Sweden has rejected Scania's application to build a new power cable to Germany. The government believes that the German electricity market is inefficient, leading to higher electricity prices.
Short version
- Sweden has rejected Scania's application to build a new power cable to Germany.
- The government believes that Germany's electricity market is inefficient and that the cable will lead to higher electricity prices.
- Energy Minister Ebba Busch points to the risk of a still unstable electricity market in Sweden.
The reason, according to the Swedish government, is that there is only one price ceiling in Germany and market participants are not receiving the correct price signals.
– does not work
– Southern Sweden, which has a large deficit in electricity production, cannot be connected to Germany, where the electricity market is currently inefficient. Energy and Industry Minister Ebba Busch said this could create a risk of creating a high-cost and unstable electricity market in Sweden. Press release Friday.
Both Norway and Sweden are divided into different price areas, called bottlenecks, and there are sometimes large price differences between the different areas.
Norwegian website Europower He writes that today there is a connection between Sweden and Germany (Baltic Cable).
Svenska kraftnät argues its Website It is approaching its technical lifespan – which is in 2035 – and a new cable is advantageous for delivery security.
– no need
The government has now launched a new cable called the Hansa Powerbridge cable. Europower writes that Svenska kraftnät and German company 50 Hertz have applied to build the 700 MW cable.
– Most players in the electricity market see no need for cable today, says a Swedish press release, where it is pointed out that southern Sweden is one of the electricity regions with the most foreign cables in Europe.
But the refusal does not mean that it forbids a new connection between Germany and Sweden if conditions change in the future.
According to Swedish Government platform The construction of foreign cables should be put on hold until the price differentials are significantly reduced.
– This shows that many countries in Europe exercise political freedom in energy policy, says Sophie Marhac (R).
Recently, the Center Party announced that they are now developing a new party plan where they say not to renew the two oldest power cables from Norway to Denmark, which will soon be retired.
Marhaug believes that the Swedes' refusal is an argument for abandoning the new Danish cables.
– The Danish market is closely linked to the German and British, and more mergers will give Norway an even higher price contagion, writes Marhach in an SMS to VG.
Europower writes that Storting representative Nikolai Astrup (H) asked questionablel In the German power market.
He wants to know whether Norway's energy minister wants to confront Germany about the country's single price cap.
“Music geek. Coffee lover. Devoted food scholar. Web buff. Passionate internet guru.”
