Skip to content
Subscriber Only
Climate changed

Sweden’s Biggest Cities Face Power Shortage After Fuel-Tax Hike

  • Lack of grid capacity worsened by less local power generation
  • Stockholm and Malmo are already rejecting new big users
Sweden's Lack of Electricity Capacity Is Threatening Growth
Photographer: Mikael Sjoberg/Bloomberg

Sweden’s introduction on Thursday of a tax aimed at phasing out the nation’s last remaining coal and gas plants to curb global warming comes with an unintended consequence for some of its biggest cities.

Hiking threefold a levy on fossil fuels used at local power plants will make such facilities unprofitable and utilities from Stockholm Exergi AB to EON SE have said they will halt or cut power production.