Swedish electricity prices in the wake of the Russian invasion of Ukraine

Prices and price forecasts | March 2022 - December 2022

The crisis in Ukraine has had unprecedented effects on European energy markets. At the time of their invasion of Ukraine, Russia covered approximately 40% of the European gas demand, and as a consequence of the war, the already high natural gas prices skyrocketed, along with strong increases in oil and coal prices.  

The aim of this project was to analyse the effects of the grim outlook for fossil fuel commodities on the Nordic power market, including how measures taken by Nordic and European stakeholders may offset the effects. 

The measures analysed included decreased electricity demand in different regions in Europe, increased electricity supply of wind, solar and thermal generation, and increased transmission capacity in Sweden. The conclusion was that decreased demand is the fastest and most effective way to lower electricity prices in Sweden.

Ea aided Swedish energy research institute Energiforsk in the project, which ran from March to December 2022. The resulting report, “Lowering prices in a hurry”, can be found on their website.