. Energy Minister Ebba Busch cited inefficiencies in the German electricity market as the primary reason for the decision, emphasizing that connecting southern Sweden—already facing an electricity production deficit—with Germany could lead to higher prices and increased market instability. The Hansa PowerBridge project, a collaboration between grid operators Svenska Kraftnät and Germany’s 50Hertz, aimed to facilitate the transfer of renewable energy from the Nordics to Germany.
A spokesperson from 50Hertz expressed disappointment over the missed opportunity to strengthen Europe’s internal electricity market but maintained that the Swedish decision would not affect the future security of supply and system stability within the 50Hertz network area. This development comes against the backdrop of Germany’s broader energy strategy. Recently, EU competition regulators gave informal approval to Germany’s plan to subsidize 10 GW of new natural gas-fired power capacity.