How high will your Swedish energy bill be this autumn and winter?
August was a cheap month for Swedish households where energy was concerned, but what's the outlook for the colder months?
Energy prices in August were substantially lower than they were the same month last year, at least in the south of the country.
The average price per kilowatt hour (kWh) in energy zone 4 in southern Sweden was just 50 öre, according to energy market Nord Pool. For comparison, the price of electricity in the same zone in August last year was 3.05 kronor per kWh.
In zones 3 and 4, energy users paid 2.23 kronor per kWh in August 2022, which dropped to just 37 öre last month – the cheapest month since April 2021.
Those living in Norrland have actually seen a slight increase in prices since August last year – up from 18 öre to 24 öre per kWh in August 2023, although they still pay less for energy than users in the rest of Sweden.
Why was energy so cheap in August?
For the most part, August's energy was cheap, but at the end of the month prices shot to over a krona per kWh in the southern half of the country – which narrowly stopped it from becoming the cheapest month for energy since 2020.
"Last week there was almost no wind at all," energy price analyst Johan Sigvardsson from energy trading company Bixia told TT newswire. "And it was also a bit shaky when it comes to nuclear energy."
The reactor in Oskarshamn had some issues, and a reactor in Finland was forced to close due to unexpected problems. On top of that, a couple of other reactors in both countries were closed for yearly maintenance, pushing the price in the south of the country up.
How much will it cost during the rest of the year?
This week, most of the closed nuclear power plants will be back in action, which should keep prices low, and the prognosis for autumn and winter looks much better than it did last year.
Sweden's constant rain this summer was maybe not what most of us would have wished for, but in July and August the rain generated a whopping 20 Terrawatt hours (TWh), which is now stored in reservoirs, Sigvardsson explained.
For context, Sweden's total yearly energy production is usually around 170 TWh.
"That provides a great deal of security in the energy supply," he added.
Situation looking good in the rest of Europe
Another bonus is that gas stores in the rest of Europe are unusually well-filled for this time of year. French nuclear power is in a better state than it was last year, and despite the heat in many parts of Europe, there has also been a lot of rain, so water stores are also well-stocked, Sigvardsson said.
"The balance of energy across Europe is much stronger than last year. All parameters are looking better than before," he added.
"Of course, there could be issues with nuclear power in the winter, and that would put a stop to most of these prognoses."
Pre-winter trade on the energy markets – contracts for future energy supply – are currently showing prices of under one krona per kWh for what is usually the coldest period, the first quarter.
However, that only applies to the market price. The final price for consumers includes energy tax, VAT and an energy network fee of over a krona.
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Energy prices in August were substantially lower than they were the same month last year, at least in the south of the country.
The average price per kilowatt hour (kWh) in energy zone 4 in southern Sweden was just 50 öre, according to energy market Nord Pool. For comparison, the price of electricity in the same zone in August last year was 3.05 kronor per kWh.
In zones 3 and 4, energy users paid 2.23 kronor per kWh in August 2022, which dropped to just 37 öre last month – the cheapest month since April 2021.
Those living in Norrland have actually seen a slight increase in prices since August last year – up from 18 öre to 24 öre per kWh in August 2023, although they still pay less for energy than users in the rest of Sweden.
Why was energy so cheap in August?
For the most part, August's energy was cheap, but at the end of the month prices shot to over a krona per kWh in the southern half of the country – which narrowly stopped it from becoming the cheapest month for energy since 2020.
"Last week there was almost no wind at all," energy price analyst Johan Sigvardsson from energy trading company Bixia told TT newswire. "And it was also a bit shaky when it comes to nuclear energy."
The reactor in Oskarshamn had some issues, and a reactor in Finland was forced to close due to unexpected problems. On top of that, a couple of other reactors in both countries were closed for yearly maintenance, pushing the price in the south of the country up.
How much will it cost during the rest of the year?
This week, most of the closed nuclear power plants will be back in action, which should keep prices low, and the prognosis for autumn and winter looks much better than it did last year.
Sweden's constant rain this summer was maybe not what most of us would have wished for, but in July and August the rain generated a whopping 20 Terrawatt hours (TWh), which is now stored in reservoirs, Sigvardsson explained.
For context, Sweden's total yearly energy production is usually around 170 TWh.
"That provides a great deal of security in the energy supply," he added.
Situation looking good in the rest of Europe
Another bonus is that gas stores in the rest of Europe are unusually well-filled for this time of year. French nuclear power is in a better state than it was last year, and despite the heat in many parts of Europe, there has also been a lot of rain, so water stores are also well-stocked, Sigvardsson said.
"The balance of energy across Europe is much stronger than last year. All parameters are looking better than before," he added.
"Of course, there could be issues with nuclear power in the winter, and that would put a stop to most of these prognoses."
Pre-winter trade on the energy markets – contracts for future energy supply – are currently showing prices of under one krona per kWh for what is usually the coldest period, the first quarter.
However, that only applies to the market price. The final price for consumers includes energy tax, VAT and an energy network fee of over a krona.
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