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After Northern Electricity Price Shock, Sweden and Finland Investigate New Power Line

Economy & businessEconomy
Key Points
  • Swedish and Finnish grid operators are investigating Aurora Line 2, a second 400 kV power line between Norrbotten and Finland.
  • The existing Aurora Line contributed to higher electricity prices in northern Sweden during winter conditions, according to reports.
  • No decision has been made to build the new power line, with investigations ongoing to assess benefits and impacts.

Following an electricity price shock in northern Sweden, Swedish and Finnish grid operators are investigating a second high-voltage power connection between the countries. According to Norrländska Socialdemokraten, the existing Aurora Line power connection, combined with winter cold and low wind conditions, contributed to pushing electricity prices higher in northern Sweden, with prices sometimes exceeding those in southern Sweden.

Svenska kraftnät (SVK) and its Finnish counterpart Fingrid are now planning Aurora Line 2, another 400 kV power line between Norrbotten in Sweden and Finland. The project is currently under investigation to clarify its benefits and potential effects.

it is difficult to assess how electricity prices could be affected, noting there are several different scenarios

Oskar Engblom, power system specialist at SVK

Oskar Engblom, power system specialist at SVK, stated that it is difficult to assess how electricity prices could be affected, noting there are several different scenarios. No decision has been made to build the next power line to Finland, and neither a direction decision nor an investment decision has been taken. Fingrid has reportedly published information about the project on its website.

The investigation into Aurora Line 2 comes as authorities examine the impacts of cross-border electricity transmission on regional power markets in northern Scandinavia.

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