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Ebba Busch, Sweden’s energy minister. Credit: Instagram @buschebba
Sweden has gestured its willingness to approve the Hansa PowerBridge project, a 700-megawatt power cable connecting southern Sweden to Germany, provided Germany overhauls its electricity market system.
The move comes amid growing frustration over volatile energy prices and inefficiencies within Europe’s interconnected power grids.
Swedish Energy Minister informs Germany of the electricity conditions
Swedish energy minister Ebba Busch told the Financial Times that the project, which aims to integrate the German and Swedish electricity markets, will remain postponed “until Germany gets its system in order.”
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Busch insisted that Berlin split its internal electricity market into bidding zones to improve efficiency and prevent Germany from pulling too much of Sweden’s cheaper hydropower.
Currently, Germany’s electricity market structure drives power prices higher in Sweden, particularly in the south, where energy costs fluctuate wildly. Last week, prices in southern Sweden reportedly jumped from negative rates to €1 per kilowatt-hour, creating instability for homes and businesses.
Sweden’s energy grid is already connected to Germany through a separate undersea interconnector. However, regional price disparities persist due to weak transmission links between Sweden’s north – home to its vast hydropower resources – and the more industrialised south.
For example, residents in Gothenburg paid 190 times more for electricity than those in the northern city of Luleå last week. A Swedish business executive warned that if these issues remain unresolved, “big parts of industry could be in trouble.”
Germany’s energy policies
Busch pointed to Germany’s decision to phase out its nuclear power plants as a key driver of its energy crisis. Following the Fukushima incident in 2011, Berlin closed its nuclear facilities, leading to increased reliance on imported electricity. Busch argued that Europe must move past political debates on nuclear energy and embrace it as a stabilising force.
“No political willpower can override the basic rules of physics, not even Dr Robert Habeck,” Busch said, referring to Germany’s Green Party energy minister, a vocal opponent of nuclear power.
European energy market
Europe’s electricity system is under increasing strain as member states accelerate their shift to renewable energy. While renewables reduce fossil fuel reliance, they create periods of overproduction – when wind and solar generation peaks – and underproduction during lulls. These imbalances cause price volatility across Europe, as seen in Sweden, Norway, and Greece.
The EU’s energy regulator, Acer, warned that network costs could double by 2050, further pressuring energy prices.
For Sweden and Germany, the Hansa PowerBridge’s future hinges on Germany’s willingness to reform its energy market. As Europe grapples with volatile energy prices, the debate over nuclear power and grid integration will remain central to achieving long-term stability.
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Publish date : 2024-12-17 00:25:00
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The post Reform your electricity « Euro Weekly News first appeared on Love Europe.
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Publish date : 2024-12-17 15:11:35
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