germany doesn’t split the power grid into cost regions, like most other countries. that means you get the same price everywhere, regardless of if you live in an area with a power surplus or a deficit. as far as i understand germany, most generation is in the north and most heavy industry is in the south. with cost regions, the north would have cheaper electricity and the south would have reason to invest in generation capabilities. as it is, your power is expensive everywhere and you need to import a lot.

sweden has lots of surplus capacity in the north, but not the infrastructure required to get all that power to the south. when germany buys a lot of our power, the extra demand drives up the price in the southern region, which means they need to “buy” power from further north, which pulls those prices up with it.

there has been some talk here about putting “export duties” on electricity to prioritise domestic users, but i don’t know if the eu allows for that.