The last few winters, the oil-fired power plant in Karlshamn has functioned as an electricity reserve, but that agreement expired last season. And ahead of the new procurement of electricity producers who would take on this task, new rules have applied, where the EU's state aid rules set limits. It simply cannot cost too much.
Three bidders submitted, all were above the price ceiling, says Pontus de Maré, operations manager at Svenska Kraftnät.
"Very challenging"
Thus, Svenska Kraftnät is canceling the procurement of the electricity reserve, or strategic reserve as it is more precisely called.
Is it over now?
It will be very challenging to manage this until the coming winter, says Pontus de Maré.
According to him, the issue is now with the government and the EU to quickly try to fix the regulations.
Two hazardous scenarios
The reserve has been there over the years – a kind of insurance to prevent Svenska Kraftnät from being forced to take the drastic measure of shutting off the power in certain areas, according to Pontus de Maré.
What can now trigger such a situation?
There are two scenarios that are a bit hazardous, partly that it becomes extremely cold in all of Europe, no wind and limited import opportunities, partly that there are disruptions, says de Maré.
Such disruptions could, for example, be that one or two nuclear reactors break down, which is not at all unusual. It can also be unplanned disruptions in the power grid, according to de Maré.
The price soars
Now, the reserve is usually not necessary. The last time it was connected on a large scale was 2012, according to Svenska Kraftnät. And no manual shutdown has ever been needed, so far.
Ahead of the risk of the electricity running out, the price will soar. At the same time, it can be the salvation to avoid a shutdown.
It will be the first signal for companies and the public to start adjusting their consumption, says Pontus de Maré.
