The war means energy shortages in Sweden. A major period of large scale investments in hydro power begins. In 1939, the Stadsforsen power station is put into operation, Vattenfall’s first power plant along the river Indalsälven.
Vattenfall is incorporated. The national grid is separated from Vattenfall and overtaken by a new public utility, Svenska kraftnät, and Sjöfartsverket (The Swedish Maritime Administration) takes charge over Trollhätte Kanal.