- Energy minister in Sweden, Ebba Busch, has strongly criticised Germany’s energy policies, claiming they unfairly drive up electricity prices for Swedish consumers.
- Sweden is holding off on a new subsea power connection to Germany, demanding that Berlin implement pricing zones to address the impact of its energy decisions.
Sweden, one of Europe’s largest electricity suppliers, is strongly dissatisfied with Germany’s energy policies, claiming they are unfairly driving up electricity costs for Swedish consumers. Swedish Energy Minister Ebba Busch has openly criticised Berlin’s approach, calling it “irresponsible” and expressing her frustration with Germany’s energy strategy.
Under Chancellor Angela Merkel, Germany decided to shut down its nuclear power plants following the 2011 Fukushima disaster, completing the phase-out in 2023. As the country transitioned to renewable energy sources, it became heavily reliant on weather-dependent power generation and increasingly imported energy from neighbouring countries. Sweden, Europe’s second-largest net exporter of electricity (after France), has been a key supplier.
However, Sweden argues that cross-border electricity connections, while helping balance supply and demand, have unintended consequences. The demand for power in Germany has pushed electricity prices in Sweden, particularly in the southern regions, which are more linked to German prices.
Recently, at times of low wind generation in Germany, the cost of electricity in south Sweden was up to 190 times higher than in the country’s north, which benefits from abundant hydropower.
Busch has criticised Germany’s approach, saying, “No willpower in the world can override the basic rules of physics, not even Dr Robert Habeck,” referring to Germany’s economy minister. She added that while Germany is free to make its own energy decisions, its actions unfairly affect neighbouring countries, particularly Sweden, where consumers are forced to pay prices driven by Germany’s choices.
However, Swedish officials also acknowledge that Germany is not the sole factor behind rising prices. In recent years, Sweden has seen reduced electricity production in the south, particularly after the closure of several nuclear reactors. Lotta Medelius-Bredhe, head of Sweden’s electricity transmission authority, Svenska Kraftnat, noted that the southern regions need to boost power production significantly.
In response, Sweden has reversed its previous stance and decided to build new nuclear power plants. The country also advocates for Germany to implement electricity pricing zones, similar to its system, to help contain volatile prices.
Sweden has used this leverage to halt the construction of a new subsea electricity link, the 700-MW Hansa PowerBridge, which would connect Sweden and Germany. Busch clarified, saying, “We are holding a gigantic cable to Germany hostage because Germany does not have its energy system in order.”
For its part, Germany has ruled out introducing variable pricing zones for electricity, leaving the dispute unresolved.