Germany took a significant step in 2023 by shutting down its last nuclear power plants, in line with a decision made after the Fukushima disaster. To compensate for the loss of nuclear energy, the country relies heavily on renewable sources like wind and solar power. However, this transition has increased its dependence on electricity imports, particularly from Sweden.
As Europe’s second-largest net exporter of electricity, Sweden has been significantly impacted by this policy. Massive exports to Germany, combined with the volatility of renewable energy production, have led to notable price increases, especially in southern Sweden. These rising costs are putting pressure on households and businesses, sparking growing discontent among Swedish political and economic stakeholders.
Rising Diplomatic Tensions
Ebba Busch, Sweden’s Minister of Energy, has openly criticized Germany’s energy management. During a meeting in Brussels, she condemned Berlin’s “irresponsible” policy for placing an undue burden on neighboring countries. “It is unacceptable that Swedish consumers bear the consequences of decisions made in Berlin,” she stated, calling for a reform of cross-border electricity pricing mechanisms.
The German government defends its approach, arguing that investments in new electricity transmission infrastructure will eventually reduce these imbalances. However, these projects will take years to materialize, leaving tensions unresolved in the short term.
Suspended Projects and Nuclear Strategy
In response to this situation, Sweden has halted the Hansa PowerBridge project, a planned 700 MW interconnection with Germany. According to Ebba Busch, this move is a strategic measure to protect Swedish consumers.
At the same time, Sweden is reinvesting in nuclear energy to meet its own energy needs and reduce reliance on exports. Svenska Kraftnät, Sweden’s electricity transmission system operator, also advocates for increasing local production, particularly in the southern regions, which have been weakened by past nuclear reactor shutdowns.
Repercussions in Norway
The energy dispute between Sweden and Germany is also reverberating in other Scandinavian countries. In Norway, the government is considering not renewing the Skagerrak submarine cables connecting the country to Denmark, citing their impact on domestic electricity prices.
This potential decision worries Stockholm, which sees these infrastructures as critical for regional energy balance. However, Norwegian officials insist on their sovereignty in managing national energy resources.
These disputes highlight the growing challenges of Europe’s energy transition. As each country prioritizes its own interests, cross-border cooperation becomes increasingly strained, underscoring the need for a more coordinated political framework to address market realities.
