Conflict erupted between European countries over electricity

Sweden has prevented Norway from using its grids to supply electricity to Germany

A power supply conflict has erupted in Northern Europe. Sweden does not allow Norway to use its grids to increase electricity exports to richer countries, as it itself lacks heat, writes Bloomberg.

A dispute between European countries has arisen over the use of cross-border power cables, which are a key part of the EU plans for decarbonization. They give neighboring countries access to low-carbon resources such as wind or hydropower. Electricity goes where prices are higher without the intervention of network operators, but in the event of a supply disruption, flows can be stopped.

Norway has begun to increase its electricity exports to wealthier countries, Germany and the UK. Sweden opposed this, as a result Norway reduced the supply of electricity to its northern neighbor. By halving its available export capacity to about 1,200 megawatts, Norway has increased the risk of a shortage in the region, experts say.

“If demand is higher, we will have to rely on imports from other countries or partially cut off electricity as soon as cold, “said Erik Eck, head of strategic management at Svenska Kraftnat.

Previously, almost half of German companies complained about the threat to their competitiveness due to rising energy prices. Rapidly rising electricity and gas prices pose a threat to the German economy.