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June 21, 2024 01:10 am

Sweden Rejects a New Electrical Interconnection With Germany

sonlas writes: Germany's energy transition plan includes extensive interconnection projects to distribute its intermittent renewable energy production. However, these projects face significant challenges. The latest example is Sweden. One such project, Hansa PowerBridge, announced in 2017, intended to link Germany and Sweden via a 300 km HVDC line through the Baltic Sea. This 700 MW project, estimated at 600 million euro, aimed to stabilize Germany's volatile electricity prices. However, on June 14, 2024, Sweden rejected the project, citing incompatibility between the countries' electricity systems. The connection would link northern Germany to southern Sweden, an area with insufficient infrastructure. Concerns also arose about the volatile German market disrupting Sweden's and increasing local prices. Energy Minister Ebba Busch justified this decision by saying the German market is currently not efficient enough and a connection would risk leading to higher prices and a more unstable electricity market in southern Sweden. This highlights the difficulty Germany faces with its Energiewende, or energy transition model. This model leads to erratic electricity price behaviors and significant challenges in balancing production capacities. While a possible solution for Germany lies in interconnection with neighboring countries, the examples of Norway (which cancelled the NorGer project too) and Sweden show that from the perspective of these neighbors, it looks more like an "export of German problems" rather than a solution.

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