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Why Sweden is Betting Against the Traditional Grid with EnergyNet's Router System

Power line against cloudy sky; digital cables connect to wind turbines, solar panels, and town under aurora borealis, suggesting energy flow.

Abstract

As global electrification accelerates, the centralized power infrastructure of the 20th century faces an existential capacity crisis. This article explores "Project Energy Society" (Energisamhället), a Swedish initiative led by IT pioneer Jonas Birgersson, which proposes a fundamental architectural shift in energy distribution. By applying the logic of packet-switched data networks to electricity, the project aims to replace the synchronous, scarcity-based "Plain Old Grid System" (POGS) with asynchronous, software-defined Direct Current (DC) microgrids. Through an analysis of the pilot project in Lund, the technical specifications of the "Energy Router," and the economic disruption of flat-fee pricing models, we examine how this "Internet of Energy" seeks to deliver abundant, resilient, and affordable power.

Introduction: The Architecture of Scarcity

The modern electrical grid is a marvel of synchronous engineering, yet it remains tethered to a design philosophy established over a century ago. Often referred to by proponents of the Energy Society as the "Plain Old Grid System" (POGS), this infrastructure operates on a circuit-switched model. In this paradigm, supply must match demand in real-time, millisecond by millisecond, across a vast, synchronized alternating current (AC) network. This rigid synchronization makes the grid inherently fragile; a deviation in frequency—caused by a sudden drop in wind generation or a spike in consumption—can cascade into system-wide instability.1

Sweden, facing a projected doubling of electricity demand by 2045 due to the electrification of transport and industry, stands at the forefront of this challenge.3 The conventional solution suggests a massive, capital-intensive expansion of transmission lines—a process measured in decades. However, Jonas Birgersson, the entrepreneur who revolutionized Swedish broadband in the 1990s, argues that the problem is not a lack of capacity but an obsolete architecture. Just as the telecommunications industry transitioned from circuit-switched telephony to packet-switched internet, Birgersson contends the energy sector must undergo a similar "Internetification".4

From Fiber to Electrons: The Historical Context

To understand the trajectory of Project Energy Society, one must situate it within the technological history of Sweden. Jonas Birgersson rose to prominence as the founder of Framtidsfabriken (Framfab) and Bredbandsbolaget (The Broadband Company).6 In 1999, he challenged the state-owned telecom monopoly by rejecting the incremental upgrade of copper wires (ISDN/ADSL) in favor of a radical new infrastructure: fiber optics (FTTH). His philosophy was characterized by the "de-constructed value chain," which separated physical infrastructure from service provision, enabling flat-rate pricing and unlimited data abundance.4

Today, through his company ViaEuropa, Birgersson applies this exact logic to the energy sector. He posits that the current energy crisis mimics the bandwidth bottlenecks of the late 1990s. The incumbent grid operators, like the old telecom monopolies, attempt to manage scarcity through variable pricing (kWh billing) and peak-load taxes. In contrast, Project Energy Society aims to create an infrastructure of abundance, where local production and storage are robust enough to offer energy at a low, fixed monthly fee, rendering the variable cost of a kilowatt-hour irrelevant.7

The Physics of the Switch: Circuit vs. Packet

The theoretical core of Project Energy Society is the transition from synchronous AC distribution to asynchronous DC networking. This is not merely a change in current type but a fundamental reimagining of how energy flows.

The Limits of Synchronicity

In the traditional AC grid, every generator and load is magnetically coupled. The inertia of a spinning turbine in a nuclear plant in northern Sweden is physically tied to the rotation of a washing machine in the south. This "circuit-switched" connection requires the grid to act as an infinite buffer, absorbing all volatility. As intermittent renewable sources like wind and solar replace steady thermal generation, maintaining this synchronization becomes exponentially more difficult and expensive.9

The Asynchronous Solution

Project Energy Society introduces the EnergyNet, a system that "packetizes" energy. Instead of a continuous, synchronous flow, energy is treated as discrete packets that can be buffered (stored), routed, and delivered upon request. This is achieved through three primary components: the Energy Local Area Network (ELAN), the Energy Router, and the Energy Protocol (EP).5

Feature

Plain Old Grid System (POGS)

Project Energy Society (EnergyNet)

Switching Model

Circuit-Switched (Continuous connection)

Packet-Switched (Buffered delivery)

Current Type

Alternating Current (AC)

Direct Current (DC) Microgrids

Synchronization

Synchronous (50/60Hz frequency lock)

Asynchronous (Galvanic separation)

Buffer Location

The Grid (Expensive spinning reserves)

Local Batteries (Distributed storage)

Control Logic

Centralized (Top-down dispatch)

Distributed (Peer-to-peer routing)

Pricing Model

Variable (Per kWh + Spot Price)

Fixed (Capacity Subscription)

The Energy Router and Galvanic Separation

The critical hardware enabling this architecture is the Energy Router. Unlike a standard transformer, which passes frequency disturbances through to the building, the Energy Router utilizes power electronics to create galvanic separation. It rectifies the incoming grid AC into DC, storing it in a local battery buffer before inverting it back for use or keeping it as DC for the building's internal network.5

This separation decouples the local microgrid from the national grid's frequency. The building becomes an active, programmable node rather than a passive load. It can draw power from the grid at a constant, optimal rate to charge its batteries, regardless of the chaotic spikes in local consumption caused by EV chargers or induction stoves. This "peak shaving" effect essentially flattens the demand curve, masking the volatility of modern consumption from the fragile national grid.2

Engineering the DC Microgrid

Within the property, Project Energy Society advocates for a DC Microgrid (Energy Local Area Network or ELAN). The rationale is grounded in the physics of modern appliances. LED lighting, consumer electronics, variable-frequency heat pumps, solar panels, and batteries all operate natively on direct current. In a standard AC building, power undergoes multiple conversion steps (AC to DC, DC to AC), with each step incurring thermal losses of 5-10%.11

By implementing a high-voltage DC backbone (typically 380V or 760V), the system eliminates these redundant conversions, improving overall energy efficiency by up to 20%. However, this shift introduces technical challenges, primarily regarding safety. DC lacks a "zero-crossing" point—the moment where AC voltage momentarily drops to zero, allowing arcs to self-extinguish. A DC fault can sustain a dangerous plasma arc. To mitigate this, the EnergyNet relies on software-defined protection. The Energy Router monitors current flow at microsecond intervals; if a fault pattern is detected, solid-state breakers interrupt the circuit instantly, far faster than traditional thermal fuses could react.11

The Lund Pilot: CoAction Brunnshög

The transition from theory to practice is currently underway in the Brunnshög district of Lund, Sweden. This location is symbolic, sitting within 500 meters of the research centers that developed Bluetooth and the artificial kidney.14 The pilot, part of the Vinnova-funded CoAction Lund initiative, involves a collaboration between ViaEuropa, the municipal housing company LKF, and commercial property owner Wihlborgs.15

System Configuration

The pilot physically connects two distinct properties—an office building and a student dormitory—via a dedicated DC cable, creating an Energy Wide Area Network (EWAN). Both buildings are equipped with rooftop solar arrays and basement battery storage, with the latter often housed in repurposed telephone exchange rooms—a nod to the infrastructure recycling advocated by Birgersson.14

Operational Dynamics

The connectivity allows for energy sharing that defies traditional boundaries. On weekends, when the office building is dormant, its solar surplus is routed to the student housing, where demand remains high. Conversely, the student dormitory's battery reserves can support the office during peak weekday hours. This peer-to-peer transfer occurs "behind the meter," avoiding the transmission losses and fees associated with the public grid. Early qualitative results from the pilot demonstrate the feasibility of this "energy abundance," proving that interconnected properties can significantly reduce their reliance on external power.14

The Economic Disruption: Frequency as Currency

Perhaps the most provocative aspect of Project Energy Society is its funding model. Birgersson proposes that the infrastructure can effectively pay for itself, allowing tenants to enjoy low, flat monthly fees. This is made possible by monetizing the system's flexibility in the Ancillary Services market, specifically the Frequency Containment Reserve (FCR).18

The FCR Revenue Stream

Transmission System Operators (TSOs) like Svenska kraftnät must maintain the grid frequency at exactly 50Hz. They pay a premium for "reserves" that can instantly inject or absorb power to correct deviations. Batteries are ideal for this task due to their sub-second response times. In the EnergyNet model, the local batteries serve a dual purpose: they buffer local residential loads and simultaneously bid their spare capacity into the FCR market.20

This creates a "double-dip" economy. The batteries reduce the property's peak power charges (by shaving peaks) and generate significant revenue from the TSO for being on standby to stabilize the national grid. This revenue stream subsidizes the capital cost of the batteries and solar panels, enabling the flat-rate pricing model that Birgersson champions—shifting energy from a commodity priced by volume to a utility priced by access.8

Regulatory Friction and the IKN Exception

The deployment of EnergyNet challenges the legal foundations of the Swedish electricity market, particularly the Network Concession (Nätkoncession). Under the Swedish Electricity Act, grid companies hold natural monopolies on distribution. Building private power lines between properties is generally prohibited to protect the integrity of the tax and fee base.23

However, recent amendments regarding IKN (Icke Koncessionspliktiga Nät or non-concession networks) and the EU's "Clean Energy for All Europeans" package have created regulatory openings. The EU directive on Citizen Energy Communities (CEC) explicitly mandates that member states facilitate energy sharing and forbids discrimination against decentralized networks.24

The Energy Market Inspectorate (Energimarknadsinspektionen) is currently the arbiter of these disputes. While new exemptions allow for "internal networks" (microgrids) within specific constraints, incumbent grid operators frequently challenge these projects, fearing revenue loss. The Lund pilot operates under these emerging exemptions, serving as a test case for how far the interpretation of "internal network" can be stretched before clashing with the concession monopoly.26

Conclusion: A Matter of Resilience

Project Energy Society frames the transition to DC microgrids not merely as an economic or environmental imperative, but as a matter of civil defense. In an era of heightened geopolitical instability, a centralized synchronous grid represents a single point of failure; a successful attack on key transmission nodes can incapacitate a nation. A "packet-switched" grid, composed of thousands of autonomous, island-capable microgrids, offers inherent resilience. If the main grid fails, the Energy Routers simply disconnect, and local communities continue to function on their stored reserves.4

By synthesizing the efficiency of DC physics, the intelligence of internet protocols, and the financial power of frequency markets, Jonas Birgersson and ViaEuropa are charting a path toward an "Energy Society." While significant regulatory and capital hurdles remain, the expansion of the project into public housing signals a growing recognition that the future of energy may look very much like the history of the internet: distributed, abundant, and flat-rate.

Works cited

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