Sweden, a leading electricity supplier in Europe, is expressing strong discontent with Germany’s energy policies, which are causing higher energy costs for Swedish consumers. Energy Minister Ebba Busch has been particularly vocal, calling Germany’s energy decisions “irresponsible” and arguing that they unfairly impact Swedish businesses and households.
Germany’s decision to shut down its nuclear power plants after the 2011 Fukushima disaster has left the country more reliant on renewable energy. While this shift has its benefits, it has also made Germany dependent on imports to meet its energy needs, including from Sweden. As one of Europe’s largest net electricity exporters, Sweden has felt the effects of Germany’s energy choices.
The interconnected European electricity grid means that demand and supply in one country directly influence pricing in neighboring nations. In Sweden, this has led to significant price differences between the northern and southern regions. Southern areas, which are more affected by Germany’s energy needs, have seen electricity prices soar, especially when there is little wind power available in Europe.
Busch has criticized Germany for not considering how its decisions affect neighboring countries. She emphasized that “no willpower can override the basic rules of physics,” meaning that Germany’s energy policy directly impacts Sweden’s prices. Despite this, Busch and other analysts also recognize that Sweden’s own energy production issues, particularly in the south, contribute to the situation.
To address price volatility, Sweden has proposed a pricing system with different zones, but Germany has rejected this idea. In response, Sweden has paused the development of the Hansa PowerBridge subsea cable, holding it “hostage” until Germany adjusts its energy system. Meanwhile, Norway is also considering limiting its energy exports due to high prices, which could further strain energy relations in the region.
