Regression Analysis of Various Factors’ Impact on Electricity Prices in Sweden

With drastic increases in electricity prices throughout 2021, the public’s en- gagement in the discourse about the cost of electricity has reached new heights. With this in mind, this project was set in motion to try to make sense of factors that affect electricity prices in Sweden and thus identify areas of interest that further research could focus on.The variables chosen to be investigated were: Temperature, Exchange rate be- tween SEK and EUR, Export of electricity, Import of electricity, Inflation, Price of coal, Price of natural gas, and Price of crude oil. The data was gathered from various sources and was used to create a linear regression model.Exchange rate between SEK and EUR, Export of electricity, Inflation, Price of coal and Price of natural gas were found to be significant predictors of elec- tricity prices in Sweden and the source of electricity, economic policy, and energy trade were the areas of interest for further research