Sweden's electricity market has experienced significant fluctuations recently, with prices reaching a peak of ****** euros per megawatt-hour in December 2022. In October 2025, the average wholesale electricity price amounted to ***** euros per megawatt-hour, reflecting a substantial decrease from the historic high. Economic factors influencing electricity prices The fluctuations in electricity prices can be attributed to various economic factors affecting Sweden. The Consumer Price Index (CPI) in the country has shown a steady increase since 2015, rising from *** to 418.13 in August 2025. Consumer sentiment and household concerns The economic instability has had a significant impact on consumer confidence in Sweden. In November 2023, the consumer confidence index (CCI) reached *****, having fallen to a low of 93.92 in October. This decrease in consumer sentiment was reflected in household concerns, with nearly two out of three Swedes expressing worry about increasing household expenses.

In the third quarter of 2025, Bermuda had the highest household electricity prices worldwide, followed by Ireland, Italy, and Germany. At the time, Irish households were charged around 0.44 U.S. dollars per kilowatt-hour, while in Italy, the price stood at 0.42 U.S. dollars per kilowatt-hour. By comparison, in Russia, residents paid almost 10 times less. What is behind electricity prices? Electricity prices vary widely across the world and sometimes even within a country itself, depending on factors like infrastructure, geography, and politically determined taxes and levies. For example, in Denmark, Belgium, and Sweden, taxes constitute a significant portion of residential end-user electricity prices. Reliance on fossil fuel imports Meanwhile, thanks to their great crude oil and natural gas production output, countries like Iran, Qatar, and Russia enjoy some of the cheapest electricity prices in the world. Here, the average household pays less than 0.1 U.S. dollars per kilowatt-hour. In contrast, countries heavily reliant on fossil fuel imports for electricity generation are more vulnerable to market price fluctuations.

Electricity prices in Europe are expected to remain volatile through 2025, with Italy projected to have some of the highest rates among major European economies. This trend reflects the ongoing challenges in the energy sector, including the transition to renewable sources and the impact of geopolitical events on supply chains. Despite efforts to stabilize the market, prices still have not returned to pre-pandemic levels, such as in countries like Italy, where prices are forecast to reach ****** euros per megawatt hour in September 2025. Natural gas futures shaping electricity costs The electricity market's future trajectory is closely tied to natural gas prices, a key component in power generation. Dutch TTF gas futures, a benchmark for European natural gas prices, are projected to be ***** euros per megawatt hour in July 2025. The reduced output from the Groningen gas field and increased reliance on imports further complicate the pricing landscape, potentially contributing to higher electricity costs in countries like Italy. Regional disparities and global market influences While European electricity prices remain high, significant regional differences persist. For instance, natural gas prices in the United States are expected to be roughly one-third of those in Europe by March 2025, at **** U.S. dollars per million British thermal units. This stark contrast highlights the impact of domestic production capabilities on global natural gas prices. Europe's greater reliance on imports, particularly in the aftermath of geopolitical tensions and the shift away from Russian gas, continues to keep prices elevated compared to more self-sufficient markets. As a result, countries like Italy may face sustained pressure on electricity prices due to their position within the broader European energy market. As of August 2025, electricity prices in Italy have decreased to ****** euros per megawatt hour, reflecting ongoing volatility in the market.

The prices that non-household consumers paid for electricity in Sweden hit 13.23 euro cents per kilowatt-hours in 2022, for an annual consumption of less than 2,000 megawatt hours. For users with a consumption between 20 and 70 gigawatt hours, prices averaged almost 11 euro cents per kilowatt-hour that year. That year, despite the ongoing energy crisis, Swedish consumers enjoyed one of the cheapest industrial electricity prices among European countries.

As of November 2025, Denmark had the highest average day-ahead electricity price among Nordic countries, amounting to ***** euros per megawatt-hour. Over the past few years, electricity prices soared in the Nordic region, the result of a global energy crisis that affected fossil fuels and electricity prices. Price variations across Nordic countries While Denmark had the highest electricity prices in October 2025, other Nordic countries see varying rates. Norway, for instance, recorded the lowest day-ahead weekly price at just **** euros per megawatt-hour that same month. This stark contrast underscores the regional differences in electricity production and consumption patterns across the Nordic countries. Electricity traded outside of the NordPool market is not reflected in these prices. Factors influencing Nordic electricity prices The disparity in electricity prices across Nordic countries can be attributed to various factors, including reliance on different energy sources. Iceland, for example, benefits from its fully clean electricity sector, resulting in some of the lowest household electricity prices in the region. In contrast, countries like Denmark and Finland face higher prices due to their partial dependence on fossil fuels. For non-residential consumers, prices also vary significantly, with Iceland offering the lowest rates at ***** euro cents per kilowatt-hour and Denmark the highest at ******euro cents per kilowatt-hour for annual consumption below ***** megawatt-hours in the first half of 2025. Despite having the highest industrial electricity prices among Nordic countries, Denmark's rates remain competitive compared to other European countries like Italy or Germany.

In the week starting October 6th, 2025, the lowest day-ahead price of electricity traded on the NordPool spot market was recorded in Norway at **** euros per megawatt-hour. The highest day-ahead price was recorded in Denmark at *******euros per megawatt-hour. The Nordic spot market is divided into sub-regions to balance production and consumption, and avoid congestion of the electricity grid. Only a part of the electricity supplied to Denmark, Sweden, Finland, and Norway is sold on the NordPool market, with the remainder exchanged through long-term or bilateral contracts.

Wind Power in Sweden, Market Outlook to 2025, Update 2015 – Capacity, Generation, Levelized Cost of Energy (LCOE), Investment Trends, Regulations and Company Profiles is the latest report from GlobalData, the industry analysis specialists that offer comprehensive information and understanding of the wind power market in Sweden. The report provides in depth analysis on global renewable power market and global wind power market with forecasts up to 2025. The report analyzes the power market scenario in Sweden (includes conventional thermal, nuclear, large hydro and renewable energy sources) and provides future outlook with forecasts up to 2025. The research details renewable power market outlook in the country (includes wind, small hydro, biopower and solar PV) and provides forecasts up to 2025. The report highlights installed capacity and power generation trends from 2001 to 2025 in Sweden wind power market. A detailed coverage of renewable energy policy framework governing the market with specific policies pertaining to wind power is provided in the report. The research also provides company snapshots of some of the major market participants. The report is built using data and information sourced from proprietary databases, secondary research and in-house analysis by GlobalData’s team of industry experts. Read More

Biopower in Sweden, Market Outlook to 2030, Update 2017 – Capacity, Generation, Levelized Cost of Energy (LCOE), Investment Trends, Regulations and Company Profiles is the latest report from GlobalData, the industry analysis specialists that offer comprehensive information and understanding of the Biopower market in Sweden.
The report provides an in-depth analysis on global renewable power market and global Biopower market with forecasts up to 2030. The report analyzes the power market scenario in Sweden (includes conventional Hydro, nuclear and renewable energy sources) and provides future outlook with forecasts up to 2030. The research details renewable power market outlook in the country (includes Wind, small hydro, biopower and renewable) and provides forecasts up to 2030. The report highlights installed capacity and power generation trends from 2006 to 2030 in Sweden Biopower market. A detailed coverage of energy policy framework governing the market with specific policies pertaining to Biopower market development is provided in the report. The research also provides company snapshots of some of the major market participants.
The report is built using data and information sourced from proprietary databases, secondary research and in-house analysis by GlobalData’s team of industry experts. Read More

The Nordic countries of Iceland, Norway, Finland, and Sweden recorded the largest electricity demand per capita in Europe over the last few years. In 2023, Iceland’s per capita electricity demand averaged at almost 52 megawatt-hours per person, more than twice the consumption of runner-up Norway. Meanwhile, France, the largest electricity producer among the European Union countries, had an average per capita consumption of seven megawatt-hours in 2024. Why is electricity consumption so high in Iceland? The intense electricity consumption in Iceland stems from a combination of factors. On the one hand, due to its abundant natural resources, hydro and geothermal are the main sources of electricity generation in Iceland, allowing the country to produce power at high reliability and very low costs. Meanwhile, on the demand side, Iceland is home to some particularly energy-intensive industries – in 2023, it ranked among the largest aluminum smelter producers worldwide. To top it off, electricity demand is also high on the household sector side, due to the Nordic country’s long, dark, and cold winters. A similar combination of factors can also be found in Norway. How cheap is electricity in Iceland? In 2024, household electricity prices in Iceland averaged between 18 and 22.2 euro cents per kilowatt-hour, depending on the level of demand. In comparison to the average household electricity price in the European Union in the same period, it was around 40 percent cheaper. Iceland had one of the lowest residential electricity prices in Europe. On the other side of the spectrum, Germany, Denmark, and Belgium reported the highest prices in the region.

It is forecast that the price for solar PV power purchase agreements between 2025 and 2034 in Europe will range from an average of roughly *** euros per megawatt hour in Sweden to ** euros per megawatt hour in Italy. Italy is the country with the lowest price estimates for the region, followed by Spain and Portugal.

In the first quarter of 2024, wind and solar PPA prices in Europe declined in comparison to the previous quarter, reaching **** and **** euros per megawatt hour, respectively. The price of power purchase agreements for wind and solar projects in Europe has presented a decreasing trend over the last year.
Wind and solar prices in European countries On average, wind PPAs are forecast to reach higher prices than solar across Europe. For a 10 year pay-as-produced standard PPA starting in 2025, wind prices are expected to be the lowest in countries such as Spain, Norway, Ireland, the Netherlands, and Sweden, all with an average forecast price below ** euros per megawatt hour. On the other hand, Southern European countries such as Italy, Spain, and Portugal registered the lowest forecast solar PPA prices.
The European corporate PPA market 2023 was a record year for corporate power purchase agreements in Europe. The region contracted **** gigawatts of renewable capacity through corporate PPAs, an increase of almost ** percent in comparison with the previous year. Spain and Germany were by far the countries with the largest corporate PPA contracted capacity that year, which amounted to *** and *** gigawatts of renewable energy, respectively.