Operations and Electricity Markets

Svenska kraftnät is the system operator for electricity in Sweden. It means that we have an overall responsibility to keep the balance between production and consumption of electricity.

In order for the electrical system to work, there must always be a balance between the electricity produced and consumed. Therefore, we control and monitor Sweden's electrical system around the clock.

Balance management in the electricity system is based on planning

The responsibility for ensuring that there is enough output to meet consumption falls to the balance responsibility parties (BRP). Under the Electricity Act, an electricity supplier is obliged to supply as much electricity as its customers consume. The electricity supplier may take on this responsibility themselves for its electricity supply or transfer the responsibility to another company.

The balance responsible parties fulfill their obligation to maintain balance either by planning their production to meet their forecasted consumption, or by trading electricity with other balance responsible parties, often via a power exchange.

The balance responsible parties shall maintain balance within each imbalance settlement period. The imbalance settlement period is currently 1 hour, but it is planned to be shortened to 15 minutes in 2025. In retrospect, we check how the balance responsible parties throughout the country have managed. If any member of the balance responsibility parties have delivered too little or too much power compared with consumption for a given imbalance settlement period this is regulated economically afterwards. This is called balance settlement.

The weather affects the amount of electricity produced and consumed

The weather affects how much electricity can be produced by hydro and wind turbines. The weather is also of great importance for the amount of electricity consumed. On a cold and dark winter's day Sweden needs much more electricity than on a hot summer day. 

Electricity is bought and sold on a joint European market

There are several different power exchanges at which balance responsible parties can buy and sell electricity. These exchanges are coupled at a European level, enabling bids at one exchange to be cleared against bids from another exchange. This creates an integrated European power market. 

Electricity prices are determined by supply and demand of electricity

The availability of electricity and the amount of electricity demanded at a particular time affect electricity prices. When there is relatively much supply compared to demand, for example on windy days, the price tends to be lower. Conversely, when demand is high or supply low, the price will become higher.

The electricity price is determined per bidding area (Sweden is subdivided into 4 areas) and is therefore determined by the supply and demand in the respective bidding area.

We create opportunities for electricity trading

As a transmission system operator for electricity in Sweden, Svenska kraftnät is involved in creating rules and formulating agreements and procedures for trading electricity in Sweden, as well as at a European level.

We work actively with other transmission system operators in Europe to create a common electricity market in line with European legislation.

Electricity trade

The trading of electricity between balance responsible parties primarily take place on the so called day-ahead market, which, as the name suggests, take place the day before delivery.

The day-ahead market is a daily auction where power is traded based on bids from market participants for all hours of the next day. This market is complemented by the so called intraday market, where market participants can adjust their traded positions close to the operational hour.

Four bidding areas in Sweden

Sweden is divided into four bidding areas from bidding area SE1 in the north to bidding area Malmö SE4 in the south. The price of electricity in each bidding area is determined by supply and demand of electricity and transmission capacity between bidding areas.

In northern Sweden more electricity is produced than is needed, in southern Sweden it is the opposite. Therefore a large amount of electricity is transported from north to south Sweden.

There can be different prices in different bidding areas

Bidding areas can have different prices for electricity due to the physical limitations of the transmission grid. The boundaries between bidding areas are drawn where the main limitations are, in terms of how much electricity can pass. When the entire transmission capacity utilized for electricity trade between bidding areas, price differences will emerge.

On the page "The control room" you can follow the flows and prices in the bidding zones in real time. To the control room.

We produce statistics for production, consumption, imports and exports and more. Read more about our statistics.

The national grid needs to be expanded to meet the needs of society

A national grid that is operationally reliable is a prerequisite for the electricity supply and electricity market to function. The grid must also be able to transfer the amount of electricity that society needs.

We need to increase the national grid's capacity between bidding areas and strengthen it in order to receive electricity from new power plants, in particular wind turbine plants.

Therefore we are making great efforts to maintain and develop the national grid in the coming years. . Read more about our Grid development.

With production reserves we can restore operations in event of a disruption

When there are disruptions in the electrical system, unplanned events that cause power stations or lines suddenly to become disconnected from the network, we need to quickly start production in order to maintain the balance between production and consumption, or to relieve the grid. There are special production reserves that can be activated at such events.

When there is a risk of a power shortage

There is a risk of a power shortage in the electrical system when electricity demand is very high, such as in very cold conditions, while production and imports are not enough to supply the electricity needed.

We have a responsibility to procure and administer a power reserve that will reduce the risk of having a power shortage. Both reducing consumption and increasing production helps to create balance in the electrical system when there is a power shortage.