Sweden is preparing to implement new measures to address escalating energy prices, Swedish Energy Minister Ebba Busch announced on Thursday, 12 December. She attributed the energy crisis in Sweden and across the EU to Germany’s decision to phase out nuclear power.
Facing growing regional disparities in electricity costs and skyrocketing prices in the southern parts of the country, the Swedish government is considering additional support for households and businesses to alleviate mounting financial pressure.
“The government is open to supporting households and businesses if the need arises,” Prime Minister Ulf Kristersson stated, as citizens brace for higher energy bills this winter.
“I realize that nobody is happy when I say, ‘We wouldn’t have these problems if we hadn’t shut down half of our nuclear power.’ But it’s true, and it needs to be said,” Kristersson remarked. He pointed to the German Social Democrat-Greens coalition’s decision to shut down several nuclear reactors between 2019 and 2020, shifting toward renewable energy sources, as a key factor.
Public dissatisfaction has intensified in Sweden due to staggering electricity price inequalities. In an Aftonbladet article published on 11 December, energy expert Andreas Cervenka noted that electricity prices in southern Sweden are 18,000% higher than in central Sweden. For example, a 10-minute shower in southern Malmö costs over 31 SEK (2.65 euros), compared to 0.17 SEK (0.01 euros) in Sundsvall, located in central Sweden.
Busch criticized Germany’s nuclear phase-out, emphasizing its ripple effects across Europe. Speaking to Swedish broadcaster SVT, Busch stated: “I am very angry with the Germans. They made a decision for their country, and they have the right to do so. But this has had very serious consequences.”
Germany’s low wind energy production leads to increased reliance on Swedish electricity exports to fill supply gaps. This reduces availability for Swedish consumers, further driving up prices.
In addition, Sweden faces domestic structural challenges, including poor connectivity between northern Sweden—where hydropower surpluses are abundant—and southern Sweden, which has higher energy demands but limited local production. This issue is exacerbated by the Flow-Based Market Coupling system, an EU electricity market mechanism introduced in Sweden in October 2024. The system aims to optimize cross-border electricity flows but has significantly increased prices in southern Sweden.
The opposition Social Democrats argue that Sweden’s high electricity prices stem from flaws in the EU energy market itself. According to Fredrik Olovsson, the party’s industrial policy spokesperson, the Flow-Based Market Coupling model prioritizes broader European demand over national needs, further straining Swedish consumers.
“This really makes one angry,” Olovsson said. “A little over a month ago, the government had a chance to stop the model currently in place, which is contributing to these high prices. The industry raised widespread criticism, and we warned this could happen.”
As winter intensifies, pressure is mounting on Busch to renegotiate Sweden’s role in the EU energy market. Critics call for emergency relief for consumers while ensuring the long-term stability of the system. However, leaving the EU energy market is not currently on the Swedish government’s agenda. Instead, the government views the Flow-Based Market Coupling system as a partial solution to southern Sweden’s energy shortages.
“The EU-regulated flow-based capacity calculation model has many effects. One of them is that more electricity can be transported from northern to southern Sweden,” Busch explained, acknowledging the role of the EU energy market in influencing price increases. “This is necessary, especially since there is a serious shortage of electricity production in southern Sweden in relation to consumption and the grids,” she concluded.
