According to the Electricity act, an owner of a production facility should get financial compensation from the grid owner for the benefits it has on the grid. The compensation for the grid benefit should correspond to the reduced costs of fees and reduced costs of losses. The Swedish Energy Markets Inspectorate (Ei) uses a method called Method 2020 for calculating grid benefit compensation when there is a disagreement between a grid owner and the owner of a production facility. The method should be objective, non-discriminatory, and transparent. The aim was to analyse how Method 2020 meets the requirements of the Electricity act regarding objectivity and non-discrimination as well as being compatible with efficient grid utilization and effective production. The goal was to analyse if the method creates incentives for efficient grid utilization and make suggestions for improving the method. The thesis explored how different actors perceive Method 2020 through interviews with Ei, DSOs, and the Swedish TSO. The perception mainly differs regarding whether the reduced costs and how they are calculated in Method 2020 should correspond to forecasts or actual outcomes. The opinions differ concerning guaranteed power and if it should be part of the grid benefit compensation, which is also related to the time perspective. Furthermore, the thesis explored if all energy sources receive the same compensation and if it is possible to use a generalised compensation for all energy sources. This was executed by combining different grid characteristics, production units, and grid fees in Method 2020. There is significant variation in compensation for hydro, wind, and CHP units in grids dominated by production, consumption, or a mix of both, so that no general compensation is possible. However, compensation for PV units vary very little and should therefore be possible to have a standardised compensation, preferably based on time of use. The compensation will differ geographically due to grid fees. The results showed that Method 2020 is unjust towards production units that are large compared to the grid's transmitted energy. It is therefore suggested that impact of the production unit should be removed from the interconnection point. This will create better incentives for efficient grid utilisation.

The Swedish energy markets inspectorate (Ei) regulates the Swedish DSOs revenue cap, to ensure reasonable prices, efficiency, and quality of supply towards the end users. In combination with directives from the European Union and Sweden's environmental goal, Ei implemented efficient grid utilization to the DSOs revenue cap in 2016. The efficient grid utilization can be divided into two incentives: load flow and network losses. Criticism regarding the load flow incentive, and the indicator used to calculate it, has been raised from the industry. The purpose of this degree project was to investigate the possibilities of a new indicator that also could be affected by the DSOs actions. The project identified four main indicators to test, weighted load factor, utilization factor, adjusted utilization factor and a utilization factor that incorporates all local production units. The indicators were calculated with data from a regional and local grid, provided by the Swedish DSO Ellevio. Other parameter changes such as peaks and seasonal based calculations were also tested. To see the impact DSOs could have on the indicator, with today's regulations, was detected to be through load shaving and shifting, demand side management (DSM). MATLAB was used to test the impact DSM had on the indicators. Further, a load prediction for the years 2023–2035, based on provided historical data, was executed to test the indicators long-term outcome. The project concluded that the regional grid had little to non-impact on the indicators with DSM whilst the local grid resulted in high increased outcome for most indicators. The project continues to conclude to separate indicators for the regional and local grid, to better represent the two grids characteristic and purpose in Swedish society. The adjusted utilization factor was proposed for the regional grid, due to its non-negative impact from installing renewable energy resources, and the weighted load factor for the local grid due to being highly affected by DSM. Lastly, the project concluded that the indicator needs to be changed and further developed for regional DSOs, for them to have the opportunity to affect it.