Energy in Sweden 2003 Fpreface
Total Page:16
File Type:pdf, Size:1020Kb
Energy in Sweden 2003 FPreface Publications can be ordered from the Swedish Energy Agency Publications Department: Box 310, SE-631 04 Eskilstuna Fax: +46 16-544 22 59 Telepone: +46 16 544 20 00 E-mail: [email protected] © Statens energimyndighet Print run: 1500 copies ET 22:2003 artnr 1572 Graphic design: Anna Lagerman/ETC Printing: Multitryck i Eskilstuna AB, 2004 Photos: Per Westergård Preface Conditions in the energy markets change rapidly, reflecting not only energy and environmental policy in Sweden, but also wider changes in the rest of the world. In recent years, Swedish energy and environmental policy has been in- creasingly concentrated on establishing or improving the long-term condi- tions for efficient energy markets. Restructuring of the Swedish electricity market, greater internationalisation and the effects of the energy system on the wider environment and on climate are important factors that influence the direction of energy policy and so also development of the energy markets. The line that was started by the 2002 Energy Policy Agreement, under the name of Working Together for a Reliable, Efficient and Environmentally Aware Energy Supply (Bill no. 2001/02:143), continues. The shift in taxation policy to encourage the move towards a sustainable energy system and re- duced environmental impact continues, as exemplified by the introduction of the green electricity certificate system on 1st May 2003. In 2002, the Government appointed a special negotiator to reach agree- ment with the nuclear power industry on the long-term phase-out of nuclear power production. One of the starting points for these negotiations is the ’German model’, under which each reactor is assigned a particular overall production quantity of energy, instead of a specific closure date. One of the more important tasks of the Swedish Energy Agency is to mo- nitor developments in the energy and environmental fields, and to provide information on the current energy situation in respect of aspects such as changes in the pattern of energy use and energy supply, energy prices, energy taxes and the environmental effects of the energy system. Energy in Sweden 2003, together with its statistics supplement, Energy in Sweden, Facts and figures 2003, is intended to provide decision-makers, journalists and the public with a single source of easily available information on conditions and developments in the energy sector. Eskilstuna, February 2003 Thomas Korsfeldt Klas Tennberg Director–General Head of Department The System Analysis Department Paul Westin Project leader 2 Contents I EDITORS: Anna Andersson (Energy balance), Göran Andersson (Energy balance, Coal), Johanna Andréasson (Residential and Service), Eva Centeno López (Electricity Market), Erik Filipsson (Taxes and Prices), Per Grunéus (Industry), Tobias Jakobsson (Energy gases), Anders Jönsson (Transport) Gunilla Karlsson (Energy policy, Environment), Therése Karlsson (International), Marcus Larsson (Biofuels and Oil), Mathias Normand (Taxes and Prices) Christian Sommer (Environmental problems), Paul Westin (District heating and district cooling). Contents Current policy areas 4 Sweden´s energy policy 4 1 Energy in the EU and international climate negotiations 6 Sweden´s energy balance 9 Total energy use 9 2 Total energy supply 11 Energy markets 13 The electricity market 13 Biofuels, district heating and district cooling 18 3 Oil, coal and the energy gas markets 20 Energy use 29 The residential and service sector etc. 29 Industry 31 4 Transport 33 An international perspective 35 Energy use in the EU 35 5 World energy sources and energy use 36 Taxes and prices 40 Energy taxation 40 6 Prices 43 The environmental situation 45 Local and regional environmental problems 45 Global environmental problems 47 7 International climate cooperation 48 Energy facts 51 Information on statistics and conversion factors 51 8 A little energy reference book 52 3 1Current policy areas Current policy areas The framework conditions of energy markets are determined largely by political and legal considerations. In Sweden, the aim of the political decisions is to influence development of energy use and energy pro- duction in a sustainable direction. The markets are affected primarily by national and EU decisions, although global agreements are beco- ming increasingly important. This chapter discusses a number of areas of current interest in the fields of energy, environmental policy and climate policy. Sweden´s energy policy production of electricity from renewable sources The 1997 energy policy agreement set out a and with minimum environmental impact. The strategy for continued restructuring of the coun- trading prices of the certificates will depend pri- try’s energy system. The energy policy pro- marily on the relationship between demand for gramme consisted of two parts: the short-term ’green’ electricity and the availability of such programme, which was concerned primarily electricity. The actual magnitude of this demand with replacing the loss in electricity production depends in turn on the quota obligation applied capacity resulting from the closure of Barse- to energy users. The overall objective is that the bäck, and the long-term programme which con- use of electricity from renewable sources should centrated on research, development, increase by 10 TWh/year between 2002 and demonstration and politically justified measures 2010. The quota-based production certificate intended to counter climate change. The short- system will make support for renewable electric- term programme was concluded in 2002, while ity production competitively neutral. On-shore- the long-term programme continues until 2004. wind power will continue to be subsidised during In June 2002, Parliament approved the Gov- a transition period, by means of an output sub- ernment’s proposal for a new energy policy sidy of 18 öre/kWh in 2003, reducing annually programme, intended among other points to re- until it is finally abolished in 2010.1 In addition, place the concluded short-term programme, the agreement includes a planning objective for and based on an agreement between the Social wind power, so that plans for siting 10 TWh/year Democrats, the Centre Party and the Left Party. of wind power production shall have been agreed The guidelines set out in the 1997 energy poli- by 2015. cy decision remain: the objective of the coun- The 2002 energy policy decision also in- try’s energy policy is to ensure, in both the cludes measures intended to improve the effi- short and long terms, a reliable supply of elec- ciency of energy use, such as those concerned tricity and other forms of energy on competi- with information and training, local and re- tive terms. The policy is intended to create the gional initiatives and technology procurement right conditions for efficient use and cost-effi- and market introduction of energy-efficient cient supply of energy in Sweden, with mini- technology. mum adverse effects on health, the In 2002, the Government appointed a spe- environment and climate, while at the same cial negotiator to reach agreement with the time supporting the move towards an ecologi- power industry on long-term phasing out of nu- cally sustainable society. clear power production. One of the starting Changes in the 2002 energy policy agree- points of these negotiations is the ’German ment are concerned primarily with the thrust of model’, under which each reactor is assigned a the guide measures intended to influence devel- particular overall production quantity of ener- opments in the shorter term. The agreement in- gy, instead of a specific closure date. corporates a longer-term element intended to In March 2003, the Government put forward restructure the energy system through encour- a Bill indicating that Parliament’s conditions for agement of electricity production from renew- closing Barsebäck 2 have now been fulfilled, able sources and of more efficient use of energy. apart from the effect on the country’s power bal- 1 The reduction for off-shore wind po- A new guide measure, in the form of trading in ance and on environment and the climate. The wer is set at a slower rate and the certificates of electricity production, has been Government therefore decided that closure of subsidy will be 12 öre in 2009. introduced in 2003 in order to encourage the Barsebäck 2 shall be included in the negotia- 4 Current policy areas1 tions with the nuclear power station operators excellent prospects for cost-efficient JI projects concerning continued phase-out of the remain- in Eastern Europe. The work of the Commis- ing reactors. However, the Government empha- sion has resulted in the opening of negotiations sises that particular attention should be paid in for bilateral JI agreements with Russia, Estonia the negotiations to the possibility of early clo- and Lithuania, and with the conclusion of ne- sure of Barsebäck 2. gotiations with Romania. The Agency is In September 2003, the Commission on En- preparing a test package of 3–4 small and ergy Technology and Development submitted medium-sized JI projects in the field of renew- its report2 on evaluation of the long-term ele- able energy and energy efficiency improve- ments of the 1997 energy policy agreement. ments in Eastern Europe. As far as CDM The report states that although the various re- projects are concerned, the Agency aims to put search, development and demonstration pro- together a geographically balanced portfolio of jects that have been carried out are both projects, concentrating of