are signing framework agreements with different ECAs.”

Linxon is interested in exploring new, dynamic markets as the need of electricity supply is expanding globally. “We’re looking for new opportunities together with Team Sweden members EKN, SEK and Business Sweden. Being able to offer financing is a significant differentiator for us in most markets.”