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Energy Policies of IEA Countries Sweden

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Energy Policies of IEA Countries Sweden Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at http://www.iea.org/ termsandconditionsuseandcopyright/ Energy Policies of IEA Countries Sweden 2013 Review Energy Policies of IEA Countries Sweden Sweden has made progress in recent years towards a more secure, sustainable energy future. The Scandinavian nation already has an almost carbon-free electricity supply and has phased out oil use in residential and power sectors. It is increasingly integrated within the Nordic and Baltic electricity markets, and its joint renewable electricity certificate market with Norway offers a unique model for other countries. Now Sweden must take concrete steps to realise its vision of a fossil-fuel- independent vehicle fleet by 2030 and no net greenhouse-gas emissions by 2050. Although Sweden has decided to allow the replacement of its existing nuclear reactors, further emission reductions will come at a higher cost and require technology change. This means Sweden will need to carefully evaluate the most cost-effective pathways for its transition to a low-carbon economy. Sweden has a high energy-intensity level, which requires greater energy efficiency in industry, buildings, heat and transport. A decarbonisation vision should be mapped out for each industry sector. Starting with transport, Sweden must specify how it will wean its vehicle fleet from fossil fuels by 2030. Sweden’s industry lead in smart grids is an asset. Sweden should scale up investment in clean energy technologies. As all Nordic countries decarbonise, cost-effective regional solutions can control consumers’ costs. The large-scale deployment of renewable and energy technologies in a common Northern European energy market can drive decarbonisation without comprising competitiveness, security of supply and affordability. This review analyses the energy-policy challenges currently facing Sweden, and provides studies and recommendations for each sector. (61 2013 01 1P1) 978-92-64-19073-3 €75 Energy Policies of IEA Countries Sweden 2013 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2013 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom Please note that this publication United States is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are available online at also participates in http://www.iea.org/termsandconditionsuseandcopyright/ the work of the IEA. Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS .......................................................................... 9 Executive summary ...................................................................................................................... 9 Major achievements ..................................................................................................................10 Shaping progress ........................................................................................................................11 Key recommendations ...............................................................................................................15 PART I POLICY ANALYSIS .....................................................................................................17 2. THE FRAMEWORK: ENERGY POLICY AND CLIMATE CHANGE ................................................................19 Country overview .......................................................................................................................19 Supply and demand ...................................................................................................................20 Projections for 2020 and 2030 ...................................................................................................23 Institutions .................................................................................................................................24 CO2 emissions from fuel combustion .........................................................................................26 Key policies .................................................................................................................................28 Climate change policies..............................................................................................................31 Assessment ................................................................................................................................38 Recommendations .....................................................................................................................40 3. ENERGY EFFICIENCY ...............................................................................................................................41 Total final consumption .............................................................................................................41 Institutions .................................................................................................................................43 Sectoral policies and measures ..................................................................................................44 Assessment ................................................................................................................................49 Recommendations .....................................................................................................................53 PART II SECTOR ANALYSIS ...................................................................................................55 4. FOSSIL FUELS AND PEAT ........................................................................................................................57 Overview ....................................................................................................................................57 Oil ...............................................................................................................................................58 Natural gas .................................................................................................................................65 Coal ............................................................................................................................................72 Peat ............................................................................................................................................73 3 Table of contents Assessment ................................................................................................................................75 Recommendations .....................................................................................................................78 5. RENEWABLE ENERGY .............................................................................................................................79 Supply and demand ...................................................................................................................79 Institutions .................................................................................................................................82 Policies and measures ................................................................................................................82 Assessment ................................................................................................................................92 Recommendations .....................................................................................................................93 6. NUCLEAR ENERGY ..................................................................................................................................95
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