The planned power line between Skåne and Germany, known as the Hansa Powerbridge, has been rejected by the government.
"The reason is that the German electricity market does not function in a way that provides correct price signals to electricity market actors, primarily because Germany, unlike Sweden, is not divided into electricity areas in a way that corresponds to the significant bottlenecks in the country", the government writes in a press release.
This would risk giving higher electricity prices in Sweden, according to Energy and Enterprise Minister Ebba Busch (KD).