Concerns about future electricity shortages - companies hesitant about new initiatives

The world's energy market analysts have started talking about "a perfect storm".

- There are so many factors that were not taken into account, says Rebecka Bergholtz, analyst at the Swedish Energy Agency.

At the same time as the wheels have started to roll after the pandemic, and thus also the demand for energy, the wind has been unusually light and deliveries of Russian natural gas to Europe have been less than expected.

Now, most say that we are heading towards a winter with high electricity bills.

Concerns among companies

Swedish industry has in all years been able to rely heavily on stable and cheap electricity.

Many companies are concerned that the electricity market is shaking - also in Sweden. 

- We have had a competitive advantage in Sweden, we should not neglect that, says Jan-Olof Jacke, CEO of the Confederation of Swedish Enterprise.

The organization has asked its 3,647 member companies (31 percent answered) how they view the energy crisis and Sweden's ability to handle it.

- One in ten companies, regardless of whether they are energy-intensive or not, already says that they have been affected, says Jan-Olof Jacke.

Profound energy problems

However, the concerns that the business community wants to highlight are not primarily about the current crisis.

It is believed that Sweden has more in-depth structural energy problems.

Just over half of the companies that plan energy-intensive investments hesitate because they do not trust that the supply of extra power can be met.

Despite the fact that Sweden has an electricity surplus, there may be a shortage of electricity in southern Sweden, which may then need to import expensive electricity from the continent.

The capacity in the power transmission from northern to southern Sweden is insufficient and electricity production in the south has periodically needed to be strengthened with oil-fired reserve power.

Criticism of unclear messages

Jan-Olof Jacke says that the government's message about what it intends to do about problems is unclear.

- I want to see action and that we take measures to create an increased planned electricity production in southern Sweden.

Seven out of ten companies state that they have little or no confidence that Swedish energy policy will be able to meet the demand for electricity in the future.

- My vision of horror is that we will lose competitiveness - and not be able to make the rapid adjustment that is needed for the sake of the climate, says Jan-Olof Jacke.