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Regional Effects of Swedish Nuclear Power Expansion: Electricity Prices, Trade Flows, and Geopolitics in a Common Electricity Market

This project investigates how an expansion of nuclear power in Sweden affects electricity prices and trade flows within the integrated European electricity market. The focus is on the impact in Finland, Norway, Denmark, Germany, and the Baltic states. Using electricity market models, we simulate various scenarios of increased Swedish production and their effects on regional electricity prices, trade patterns, and system balance.

Project manager
Erik Lundin

+46 (0)70 752 5847
erik.lundin@ifn.se

The study also analyzes the potential economic and strategic benefits for neighboring countries, such as reduced energy costs, lower price volatility, and improved energy security. Furthermore, the project explores how Swedish nuclear power can contribute to stabilizing an increasingly weather-dependent electricity system in the region.
Finally, we evaluate the incentives other countries may have to co-finance the expansion of nuclear power in Sweden.