First quarter 2026: Vattenfall's CEO Anna Borg comments on the report

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We stay focused on operational excellence and financial discipline, while continuing to ensure reliable and stable electricity supply to customers, investing in fossil-free energy supply and enabling profitable business models in the energy transition. That is how Vattenfall contributes to increased resilience by reducing societal dependence on fossil fuels.

Turbulent first quarter highlighted the importance of resilience

The recent development of the energy market is once again demonstrating how continued dependency on fossil fuels results in societal vulnerability and higher energy costs. Sharp price increases put pressure on households and businesses, particularly those relying on fossil fuels. We are mindful of the situation and of our responsibility as an energy company. We support customers by offering long-term contracts, by solutions that help reduce consumption through efficiency and electrification, and by continuing to ensure reliable supply.

The importance of a resilient energy system was also highlighted when severe weather damaged the electricity grid in Sweden in the first days of the quarter. Through preparedness and strong collaboration, Vattenfall carried out essential repair and safety work under demanding conditions to restore supply to customers.

Higher electricity prices in the Nordic markets

In the Nordics, the electricity market was characterised by cold weather conditions, low wind production as well as weak hydrology. This drove up the average electricity prices, which were almost twice as high as in the first quarter of 2025. In Vattenfall’s Continental markets, electricity prices were about 10 per cent lower compared to the same quarter last year. This was due to lower average gas prices in the full quarter, despite rising gas prices in March, as well as higher wind production.

Strong underlying result supported by operational performance

Vattenfall reports a strong underlying operating performance in the first quarter. The underlying operating profit increased by SEK 8.7 billion compared with the first quarter of 2025, amounting to SEK 17.2 billion. Results improved across all business areas, especially in electricity generation where we delivered high availability and were impacted by the higher prices in the Nordics. Profit for the period increased by SEK 12.1 billion to SEK 18.1 billion.

While we have a strong financial result in the quarter, it’s worth mentioning that this level of volatility is not healthy for the energy market as a whole, as we depend on stable and predictable conditions both for us and our customers including industry.

Fossil freedom is the way forward

Following rising energy prices, the EU Emission Trading System (ETS) and electricity market design have been increasingly debated. The discussions reflect real concerns among businesses, however, weakening the ETS or marginal pricing would mean prioritising short term relief over long-term solutions. Regulatory stability is essential to stay the course towards fossil freedom, as it enables the investments needed to improve affordability, security of supply and competitiveness.

During the quarter, Vattenfall has continued to deliver on our strategy at a steady pace, with progress across our portfolio. Several assets have been commissioned including the Velinga onshore wind farm (67 MW) and a new battery at the Bruzaholm hybrid wind farm in Sweden and two new solar power parks in the Netherlands. The work towards new nuclear power in Sweden has continued, and the Nordlicht project in Germany is on track with the first monopiles and transition pieces for Nordlicht I completed ahead of schedule. Vattenfall has also expanded the regional grid in Luleå with a new 150 kV power line which strengthens security of supply and supports electrification in northern Sweden.

Through our dedicated progress towards fossil freedom, we aim to contribute to a more stable and resilient energy system over time. We are conscious that this transition is taking place during a period when many customers are under pressure from high electricity prices and broader cost increases. That makes our responsibility very clear, to act with discipline, deliver reliably, and stay focused on long‑term investments that reduce dependence on fossil fuels.