High Electricity Costs Expected to Persist
Updated 11:57 AM | Published 11:06 AM
Soaring electricity prices with bills exceeding 12,000 SEK.
But why is electricity so expensive?
There are seven reasons for that.
Ebba Busch (KD) on the criticism of the electricity support
2:09
A perfect storm is brewing in the electricity market.
But in reality, there is hardly any wind at all, and that is one of the factors behind the soaring electricity prices.
On Tuesday, the average spot price was over 2 SEK per kilowatt-hour across the country. Electricity hasn’t been this expensive in over two years.
Christian Holtz, an electricity market analyst at Merlin and Metis, points to a number of causes:
The wind is one of them.
– A key reason is the weather. It has been cold and very calm, especially in northern Sweden. Cold increases electricity consumption and little wind results in low wind power production.
Low Levels in Reservoirs
Another factor is hydrology, Holtz continued.
– We have a lot of hydropower in the Swedish and Nordic electricity system, but right now the water levels in the reservoirs are low. This also applies to snow and soil moisture, which otherwise replenish the reservoirs during the spring. When the availability of water is low, hydropower producers need to restrain production, which drives up prices.
