Business Community: "Every Stopped Electricity Project Worries"

The government's plans for billion loans and gigantic price guarantees to nuclear power can hardly be called technology-neutral, thinks Svenskt Näringsliv's CEO Jan-Olof Jacke. And that Vattenfall is putting the brakes on offshore wind power is unfortunate. It is clear that every stopped project worries.

» Updated: September 17 2024

» Published: September 06 2024

Business Community: "Every Stopped Electricity Project Worries"
Photo: Magnus Hjalmarson Neideman/SVD/TT

Share this article

The past few weeks have brought several pieces of bad news on the energy front, according to Jan-Olof Jacke. He is thinking, among other things, of Vattenfall's stopped offshore wind farm south of Skåne, and the fact that no new investment decisions on land-based wind power were made during the second quarter.

And he thinks that the recent nuclear power debate has been unserious.

It's clear that the overall picture becomes one of concern, that we have a sluggishness in getting the electricity supply we need to be attractive to industry, says Jacke.

Högre elpris

The announcement that Vattenfall is stopping, or pausing, the large wind farm on Kriegers Flak is especially bad for southern Swedish industry, with likely higher electricity prices as a result.

I have very great understanding for the reactions that exist there, says Jacke.

Vattenfall motivates the decision by saying that it becomes too expensive without government aid to build out the grid at sea. But Jacke points out that there are other energy companies that seem to have calculated without those subsidies.

We'll see if they come to a different conclusion.

But regardless, every stopped new electricity project worries, according to the CEO of Svenskt Näringsliv.

Not technology-neutral

Exactly how potential support for offshore wind power could look, he does not want to go into. These are complex issues. Energy Minister Ebba Busch (KD) does not intend to change her mind, there will be no money for the cables out at sea. It would not be fair, she claims.

But the support that exists for the different energy sources is not neutral, according to Jan-Olof Jacke. For even if Svenskt Näringsliv is cautiously positive to the proposal on how new nuclear power should be financed, with, among other things, several hundred billion kronor in government loans and a guaranteed minimum price for electricity to nuclear power owners, there are question marks.

It's worth evaluating if you can make it more technology-neutral, he says.

Has nuclear power been favored too much?

It's clear that you can't say it's completely neutral when you have a system that has a guaranteed price. And others don't. So there are conditions, I think, to make the proposal more technology-neutral.

Difficult to make decisions

On the other hand:

Our electricity system has never been technology-neutral, says Jacke.

He doesn't believe that the massive support for nuclear power will make other electricity producers hesitate. On the other hand, the fluctuating prices, with increasingly common negative electricity prices. And the long times it takes to get permits for new projects add to the uncertainty.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

The Job Market in Sweden is Cooling Down - Significant Differences Between Industries

The Job Market in Sweden is Cooling Down - Significant Differences Between Industries

US Inflation Steady at 2.6 Percent in July
1 MIN READ

US Inflation Steady at 2.6 Percent in July

Extended Nuclear Shutdown Raises Electricity Prices in Southern Sweden
2 MIN READ

Extended Nuclear Shutdown Raises Electricity Prices in Southern Sweden

Price Pressure Reduces Alibaba's Second Quarter Profit
1 MIN READ

Price Pressure Reduces Alibaba's Second Quarter Profit

Ikano Bank Reports Loss Amid 670 Million Kronor Credit Losses
1 MIN READ

Ikano Bank Reports Loss Amid 670 Million Kronor Credit Losses

Norway and US Senator Clash Over Oil Fund's Caterpillar Divestment
1 MIN READ

Norway and US Senator Clash Over Oil Fund's Caterpillar Divestment

Tesla Denied New Charging Stations Amid Swedish Union Strikes
1 MIN READ

Tesla Denied New Charging Stations Amid Swedish Union Strikes

Cook vs. Trump: Federal Reserve Board Dispute in Court Today
2 MIN READ

Cook vs. Trump: Federal Reserve Board Dispute in Court Today

Stockholm Stock Exchange Sees Continued Decline
1 MIN READ

Stockholm Stock Exchange Sees Continued Decline

Saab to Develop Unmanned Underwater Vehicle for FMV
1 MIN READ

Saab to Develop Unmanned Underwater Vehicle for FMV

Swedish Economy Shows Recovery with Revised GDP Growth
1 MIN READ

Swedish Economy Shows Recovery with Revised GDP Growth

Academedia CEO Unconcerned About Potential Social Democratic Government
2 MIN READ

Academedia CEO Unconcerned About Potential Social Democratic Government

US Ends Duty-Free Exemption for Small Package Imports
1 MIN READ

US Ends Duty-Free Exemption for Small Package Imports

Swedish Investors Shift Focus from Defense Stocks Amid Peace Talks
2 MIN READ

Swedish Investors Shift Focus from Defense Stocks Amid Peace Talks

Consumer Agency's Proposed Telemarketing Ban Could Cost Thousands of Jobs
2 MIN READ

Consumer Agency's Proposed Telemarketing Ban Could Cost Thousands of Jobs

Asian Stock Markets Mostly Rise in Early Friday Trading
1 MIN READ

Asian Stock Markets Mostly Rise in Early Friday Trading

US Stock Market Rises Despite Urban Outfitters' Sharp Decline
1 MIN READ

US Stock Market Rises Despite Urban Outfitters' Sharp Decline

Swedish Hemp Cultivation Doubles, Reaches Record Levels
1 MIN READ

Swedish Hemp Cultivation Doubles, Reaches Record Levels

Opposition Criticizes Swedish Government's 2026 Budget as Desperate Move
2 MIN READ

Opposition Criticizes Swedish Government's 2026 Budget as Desperate Move

Sweden Can Afford Economic Investments Says Swedbank Economist
2 MIN READ

Sweden Can Afford Economic Investments Says Swedbank Economist