Disclaimer: The information provided on the Timber Exchange Market Data Hub is sourced from a variety of publicly available data sources and confidential sources that have not been independently verified. Timber Exchange is not responsible for any expenses, damages, losses, or costs incurred as a result of using or relying on the information provided on this site. By using the Timber Exchange Market Data Hub, you agree to use the information at your own risk and acknowledge that any decisions made based on the information provided are done so solely at your own risk.

Electricity Prices in Southern Sweden Reach Record Highs

Posted on December 20, 2024   |  

Electricity prices soared to new records in southern Sweden on Thursday, with hourly price contracts peaking at SEK 8 per kWh in the afternoon. The spike is attributed to low wind levels in Germany and an increased demand for electricity.
 

Key Highlights:

  • Southern Sweden's electricity prices: Average prices for areas 3 and 4 reached 2.5 SEK and 3.6 SEK per kWh, respectively.
  • Peak price: Between 5 and 6 p.m., prices exceeded SEK 8 per kWh, matching the record levels seen during the 2022 electricity crisis.
  • Northern Sweden fares better: Prices in northern Sweden's electricity areas 1 and 2 were significantly lower, at 17 öre and 9 öre per kWh during the same peak period.
  • Additional costs: Energy tax, including VAT, is 53.5 öre per kWh for most consumers, alongside varying electricity grid costs.
     

Impact on Consumers:

Households with hourly electricity price contracts, which represent 10-15% of customers, are most affected by these price surges.
 

The Cause:

According to Johan Sigvardsson, an analyst at Bixia, the price increase is due to:

  1. Low wind levels in Germany: Reduced wind power production has created reliance on fossil fuels.
  2. High demand: Fossil power suppliers are leveraging high demand to set elevated prices.

Sigvardsson explains:

“Fossil power can set such a high price for its production when the electricity is de facto required.”
 

Price Relief Expected on Friday:

Electricity prices in southern Sweden are set to decline on Friday, with the average price per kWh dropping to just over SEK 1, according to Nord Pool.

  • Northern Sweden continues to benefit from abundant wind power and low prices.
  • Export demand and limited transmission capacity in southern Sweden contribute to regional price disparities.
     

Long-Term Outlook:

Johan Sigvardsson reassures consumers that current high prices are unlikely to stay:

“On Monday, a full storm will blow over the Nordic countries and Germany with an enormous amount of wind power. Then the prices in southern Sweden can end up at 10-15 öre.”
 

Summary of Thursday’s Electricity Prices:

  • Electricity areas 3 & 4 (Southern Sweden): SEK 2.5-3.6 average price per kWh, peak at SEK 8.
  • Electricity areas 1 & 2 (Northern Sweden): 17 öre and 9 öre per kWh, respectively.
     

Stay informed about electricity price trends to better manage your energy costs from our news section.
 

For more updates on the global lumber market and strategic developments, subscribe to our newsletter. Explore our comprehensive Market Data Hub today with real-time insights and data-driven analysis.



Previous Next