The decommissioning of several large generating stations in southern Sweden has indeed affected the effective transmission capacity from the north.
Yes, local electricity bill would go up but if the price is often extremely low, selling some for higher price is a net win. Ie this is why we have trade as concept in the first place.
Not a good sign when right-wing governments are complaining about market based price signals and trade.
Just because Germany destroyed their electrical system it should not mean that companies in Sweden should go bankrupt. Germany tampered with the EU market, they ought to pay fines.
That said, the coalition also wants to improve the transmission lines.
Also, a lot of the new energy needs comes from "green steel", which would give massive reduction in the green house gas production required to produce steel.
But for that to make sense we need lots of clean energy.
Here in Finland the transmission costs before this current price hike were usually 50%+ (for me with my current fixed price contract they are around 60%) of the total electricity bill. We got a really good network but it does come with a cost.
Obviously with the current market prices the cost of the transmission capabilities is a rounding error but if we get back to the electricity prices of a year or two ago the costs of transmission could start to dominate the price again so you have to be careful about investments like this (just like you have to be with nuclear plants for the case that the price on the markets is goes permanently under your production costs)
And transmission capability upgrades are really long term investments. Sweden started lately to try and fix this issue. If that project finishes on time it will take 14 years to finish. These are the kind of timescales where building a new nuclear power plant can be a faster fix.