Vattenfall's decision to stop, among other things, the wind power project Kriegers Flak and also hesitate about investing in Kattegatt South has several reasons, including low prices, higher construction costs, but also that the state does not pay for the power cables out to sea, according to the Vattenfall CEO.
As for Kriegers Flak, it was mainly the latter that put a stop to it.
When it comes to Swedish Kriegers Flak, we had come so far that we saw that we had both the revenue we needed and costs from our suppliers that we could live with, she says to TT in connection with the quarterly report being presented.
Required for profitability
This also applies to other offshore wind power projects.
Yes, for most projects, a grid connection to the sea is needed to become profitable.
Another thing that makes electricity producers hesitant is the many electricity-intensive industrial projects that have been put on hold or completely stopped.
We are, of course, looking at that and taking it into account when we see what investments we believe need to be made and when, says Anna Borg.
The pace is the big question
However, the direction is still clear, she thinks.
But the pace of this transition is the big question right now. And it's clear that if the pace is slower, it also means that there isn't as great a need for more electricity production as quickly.
Is there too much electricity production in the Nordic region at present?
No, I wouldn't say that. We do have a lot of electricity production, but we also see that many companies want to expand or establish themselves here. So we will still need an expansion of more fossil-free electricity, says Borg.
Price guarantee necessary
Even to build new nuclear power, the electricity prices are currently too low, and what is seen in the forecasts. Therefore, the risk-sharing model that the state's investigators have presented is absolutely necessary, where, among other things, a certain price for the nuclear power that Vattenfall produces will be guaranteed by the state for a long time, according to Anna Borg.
But even though it has been quiet from Vattenfall lately about the ongoing nuclear power plans at Ringhals, work is in full swing, assures the Vattenfall CEO:
We are planning on site to see exactly how many reactors, depending on which technology is ultimately chosen, can fit. We are mapping nature and the environment to be able to submit an environmental application with an environmental impact assessment, she says.
The underlying operating result amounted to 1.4 billion kronor during the third quarter. This can be compared to a profit of 946 million kronor for the same period last year.
At the same time, net sales decreased by 17 percent to 48.6 billion kronor.
In a comment on the report, Vattenfall's CEO Anna Borg writes that electricity prices on Vattenfall's markets fell by 30 percent during the quarter.
"On the continent, the price drop was driven by lower gas and coal prices, as well as increased production of wind and solar power. This development has also pushed down electricity prices in southern Sweden".
But Vattenfall has hedged a lot of electricity sales, so the company has received more money for the electricity this year than last year.
Source: Vattenfall
