A rise in electricity prices is expected to hit the southern parts of Sweden particularly hard this winter. Experts say that prices could be twice as high as last year in some areas, but the situation is expected to be considerably better further north.
Lillgrund wind power farm, Sweden. Credit: Mariusz Paździora, CC BY-SA 3.0, Wikimedia Commons
A rise in electricity prices is expected to hit the southern parts of Sweden particularly hard this winter. Experts say that prices could be twice as high as last year in some areas, but the situation is expected to be considerably better further north.
Over autumn and winter, electricity prices in southern Sweden could be almost twice as high as they were last year. “There’s a high chance of higher prices than last winter, and they were exceptionally high then from a historic perspective,” said Christian Holtz, electricity market analyst at energy consultancy company Merlin & Metis.
Many have noticed their electricity bill taking up a larger proportion of their household budget in recent months, and that will continue to be the case. The market’s assessment of the expected future electricity price is currently pointing to an expensive winter, particularly for those in southern Sweden. “During the coming winter, prices will be very high across Europe, and that will spill over into the Nordic energy market,” said John Sigvardsson, analyst at energy trading company Bixia.
In addition, there is still great uncertainty surrounding the supply of Russian gas to Europe in the Nord Stream 1 pipeline. On Thursday, the gas flow resumed after a ten-day break, but only at 40% of normal levels. “If Putin chooses to reduce gas levels even further or close them off altogether, the prices would skyrocket even more,” Holtz said.
A lot can affect the price, according to the two analysts. Not least the weather and how windy it is in parts of the country with wind farms. “The prices we see now for the future market can go up by another 50 or 100 percent, or go down by half. There’s a lot of room for variation there,” Sigvardsson said. However, under the current situation, it seems like higher electricity prices come autumn are unavoidable.
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