The governments of Sweden and Finland have announced plans to increase the liquidity of generators. A total of $33 billion in guarantees will be available to several countries in the future. Swedish Prime Minister Magdalena Anderson announced that the country will provide $23.2 billion in guarantees for electricity transactions in the Swedish market. On September 5, the Swedish parliament approved the policy, providing liquidity until March 2023.

Anderson also expressed concern that the growing demand to issue collateral assets around expensive power deals could itself cause problems. If we don't act, the financial system is at risk of severe disruption, and at worst it could lead to a financial crisis, she said. The guarantee will cover all Nordic and Baltic participants. This provides breathing space for neighbouring countries to develop their own measures.

The government of neighboring Finland made a similar announcement, providing a liquidity guarantee of 10 billion euros. Finnish Prime Minister Sanna Marin announced last-minute financing for companies facing bankruptcy threats to ensure the health of the electricity market.

In response to the announcement, Sweden's Vattenfall welcomed the move, saying it was financially stable. Finnish power generator Fortum said the move was critical to keeping the company afloat. Follow-up tweets highlighted the importance of changing European market infrastructure regulations. This can regulate financial markets and ensure that companies reduce systemic trading risk.

On September 9, 2022, EU energy ministers will hold an emergency meeting to discuss how to enhance liquidity in the electricity market. Before that, Politico said the current EU presidency, held by the Czech Republic, had come up with ideas including price caps and market controls. Keywords: engineering news, overseas news

Recently, the Russian government announced that it will no longer send natural gas to Europe through the Nord Stream 1 pipeline. This has caused electricity prices to rise, back to near-record levels in recent times. Previous restrictions on gas supply have led to further price increases, but the legislation appears to be preventing further development.Editor/XingWentao