Swedish Energy Policy

Relative Energy Supply 1800-2000

coal

hydro

wood

oil

nuclearnew RES

Current Energy Supply

Energy policy goals

• Security of supply, competitiveness, sustainability (Shared IEA goals)

• Energy efficiency (20% until 2020, 50% in building sector 2050)

• New renewable electricity, 17 TWh 2016 (~13 % of electricity supply),

• Siting for wind power 10 TWh by 2015

• Reduce/break oil dependency by 2020

EU goals

Energy efficiency 20% by 2020

Renewable energy 20% by 2020

Greenhouse gas emissions -20% by 2020 alt. -30%.

Single european market

Target: efficient energy markets

• Electricity market is already fully competitive

• Common Nordic Electricity Market

• (Small) Natural gas market has been fully opened in 2007

• Increased transparency in the District heating markets needed

Policies and measures - examples

• Economic instruments– Taxation, notably Carbon tax

– Electricity Certificates

– Emissions trading

– Program for improving energy efficiency in energy intensive industry (PFE)

• Research, development, demonstration, dissemination

• Information

• International cooperation

Financial Policy Measures in Sweden

Energy Policy Climate PolicyBusiness

Policy

IndustryHousing Transport Power Heat Service

Emission TradeElectricity Certificate Energy Taxes CO2 TaxationPFE

EU-directives, internationalization, development in other countries

More recent developments

• Emission trading system

• Programme for energy efficiency in industrial sector

• Responsibility for whole RTD budget

• Additional focus on market introduction, innovation and commercialization

• Initiatives for a new Climate Policy

Commitments on Climate Issues

• National Climate Commission, gives policy recommendations to the Government on new Climate Bill in 2008

• Scientific Council provides scientific assessments as second input to the Climate Bill

• Climate investment program (SEK 1 billion)

– sustainable cities,

– energy efficiency measures,

– pilot and demonstration projects for biofuels,

– network for windfarming

– climate research

– international investments

Programme for Energy Intense Industry - PFE

• Industry gets tax exemption on electricity

• In return, the companies have to improve their energy efficiency

• 126 companies participate, using in total 30 TWH electricity per year (2004).

Swedish Energy ResearchFocus areas

• Buildings as energy systems

• Energy intensive industry

• Transport sector

• Electricity generation and distribution

• Bioenergy including CHP (Combined Heat & Power)

• Energy system studies

The Major Issues

• Increased competition for energy resources

• Climate impact from energy sector

• Internationalisation of energy policy

• Properly functioning energy markets

• Various political targets; complex set of incentives

The Road to Future

Challenges:

• Electricity supply for energy intensive industry

• Sustainable mobility

• Low energy municipal sector

Critical factors:

• Utilise research results

• Ambitious and realistic programmes for

– Energy efficiency

– Renewable energy

Long time perspectiveLong time perspectiveHolistic perspectiveHolistic perspectiveCo-operationCo-operation

Three strategic development plants

Ethanol from cellulose Synthesis gas from biomass

Synthesis gas from black liquor