Svenska kraftnät recently announced that plans for a strategic power reserve for the winter of 2025/2026 have been cancelled. The reason? All bids submitted in the procurement process exceeded the price cap set by the EU Commission under state aid regulations – meaning Sweden will enter the coming winter without any additional backup capacity.
The strategic power reserve is designed to be activated during periods of extreme demand, such as cold weather or low wind generation, to prevent forced disconnections. Its absence raises important questions about security of supply and potential price volatility in the Nordic power market.
With the southern parts of Sweden already under pressure and increasing reliance on weather-dependent generation, there is now a growing risk of higher price volatility and greater import dependency during the coldest months.
For companies with large electricity needs, this makes strategic risk management and close monitoring of system adequacy even more critical. Understanding how these developments affect both spot and forward prices will be key to managing procurement and maintaining cost stability.
At NUS Consulting Group, we are closely monitoring these market developments and supporting businesses in analysing the impact of policy and regulatory changes on their electricity strategy.
Want to learn more about how this decision could impact the market and your company’s energy costs? Feel free to reach out to us.