Thursday, March 27, 2025

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Price explosion in the Baltics after disconnection from the Russian grid

The energy crisis in Europe

Published 14 February 2025
– By Editorial Staff

The Baltic countries have recently disconnected from the Russian electricity grid and joined the European system. Electricity prices in the countries are now skyrocketing.

Over the weekend, Estonia, Latvia and Lithuania disconnected from the Russian grid and connected to the grid in Finland, Sweden and Poland. Shortly afterwards, electricity prices rose sharply, Euronews reports.

Last week, the price of electricity in Estonia stood at €126 per MWh. After the switch, it has risen to €191 per MWh, the highest recorded so far in 2025.

However, the Estonian electricity and gas network operator says that the price increase is mainly due to weather conditions and the market situation.

Less wind this week, higher electricity consumption due to colder weather and a slight increase in gas price”, it states.

Gas prices have reached record levels on the Dutch TTF market in recent years, but are expected to fall. Meanwhile, the Lithuanian-Swedish Estlink 2 submarine cable has recently been damaged by an anchor, which has negatively affected electricity prices.

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EU’s new regulations threaten the future of wood-burning stoves

The energy crisis in Europe

Published 21 March 2025
– By Editorial Staff
For many, the wood-burning stove is not only a source of energy but also a symbol of tradition and independence.

EU plans to tighten rules on wood-burning stoves and fireplaces have become a source of debate within the EU and not least in Sweden. Stricter emission limits and electricity connection requirements risk increasing costs for users by thousands of euros a year and affecting a beloved heating method.

The European Commission is currently drafting a new Ecodesign Regulation and plans to introduce it in 2027. The proposal lowers the soot particle limit from 1 500 milligrams to 500 milligrams and requires new stoves to be connected to the electricity grid for automatic combustion control.

The aim is to reduce emissions and support the EU’s climate goals, but the rules only apply to new installations – not to existing stoves.

Critics have reacted strongly to the proposal. The industry association CEFACD, which represents manufacturers of stoves and fireplaces, warns of soaring costs and fewer people upgrading to modern models.

“Threat to Swedish interests”

Frank Kienle from CEFACD states in conversation with Samnytt: – Higher prices can discourage upgrades, which harms both the environment and the industry.

– Some development is needed. It’s the same with the car industry. The lifetime of a car is maybe ten to fifteen years. For a stove it is a bit different. It can easily last for fifty years.

Swedish politicians, such as Beatrice Timgren (SD), agree and point to the risks for Sweden’s total defense, where stoves play an important role during power outages.

– The proposal now on the table is a direct threat to Swedish interests. Our total defense cannot be made dependent on the electricity grid, says Beatrice Timgren.

Translation of above tweet: “Who is affected by this proposal? There are at least 1.9 million different types of stoves and fireplaces in Sweden today. Like almost everything else in our lives, they are subject to EU micromanagement. A plethora of directives, regulations and decisions from Brussels govern every detail of the design of the products used to heat many of our cottages and houses.

House, villa and cottage owners can be forced to pay for expensive renovations and be forced to use less efficient heating systems. This is an ill-considered blow to the Swedish dream of disconnected and natural cottage life.

The rules are now proposed to be changed and will be discussed in the Commission’s expert group Forum on Ecodesign and Energy Labeling”

“The wood stove rebellion”

Sweden has a history of resistance to similar rules. In 2017, the National Board of Housing, Building and Planning introduced a ban on new installations of older wood-burning stoves, but after protests via the Facebook group “Vedspisupproret” (The Wood Stove Rebellion), the authority backed down two years later.

The movement brought together thousands of Swedes to defend the cultural and practical value of the stove, and the government was even sent logs to protest.

The current proposal is causing concern among small house owners, especially in sparsely populated areas. Electricity connection requirements work poorly for holiday homes without access to the electricity grid, with estimated costs of tens of thousands of euros for some users.

The industry argues that modern stoves meet the high standards set by the 2022 ecodesign rules, which reduce emissions by up to 90% compared to older models.

However, the EU’s work on the regulation has faced obstacles. Euractiv reported in February this year that the European Commission is postponing the presentation of the draft due to technical adjustments.

Timgren’s comments capture the frustration of many who see the stove as part of Swedish life, not just a source of heat. Meanwhile, European manufacturers risk losing ground to cheaper Chinese alternatives, according to CEFACD

Translation of above tweet: “What might the cost be? If cottage owners want to heat their houses, they will have to arrange their own electricity supply. If you live 600 meters from a connection point, such a connection costs SEK 148 875 (€13,600), according to Vattenfall.  There are over 610,000 holiday homes in Sweden. This is an attack on Swedish cottage life.”

Tradition and independence.

A 2018 European Commission report shows that domestic wood burning causes over 45% of fine particle emissions in the EU, despite accounting for only 2.7% of energy use.

Proponents argue that stricter requirements will improve air quality, while others wonder whether better information on burning techniques would be more effective. The debate thus reflects a difficult balancing act between different interest groups.

Past protests show that stoves are not just about heating, but also about tradition and independence. As the EU fine-tunes the rules, it will be crucial to balance environmental benefits against practical and cultural needs a challenge that is expected to continue to shape the debate until 2027.

Reports: US in secret talks to restart Nord Stream 2

The energy crisis in Europe

Published 5 March 2025
– By Editorial Staff
Nord Stream 2 was attacked in the fall of 2022.

US President Donald Trump’s special envoy, Richard Grenell, has traveled to Switzerland on several occasions to negotiate the possible reactivation of the Nord Stream 2 gas pipeline, reports German newspaper Bild, citing sources with knowledge of the matter.

Nord Stream 2, intended to complement the already operational Nord Stream 1, was completed in 2021 but never put into operation. In September 2022, the pipelines were subjected to a series of underwater explosions, leading to serious leaks and impacting European energy supplies.

German media have previously suggested that a Ukrainian team was behind the sabotage. Award-winning journalist Seymour Hersh argues instead that the blast was a sabotage operation led primarily by the US and Norway.

A section of the pipeline is still intact and filled with gas, but Germany has refrained from using it for political reasons.

According to the report, the deal would provide economic benefits to the US if gas flows resume after a potential ceasefire in Ukraine and a lifting of sanctions.

Richard Grenell was previously ambassador to Berlin during Trump’s first term, and is now his specific envoy for “special missions”.

According to Bild, Grenell made several unofficial trips to Nord Stream’s operator in Zug, Switzerland, to negotiate a deal.

American investors

During his first term, Trump was critical of Nord Stream 2 and also imposed sanctions on the project. However, since taking office in his second, current term, he has pushed for closer relations between the US and Russia and hinted at possible easing of trade restrictions.

According to reports, US investors would prevent the bankruptcy of Nord Stream 2 by buying a stake in the company. They would act as intermediaries for the delivery of Russian gas to Germany and Central Europe via the pipeline.

In addition, Washington would gain significant influence over Germany’s energy supply, according to Bild, which stresses that the US government would not be directly involved, but that US financial players planned to participate in the deal.

According to Bild, the German government has not been involved in the reported talks, and sources in Berlin say they were unaware of Richard Grenell’s meetings in Switzerland. Grenell himself has denied any involvement.

Meanwhile, the Financial Times stated on Sunday that the talks were allegedly brokered by Matthias Warnig, former chief executive of the Switzerland-based Nord Stream 2 operator.

The Financial Times further claimed that one of the US-led consortia has already drawn up a plan for a deal with Russia’s energy giant Gazprom. A deal they say could be finalized after sanctions against Moscow are lifted.

Economics writer on the European electricity market: “A failed joke”

The energy crisis in Europe

Published 12 December 2024
– By Editorial Staff
Due to electricity prices, even a quick shower has become an unaffordable luxury for many.

Yesterday, electricity prices in southern Sweden were at times 18,000% higher than in central Sweden – because there was no wind in Germany.

Economy reporter Andreas Cervenka notes that Swedish electricity customers have been overcharged by more than SEK 300 billion (€26 billion) via their electricity bills, and says the Swedish electricity market is “starting to look like a very failed joke”.

Anyone living in Malmö or “Electricity Area 4”, which is apparently this nation’s new name, can expect to pay just over SEK 31, including VAT, for a ten-minute shower at five o’clock today,” he writes in the tabloid Aftonbladet, while seeing how electricity customers in Sundsvall only have to pay SEK 0.17 for the same shower.

That’s a price difference of 184 times or 18,000%. In addition, there are various fees, so it’s actually even more expensive. It’s as if Malmö residents were to pay SEK 3,700 for a liter of milk and Sundsvall residents a twenty. Where is this even going?” he asks.

According to observers and analysts, it’s Germany’s fault, and they are extremely dependent on wind power. When there is no wind there, Sweden is instead drained of electricity via the export cables, and electricity becomes more expensive here at home.

“A proof of poverty”

Cervenka points out that the mechanisms behind electricity prices are very confusing and that the soaring electricity prices have made Swedes sit down and Google the current day’s or hour’s prices before turning on the shower, for example

Somewhat of a proof of poverty, you might say, for one of the world’s richest countries, which last year actually produced more electricity than we used. The difference was quite large, as much as 28 terawatt-hours, according to the Swedish Energy Agency, which corresponds to 5.6 billion ten-minute showers, for those who are wondering”, he states.

Andreas Cervenka. Photo: faksimil/AB/YT

In the past, policymakers have blamed the extreme price differences on a lack of transmission capacity in the electricity grids, and EU directives recently introduced the new “flowbased” model, which was supposed to make more efficient use of the electricity grids.

Analysts and experts were critical of the new model and warned that prices would soar further – and by all accounts, they were right.

“A masterless grid monopoly”

According to electricity market analyst Bengt Ekenstierna, the Swedish electricity market will be even more closely linked to Germany than before, and he is saddened that Swedish politicians seem to have abandoned all attempts to influence other EU countries’ views on the electricity market.

It is the duty of every politician to put their fist on the table and work to change when applied EU regulations lead to such effects as it has had on the electricity market in Sweden over the past 3 years. Electricity customers have been overcharged by more than SEK 300 billion via their electricity bills”, he states in a newsletter.

… and that doesn’t even account for the 100 billion in overcharges occurring through skyrocketing and uncontrolled electricity grid fees from a masterless grid monopoly”, he continues.

300 billion is a sum so large that it is difficult to grasp, according to Cervenka, who concludes by announcing that he will take a “long, expensive shower” and try to forget what he just read.

Someone must be making fun of us”, he concludes.

Swedish homeowners protest against the “energy fiasco”

The energy crisis in Europe

Published 31 October 2024
– By Editorial Staff
Many Swedes testify that they can no longer afford to heat their homes.

The Swedish Homeowners’ Owners Association (Villaägarnas Riksförbund) is now calling on its members to protest against Sweden’s exorbitant energy costs.

In recent years, electricity prices have risen sharply in Sweden and many households have found it difficult to pay their electricity bills. Before last winter, more than half of Swedes were worried about how they would afford to pay for their electricity.

Now the Swedish Homeowners’ Association has decided to protest against the country’s energy market and is urging its members to share how it has affected them.

– Enough is enough! Sweden’s energy market is fundamentally broken and politicians need to hear the people’s dissatisfaction and address the problems – once and for all, says Cecilia Reuter, President of the Swedish Homeowners’ Association, in a press release.

The aim of the protest is to show the consequences of the current energy market. Hundreds of stories have been received from the organization’s members who, among other things, testify to how they are forced to freeze when they can no longer afford to heat their homes.

“Something is very wrong”

I won’t be able to afford heating at home if prices go up. Even last winter I had to turn down the heating and dress warmly to try to keep costs down. Should my daughter have to sleep in overalls so that I can afford both food and electricity?”, writes Mikael from Enköping, for example.

We have 15–16 degrees indoors in winter. During the summer, we can’t afford to replace anything for heating the house because all the money has to be saved to survive the coming winter. When taxes are higher than the cost of electricity itself, it affects the food on the table, and the children have to walk on cold floors – that’s when something is very wrong”, says Emil from Härnösand.

In January, all the stories will be printed and placed on the desk of Energy Minister Ebba Busch.

– As Energy Minister, Ebba Busch is ultimately responsible for Sweden’s energy market. It is no good blaming previous governments or hiding behind EU directives. Voters are suffering under the pressure of a wild and unpredictable energy market. Please act, Ebba! says Reuter.

Facts: The Swedish Homeowners' Owners Association

The Swedish Homeowners' Owners Association (Villaägarna Riksförbund) is a non-profit consumer and interest organization for residents and owners of detached houses, i.e. villas and holiday homes.

The organization also has a business area, Samfällheterna, which offers security agreements with help, support and insurance to community associations.

In 2023, The Swedish Homeowners' Owners Association had 230 000 member households.

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