Finnish electricity prices soar while Northern Sweden sees significant contrast

On Tuesday morning, Finnish electricity markets experienced an unusual situation. Electricity production in Finland was limited, resulting in the highest prices in the Nordic region. At 8 AM, the price reached nearly 125 euros per megawatt-hour, according to Nordpool data. In stark contrast, in Northern Sweden, electricity cost less than nine euros per megawatt-hour at the same time.

Despite low domestic production in Finland, electricity was occasionally exported to Northern Sweden. Fingrid reported that export peaked at 8 AM, amounting to 335 megawatt-hours, but subsequently stopped. Pekka Salomaa, director of the energy industry, expressed confusion over the morning statistics, noting the significant price discrepancy.

Salomaa indicated that market prices for the day were based on the expectation of significant electricity transfers from Northern Sweden to Finland. “Electricity should be flowing to the extent that the lines can handle it, but now the situation is reversed. This shouldn’t happen under normal circumstances. I suspect there is some sort of disruption,” he remarked.

However, he acknowledged that fluctuations in electricity markets are inevitable as producers and consumers seek balance. Jonne Jäppinen, head of Fingrid’s unit, confirmed the temporary export spike. He explained that Finland experienced greater-than-expected wind power production, which was redirected to Sweden. The prices are based on trades conducted the previous day, but unforeseen adjustments can occur.

Wind power generation was approximately 500 to 700 megawatts higher than anticipated that morning, Jäppinen stated. “This reflects the real-time situation, which often deviates from the planned trading conditions. Currently, wind forecasts have improved, and the situation has normalized.” He noted the significant impact of wind power in Finland, with over 7,000 megawatts of wind production compared to around 4,300 megawatts from nuclear power. Recent low domestic production has been attributed to weak wind conditions, alongside maintenance at the Loviisa nuclear power plant.