Hydropower provides energy security and grid stability for Sweden, which has long relied on the low-carbon energy source for much of its electricity. Industrial expansion, particularly in northern Sweden, is expected to drive a substantial increase in energy demand, leading to more demand for hydropower. At the same time, more renewable energy will be added to the Swedish electricity grid and beyond, and hydropower will play a key role in stabilizing the grid to make space for wind and solar power.

With this increase will come more impact on river ecosystems, particularly through hydropeaking, i.e. where hydropower operation is optimized creating frequent and large changes of river flow, which is of significant concern for environmental impacts. Balancing hydropower production with the preservation of biodiversity and ecosystem health is essential and part of the policy priorities of the EU and Sweden.

To ensure the long-term success of the hydropower industry, efforts need to be emphasized to improve efficiency, promote biodiversity and incorporate community perspectives. Additionally, strategies for adapting to a changing energy landscape, such as accommodating fluctuating renewable energy sources, are vital.