Expert: High Swedish electricity prices saved the electricity system

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Expert: High Swedish electricity prices saved the electricity system
Photo: Johan Nilsson/TT

An unusually cold January and February put the Swedish electricity system to the test and also affected households through high electricity prices. The so-called peak load hour, the hour during the winter when power consumption was highest, fell on the morning of January 12, between 8 and 9 am.

Consumption then was 24,800 MW, higher than during the mild winter last year, but lower than in previous winters.

What we have noticed is increased flexibility in industry and households, says Pontus de Maré, operations manager at Svenska kraftnät.

Reduces consumption

That is, when consumption increases in the cold, the price rises and Swedes reduce their electricity use.

Would the peak hour have been higher if it had been like it was a number of years ago?

"Yes, I would guess so," he says.

The oil-fired power plant in Karlshamn never needed to be used, not even put on standby. Imports of electricity were also lower than normal during the winter.

In Norway, the opposite is true, where the state subsidises electricity, resulting in rising consumption. Households that opted for the so-called Norway Price, a maximum of 40 öre/kWh excluding various surcharges, consumed about 5 percent more electricity this past winter than Norwegian households that did not choose the Norway Price, the news site Montel reported.

Affects Sweden

This is not something Svenska kraftnät likes. If price signals are not allowed to work, households will consume more electricity, which puts pressure on the entire electricity system.

The corresponding price in Sweden would have increased the risk of power shortages.

Besides that, the subsidised Norwegian prices also affect the Swedish electricity market because they are interconnected.

Exactly how is hard to say:

"What you can say is that it is not positive for Sweden, but it is something we are critical of," says Pontus de Maré.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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