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Energy:
Generating power for a sustainable future

Cutting-edge technology, a wealth of natural assets and a long tradition of energy research — Sweden is in the front line as the world embarks on a shift to more sustainable energy systems.

Despite high energy consumption, Swedish carbon emissions are low.
Despite high energy consumption, Swedish carbon emissions are low. Photo: Sesse Lind/Link Image

The International Energy Agency (IEA) ranks Sweden highly on most counts in its report from 2008: low carbon dioxide emissions, a high proportion of renewable fuels and an efficient electrical power market (“Sweden is one of the true pioneers in liberalized electricity sectors”). Ever since the oil crisis in the early 1970s, Sweden has invested heavily in the search for alternative energy sources. Its phase out of oil has proceeded smoothly. In 1970, oil accounted for over 75 percent of Swedish energy supply; by 2006, the figure was just 32 percent, chiefly due to the declining use of residential heating oil.

In Sweden, 43 percent of the energy supply comes from renewable energy. This is more than in most EU countries. Many of the measures introduced in Sweden are a result of the Renewable Energy Directive. Plus there are the requirements of the Kyoto Protocol concerning the reduction of carbon emissions and other greenhouse gases at global and national level.

Sweden outlined its present energy policy in 1997. The government wanted to promote “efficient and sustainable energy use and a cost-effective energy supply” that would “facilitate the transition to an ecologically sustainable society.” The Swedish National Energy Administration was set up for this and to monitor developments.

High power consumption — low emissions

Sweden consumes a great deal of electricity per capita (17,000 kWh per person per year). Only Iceland, Norway and Canada consume more. Yet Swedish carbon emissions are small in relation to other countries. The average Swede releases 5.8 tons of carbon dioxide per year into the atmosphere, compared with the EU average of 8.6 tons and the US average of 19.7 tons.

The reason for this low emission rate is that about 90 percent of electricity in Sweden comes from nuclear power and hydroelectric power, neither of which generate carbon emissions. Cogeneration, or combined heat and power (CHP), plants account for a further 10 percent of the electricity output in Sweden, and these are mainly powered by biofuels.

Renewable electricity

In 2003, green electricity certificates were introduced in Sweden to encourage the use of renewable energy. To be certified green, the electricity has to come from wind power, wave power, solar energy, geothermal energy, biofuels or small hydroelectric plants. Power consumers have to buy a certain number of green certificates — via their electricity bills — while power producers receive a certificate for every megawatt-hour (MWh) of renewable electricity they generate. The goal is to boost renewable electricity by 17 TWh (terawatt-hours) from 2002 to 2016. In addition, wind power has been further subsidized by means of a tax deduction scheme that will run until 2009.

Wind power is the fastest-growing renewable energy source in recent years. Installed capacity has trebled over the past decade. In 2007, the largest wind power park in northern Europe opened in the Öresund Sound, off the coast of southern Sweden. Altogether, 48 wind turbines are in place, generating a total of 110 MWh, which meets the electricity needs of 60,000 households.

Alternative fuels

Sweden puts a lot of effort into developing renewable, alternative fuels. Ethanol research began in the 1980s and Sweden is among the world leaders.

Most of the ethanol sold today is produced from grain, with varying consequences for the climate. From a lifecycle viewpoint — where climate impact is measured along the whole chain from production to use — ethanol extracted from sugarcane is favored. Swedish researchers focus on the production of ethanol from cellulose, referred to as second-generation biofuels. In most cases, this is a more effective method than grain-based production. What’s more, this type of ethanol does not affect food crops. Other biofuels of interest are different kinds of biogas that can be extracted from manure and waste, among other things.

The EU wants 7.75 percent of all fuel to come from renewable energy sources by 2010. By 2006, Sweden had reached 3.1 percent, mainly due to the increased use of ethanol. To speed up developments, a “pump law” was introduced in 2006
under which all gas stations selling more than 3,000 cubic meters of gas or diesel per year are required to supply at least one kind of renewable fuel.

Alternative fuels and hybrid cars are in the pipeline.
Alternative fuels and hybrid cars are in the pipeline. Photo: Sesse Lind/Link Image

Hybrid cars, i.e. vehicles that use electrical (battery) power and fuel, are up and coming. The combination of electricity and biofuels is a promising one. The next step is plug-in hybrids — cars with larger batteries charged from the power grid. In spring 2008, the Swedish Energy Agency, Volvo, Saab, Vattenfall and others embarked on an ambitious project to produce the next generation of plug-in hybrids. In July 2008, a Swedish-American joint venture for the development of a new type of plug-in hybrid was announced.

Conserving energy in industry

In 2005, Sweden introduced a special program designed to boost energy efficiency in industry. Under this program, the 180 or so power-intensive industries taking part are granted tax relief in exchange for drawing up energy plans and taking steps to reduce energy use. To date, the program has resulted in energy savings of about 1 TWh per year at a value of about SEK 500 million (about USD 62 million).

In the construction sector, the government wants a 20 percent reduction in energy use in building stock by the year 2020 (compared with 1995) and a 50 percent reduction per heated unit area by 2050. This has made energy-efficient housing a more interesting proposition. Passive houses are one example. These are built without conventional heating systems and are kept warm by the heat given off by their occupants. Extra thick insulation and intelligent ventilation systems ensure low energy use.

Since January 1, 2008, a new law on energy declarations has been in force in Sweden. Based on an EU directive and applying to all owners of private homes, apartment blocks and other premises, its aim is to promote more efficient energy use.

The government is investing heavily in information and advice for households on how to save energy. Each municipality —here are 290 in Sweden — has an energy adviser people can turn to for tips. These include changing windows, using low-energy light bulbs, switching to different heating systems and so on.

Lighting and refrigerator/freezers are the highest energy consuming household appliances in Swedish homes. 

Lighting and refrigerator/freezers are the highest energy consuming household appliances in Swedish homes.

Combating climate change internationally

The Kyoto Protocol calls for a reduction in greenhouse gas emissions to prevent “dangerous anthropogenic interference with the climate system.” Not all countries have ratified the treaty, though, among them the United States. Under the terms of the agreement, signatories pledge to reduce their greenhouse gas emissions 5 percent (compared with 1990) between 2008 and 2012.

The most controversial measure concerns emissions trading. The European Emissions Trading Scheme, launched in 2005, establishes a ceiling for carbon emissions in EU member states. Each state is then required to divide up and distribute emission credits at national level. In Sweden, the system primarily affects large companies in the industrial and energy sectors.

The Kyoto Protocol includes schemes called the Clean Development Mechanism and Joint Implementation that allow economies to meet their targets on greenhouse gas emissions by purchasing reductions elsewhere. Sweden is overseeing projects in China, Brazil, India and the Baltic that use Swedish technology to reduce carbon emissions. It is hoped that a new agreement will be finalized at the United Nations Climate Change Conference, Copenhagen, in November 2009. This would take effect once the Kyoto Protocol ends in 2012.

Useful links

www.energimyndigheten.se — The Swedish Energy Agency, responsible for energy policy
www.elforsk.se — Research and development center for the Swedish energy industry
www.energimarknadsinspektionen.se — Energy Markets Inspectorate, regulator for the electricity, natural gas and district heating markets
www.svenskenergi.se  Swedenergy, a non-profit organization representing companies involved in the production, distribution and trading of electricity in Sweden
www.naturvardsverket.se  The Swedish Environmental Protection Agency, responsible for Swedish environment policy
www.vr.se — The Swedish Research Council
www.energikunskap.se — Fact bank on energy developed by the Swedish Energy Agency (in Swedish)
www.energy.eu — Europe’s energy portal
www.iea.org — The International Energy Agency
www.ipcc.ch — The Intergovernmental Panel on Climate Change
www.managenergy.net — EC initiative aimed at local and regional energy management agencies

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