Electricity prices in southern Sweden continued to hit record highs at 3 kroner per kWh, more than 10 times higher than in northern Sweden. Europe's energy crisis worsened after Russia cut gas supplies, causing electricity prices in Sweden's southernmost tip to continue to rise.
"One of the most important reasons may be that the energy crisis in Europe has escalated after Gazprom cut gas deliveries to Germany via the Nord Stream 1 gas pipeline, which has led to sharp increases in gas prices, which in turn have pushed up gas prices," said consultancy SIGholm. Electricity prices, as gas-fired power plants in Europe are an important part of the electricity price. As Sweden is connected to Europe through the electricity grid, there is a knock-on negative effect. Due to grid constraints, a large surplus of cheap hydro and wind power is locked at lower price levels north."
The International Energy Agency (IEA) has warned that Europe must prepare for a complete stoppage of Russian gas imports this winter. So far, Europe's reliance on Russian gas has been reduced from 40% to around 20% now.
