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Second Opinion - Sthlmflex is being slowed down by Svenska Kraftnäts pricing policy, 11 March 2021

Trading in the flexibility market Sthlmflex has been limited because Svenska kraftnät set a very low price for its so-called temporary subscriptions to the regional network companies, write PA Consulting s Torbjörn Severinsson and Oskar Almén. By raising the price level of the temporary subscriptions, the regional network companies would choose to request demand flexibility rather than increase their power outlets against the main grid, they say. Few issues are in greater need of long-term action than energy policy. More efficient use of energy over the course of the day would reduce the risk of acute electricity shortages for industry in more geographically vulnerable areas and at the same time contribute to lower and more stable prices. The energy market is not an exception from other free markets where the price is governed by supply and demand. But the sharp fluctuations in the price per kilowatt hour during the beginning of the year are to some extent unique.

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