The decommissioning of several large generating stations in southern Sweden has indeed affected the effective transmission capacity from the north.
Yes, local electricity bill would go up but if the price is often extremely low, selling some for higher price is a net win. Ie this is why we have trade as concept in the first place.
Not a good sign when right-wing governments are complaining about market based price signals and trade.
Just because Germany destroyed their electrical system it should not mean that companies in Sweden should go bankrupt. Germany tampered with the EU market, they ought to pay fines.
That said, the coalition also wants to improve the transmission lines.
Also, a lot of the new energy needs comes from "green steel", which would give massive reduction in the green house gas production required to produce steel.
But for that to make sense we need lots of clean energy.
Here in Finland the transmission costs before this current price hike were usually 50%+ (for me with my current fixed price contract they are around 60%) of the total electricity bill. We got a really good network but it does come with a cost.
Obviously with the current market prices the cost of the transmission capabilities is a rounding error but if we get back to the electricity prices of a year or two ago the costs of transmission could start to dominate the price again so you have to be careful about investments like this (just like you have to be with nuclear plants for the case that the price on the markets is goes permanently under your production costs)
And transmission capability upgrades are really long term investments. Sweden started lately to try and fix this issue. If that project finishes on time it will take 14 years to finish. These are the kind of timescales where building a new nuclear power plant can be a faster fix.
Completely unnecessary rules were put in place to create submarkets for north and south sweden, and it's these rules that disallow the transfer of the electricity. It's more profitable to limit production to keep prices high in sweden, then export and sell in other countries.
Hydro in sweden was overflowing and forced to produce more electricity in sweden during the fall, prices would be zero and even negative if supply and demand was actually in effect, but this would mean zero profits as well, so it's not allowed.
That's a strawman. There is energy transfer to all these places, but the capacity is limited in each case.
This is not why the oil plant exists, it is an emergency plant. If it is running 24/7 then it does so because the oil plant is profitable. Not out of necessity.
This feels like your splitting hairs because the root cause is ultimately the same: if it wasn’t necessary then it wouldn’t be profitable.
Logical fallacy
Its current operations are because even though it is an expensive oil plant it is profitable to run it for export on the European market.
A Swedish professor in energy systems looked closer at the electricity export compared to the operation of the plant, and out of hundreds of hours operated during this year something like 1-5 hours were not matched by equal or more electricity being exported than it produced.
https://www.youtube.com/watch?v=VgGy0Vhgt7E
In Swedish, sadly without subtitles, but an amazing overview of the Swedish electrical system.
To lower the prices in southern Sweden either southern Sweden or northern Germany must increase "plannable" electricity production to avoid expensive imports from the baltics.
Why the electricity is expensive is because the electrical grid is connected to northen europe and the expensive prices there makes the prices also goes up in Sweden because it is the same market.
https://www.scb.se/hitta-statistik/statistik-efter-amne/ener...
Unless the power plant would be able to flood the rest of the EU grid with cheap power to the point that the more expensive plants would be turned off, how would this prevent the price going up?
---
[0] https://www.euronews.com/my-europe/2022/08/09/watch-heres-ho...
If however there is a energy surplus in a region then two things happens. Reserve operators don't need to be used, and the speculative market risk holding energy that they can't sell, thus forcing lower prices.