– The high price we see now is temporary when it is this cold, says Johan Sigvardsson, electricity price analyst at the electricity company Bixia.
The cold is palpable and freezing temperatures are recorded throughout the country. Electricity consumption is thus pushed up, which leads to stress on the electricity system.
The effect on the electricity market is tangible. On Tuesday, the daily price of electricity will rise to SEK 1.81 per kilowatt hour throughout the country, according to the Nordpool electricity exchange. To find a higher daily price, you have to go back to the beginning of February.
But Johan Sigvardsson calls for calm.
– The temperature is 9 degrees below normal, but it won’t be like that all winter, he says.
Sweden cannot meet the demand
Sweden has a large need for imports when it is this cold. Especially during the so-called peak hours in the morning, according to Sigvardsson.
– Tomorrow we will import electricity all the way from France, which goes to us via Germany, the Netherlands and Poland, because we do not have the production capacity needed to meet the demand.
– We had a similar situation during the first half of December last year. Then, just like now, we needed to import electricity from Europe.
Svenska kraftnät states that since Monday morning, Sweden has been importing electricity of upwards of 1,000 megawatts (MW).
No repeat from last year
An inflated electricity price may evoke disturbing memories of last year’s record expensive winter for many households. But according to Johan Sigvardsson, a repeat is unlikely.
– We have a significantly stronger energy balance and better resources this winter than last, he says and adds:
– An important difference is that the German prices are lower now. This is due to several factors, including the fact that gas prices there have fallen. It is also related to the economy. The industry in Europe is not immediately in high gear right now.