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Fall in Swedish energy prices expected soon

Tuesday, 13 March 2012

The warm spring weather may means that the electricity prices in Sweden will fall and February's price rise shock becomes a distant memory. Electricity prices in March are 50 percent lower than last year.

The winter price shock is determined to be over and at the moment, the price of electricity is already much lower than last year. In the first weeks of March, the spot price, at Nordic energy exchange, Nord Pool, remained at around Skr0.28 per kilowatt hour. There is a price has fallen 50 percent compared to March last year.

In the Nordic market, spot prices fell by 6 percent last week. In two of the Swedish electric regions, the far north and the far south, the prices fell by as much as 9 percent on a weekly basis.

The lower electricity prices in March were mainly due to three things. High levels of the water in the reservoirs to increase in put for hydro electric generation, reduced demand from industries and the warmer spring weather which is forecast such the household demand for power will be low.

One possible area of concern is the nuclear power section which still has operational problems. Two reactors are shut down, Ringhals 2 and Oskarshamn 2.  In addition, Ringhals 1 has run since December last year at very low capacity.

On whole Sweden has shown that it is very poor in harnessing power from nuclear sources as most of its plants stay idle year round or produce energy a very lose capacity,  that is if one compares with other places such as Finland where their nuclear plants generate energy at almost 90 percent of their capacity.

Therefore in Sweden – especially southern Sweden, the spring floods mostly from the rain as fewer threatening clouds are now visible in the sky could be the source of salvation. This could largely affect the prices electricity in southern Sweden.
By Team

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