Southern Sweden has found itself in an uncomfortable position when it comes to the power supply.

In the north, much of the planable energy is produced by hydropower.

But the transmission capacity to the south of Sweden is limited, and in the south the planned production has been greatly reduced due to the closure of Ringhals.

In electricity price area 4, i.e. the southernmost, there was a sharp price increase from winter 2020/2021 to the following winter.

For an electrically heated villa, the electricity cost increased from SEK 7,200 to close to SEK 20,000.

Several reasons behind

It is difficult to point to a single factor that affected the prices between the two winters, emphasizes Johan Roupe, general counsel at the Electricity Market Inspectorate.

The Swedish prices were affected by rising gas prices, concerns about Ukraine which later turned into a Russian invasion and lower electricity production on the continent.

- Planned production in southern Europe has also decreased, in the form of French nuclear power plants.

On top of that, society has woken up after the pandemic, says Roupe.

Decommissioned reactors affect

Since the Swedish electricity market was deregulated, electricity producers can sell electricity to other countries that are connected to the Swedish electricity grid, causing prices in the south to rise in line with demand.

In the longer term, Swedish nuclear power shutdowns have led to poorer access to electricity in southern Sweden, according to Johan Roupe.

- When Ringhals 1 and 2 were taken out of operation and not replaced, a lot of planned production in southern Sweden disappeared and that makes it more difficult to achieve balance in the system.

Winner of price rush

Obvious losers from the high prices are the consumers.

But some energy companies can make big money from the high demand.

- If you look at the producer side, those who have low production costs can be paid very well.

It should also send signals to investors, says Johan Roupe.

The weather has a big impact

There are many uncertainty factors ahead of the coming winter, including those linked to the war in Ukraine and sanctions between Russia and Europe.

The weather will also have a big impact, emphasizes Johan Roupe, both for supply and demand.

- If it's a mild and windy winter, they shouldn't be such a big problem.

But with a cold, windless winter, there can be huge problems.

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Photo: TT/SVT