Sweden remains Europe’s largest net power exporter

Originally published on EnAppSys, now part of Montel Energy.

Sweden's net electricity exports total 17TWh

The EnAppSys report on European electricity trade trends showed Sweden’s net exports reached 17TWh, with the majority of power flowing to Finland (8TWh) and Denmark (4TWh).

Jean-Paul Harreman, Director at EnAppSys BV, explained:

“Sweden always has a steady flow of exports to Finland and the Baltics due to a constant price difference in favour of Swedish nuclear and hydro generation. The flows to continental Europe via Poland, Denmark and Germany are also relatively constant. With other traditionally large exporters saw much lower exports (Norway, due to a dry summer) or even imports (France, due to low nuclear availability), Sweden’s more diversified fuel mix ensured it retained its position as Europe’s largest exporter.”

Great Britain in net export position in 2022

For the full year 2022, Great Britain became a net electricity exporter, with 4.1TWh of power exported to continental Europe and Ireland.

France was the largest net importer of British power, largely due to nuclear constraints.

French nuclear challenges drive imports

Clement Bouilloux, French territory manager at EnAppSys, commented on France’s energy struggles:

“The persistent low availability of French nuclear power put added pressure on the European wholesale market as France has historically been a primary exporter in Europe. In total, 16.4TWh of power was imported by France in 2022, compared to the 43TWh of export in the previous year.”

Germany loses second place to Spain in power exports

Germany was the third-highest net exporter in 2022 with 9TWh, falling behind Spain, which rose to 11.6TWh in net exports.

“In addition, Germany was the third highest net exporter with total net exports of 9TWh. This meant that Germany lost its position to Spain as the second biggest net exporter to Europe, with Spain almost doubling its net export to 11.6TWh as a result of the Iberian exception and its gas price cap.”

“The price cap was implemented from June 15 for a price of 40€/MWh, making Spanish power extremely competitive all over Europe. As a consequence, Spain was able to export additional 5.1 TWh compared to the first half of 2022, filling almost half of the additional French needs of 11.4 TWh.”

Spain’s Iberian gas price cap boosts electricity exports

Spain’s energy system was more resilient during the European electricity crisis, aided by the Iberian gas price cap and diverse gas supply.

Its regasification and storage infrastructure enabled gas imports from North Africa and the U.S., while milder winter temperatures helped stabilise gas prices.

As renewable generation (mainly solar) increased and the price cap remained in place, Spain continued exporting affordable electricity to France in early 2023.

Norway faces export challenges amid low hydro reserves

Norway, historically a net power exporter, experienced a significant drop in hydro-based generation due to drought conditions.

“In addition to France, Norway also saw significant changes in its interconnector flows during the first half of this year... Recent data from Norway’s Directorate of Water Resources and Energy shows that reservoir levels in the region of Norway from where Britain gets its power fell from the seasonal average of 74.4% to just 49.3%. This is concerning, as Norway is considered to be one of Britain’s most reliable sources of imported power.”

Bulgaria leads net exports as a share of power demand

Bulgaria recorded the highest export percentage relative to domestic demand at 30.7%, driven by competitive nuclear and lignite generation.

Gabor Szatmari, EnAppSys CEE territory manager, stated:

“When net exports as a percentage of demand was taken into consideration, Bulgaria saw the highest percentage of its power generation exported (30.7%). With a large share of its power generated by nuclear and lignite, high gas prices moved Bulgarian power to the cheaper side of the merit order, with a lot of export to Greece, which has a very high gas dependency. Bulgaria also exported significant volumes of power to Romania and Serbia, which both struggled with low hydro during the summer months.”

He added:

“In the first half of 2023, we are likely to see Norway and France gradually moving up the ranking for highest exporters as Norwegian hydro reserves have filled up and French nuclear power is slowly coming back online.”

Italy remains Europe's top power importer

Italy was the largest net importer of electricity in Europe in H1 2022, sourcing 21TWh of power. Key import flows came from Switzerland (9.9TWh) and France (7TWh).

In summary: diverse energy mixes and market factors reshape European power trade

The second half of 2022 saw major shifts in the EU power export landscape, led by Sweden's nuclear-hydro stability, Spain's gas competitiveness, and France’s nuclear shortfalls. As 2023 unfolds, improving hydro levels and nuclear recovery may alter the balance yet again.