"The price of electricity has never before been so high during the summer period if we count June to August as a whole," johan Sigvardsson, analyst at Bixia, said in an article from Dagens Industri.
That sums up this summer's electricity market. Mainly in southern Sweden, where the daily average price ended up at SEK 1.05 per kilowatt hour as recently as Tuesday. That's just $0.04 from the absolute peak set on August 12 this year.
"If we compare it to last summer, where prices were the lowest ever, the contrasts will of course be very large.
Average prices for the whole country have only increased during the summer. In June, the spot price, which controls variable electricity prices, averaged 44 cents per kWh in June, 55 cents in July and 63 cents in August.
"Fossil power plants drive up electricity prices"
Jacob Dalton, electricity price expert at Tibber, predicts in an interview with DI that the trend will continue.
"Many of us have enjoyed the hot summer in Sweden, but it has also been very dry. This means that the levels of the reservoir are unusually low and this affects hydropower production," Dalton says in the interview and continues:
"We have also seen record fuel prices in Europe due to supply constraints all over the world and demand has increased after the coronavirus. In addition, there have been record carbon prices. This results in higher costs for fossil power plants, which then drive up electricity prices.
