The shutdown of the Oskarshamn nuclear reactor is extended to October 17, leading to higher electricity prices in southern Sweden. The delay is due to challenges in repairing a defect with robots. This extension, combined with low water levels in Southern Norway and increased demand, will heighten reliance on continental imports, further driving up prices.
Extended Nuclear Shutdown in Oskarshamn to Spike Electricity Prices in Southern Sweden
Extended Nuclear Shutdown in Oskarshamn to Spike Electricity Prices in Southern Sweden
The shutdown at the Oskarshamn nuclear power plant is extended by another month, until October 17, as announced by the owner, Uniper.
"Prices in southern Sweden will rise now," says Christian Holtz, an electricity market analyst at the consultancy firm Merlin&Metis.
The only reactor in Oskarshamn has been inactive for nearly six months. It was initially scheduled to restart on September 17 after several delays.
The new date is October 17, following unsuccessful tests with robots designed to fix the leakage, according to production manager Andreas Roos.
"We need to address a defect in a hard-to-reach area of the facility. We've had to develop robots for the repair itself. Some tests didn't go as planned, so we need to improve these robots," he explains.
Uncertainty
Historically, complex reactor repairs tend to take longer than planned.
"There are still some uncertainties, but the stated start time is our absolute best estimate at present," says Andreas Roos.
The extended shutdown of Sweden's largest reactor in terms of capacity is expected to have price consequences, believes Christian Holtz.
"It primarily affects southern Sweden (electricity areas 3 and 4, i.e., Svealand and Götaland)," he says.
Importing Higher Prices
The reason is that Sweden already has a fragmented price picture with high prices in southern Sweden, especially in the far south. Low water levels in Southern Norway have a direct price effect on Sweden. Combined with the shutdown of nuclear power and increased consumption as it gets colder, prices will rise, according to Holtz.
"Southern Sweden becomes more dependent on imports from the continent and thus the higher prices there," he says.
The key factor will be how much it will be windy, i.e., how much wind power will contribute.