Nordics power outlook summary Q2 2025

Download our Nordics power outlook summary Q2 2025 (formerly known as SySpower long-term power outlook) to explore in-depth insights into the evolving energy landscape in the Nordic and Baltic regions. Gain the clarity you need to plan effectively for a more resilient, low-carbon future.

Topics covered in the Nordics power outlook Q2 2025

1. Europe’s energy markets post-crisis: recovery and resilience

The initial shockwaves of the Russian-Ukrainian war, now in its fourth year, once deeply disrupted European energy markets. However, as the Q2 2025 Nordics energy outlook reveals, energy prices and supply dynamics have largely stabilised. Strategic policy interventions—most notably from the EU—have strengthened energy security and reduced dependency on Russian imports.

Yet, new geopolitical uncertainties loom large. Future support for Ukraine and potential policy shifts under a Trump administration are emerging as fresh risks, reinforcing the need for long-term planning and flexible infrastructure investment.

2. The renewable boom and the investment shift

Elevated electricity prices in recent years have led to a surge in renewable energy project deployments, especially in wind and solar. This expansion is now beginning to ease power prices and compress capture rates. However, investment challenges are also mounting. Rising inflation, higher capital costs, and ongoing supply chain disruptions are reshaping investment strategies.

Investors are increasingly focused on project profitability, locational pricing signals, and the changing dynamics of capture rates, especially as offshore wind faces delays and demands additional subsidies. On the upside, battery storage continues to thrive, leveraging market volatility and declining costs to support grid integration.

3. Hydrogen’s mixed momentum and nuclear’s return

While hydrogen remains central to long-term decarbonisation plans, its adoption has slowed due to limited demand and a lack of cost decline. That said, its strategic role in supporting intermittent renewables like wind power keeps it firmly on the radar.

At the same time, nuclear energy is regaining momentum, with multiple countries exploring lifetime extensions and new small modular reactors (SMRs) to support baseload capacity in an increasingly electrified grid.

4. Policy, grid reforms, and the rise of flexibility

Across the Nordics, 2024 saw updated long-term strategies from Transmission System Operators (TSOs) and national regulators, underscoring commitments to full-scale electrification and renewable deployment. As electrification spreads through transport, industry, and hydrogen production, demand is expected to continue rising—despite some downward adjustments to projections.

This increase in renewable capacity is also creating a more complex power system, demanding improved balancing capacity and smarter flexibility solutions. From hydrogen storage to battery systems, the emphasis on flexibility is now a cornerstone of energy planning.

What’s inside the Nordics power outlook Q2 2025?

The Nordics Power Outlook Q2 2025 offers a 40-year fundamental forecast for the Nordic and Baltic power markets. Key features include:

• Base, High, and Low sensitivity scenarios reflecting policy, pricing, and decarbonisation pathways

• Monthly and annual capture rates for solar, onshore, and offshore wind

• Updated commodity price forecasts, including thermal and EUA

• Revised projections for green hydrogen integration and TSO-backed transmission expansions

• Data-rich web interface for downloading and visualising results

• In-depth analysis of political developments and energy security considerations

This year’s simulation, conducted using the robust EMPS power market model, provides a transparent, data-driven basis for decision-making across the energy sector.

Who should read the Nordics power outlook Q2 2025?

This report is essential for:

• Energy investors and developers evaluating renewable project viability

• Policymakers and regulators shaping long-term energy strategy

• Utilities and TSOs planning infrastructure upgrades and balancing capacity

• Corporate energy buyers looking to understand future market risks and price trends

Download your copy and increase your understanding of the challenges and opportunities posed by the Nordics/Baltic's energy future.