Energy Efficiency and Renewable Energy Sources in Sweden

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1 Energy Efficiency and Renewable Energy Sources in Sweden Swedish Energy Agency Yelena Varasteh Slovakia, April 2006

2 Total energy supply in Sweden in 2004 Total TWh The supply of crude oil and oil products has fallen by 40% since % of energy provided by renewable energy sources in 2004 The supply by biofuels has more than doubled in period from 1970 Fuel based thermal power 12.9 TWh Wind power Twh

3 Energy supply in Sweden excluding net electricity export

4 Electricity production TWh, 16 TWh more than 2003 Proportions: nuclear 50%, hydro 40% and less than 10% - fossil fueled, biofueled and wind power Combustion-based electricity production amounted to 12,9 TWh with more than 50% -biofuels, 22% - coal, 16% - oil and 4% - gas The electricity certificate system was introduced in 2003 with aim of increasing use of electricity from renewable energy sources by 10 TWh/year between 2002 and 2010

5 Fuel input for electricity production excluding nuclear fuel

6 The electricity certificate system Introduced in 2003, with the aim of increasing the use of electricity from renewable sources by 10 TWh/year between 2002 and During a transmission period the system will be complemented by targeted support for wind power production 12 öre/kwh for onshore, and 17 öre/kwh for offshore production which will succesively diminished. In 2004, users had to buy certificates corresponding to 8.1 % of their electricity use, it will have reached to 16.9 % in 2010, by which time the trading system should have resulted in about an extra 10 TWh/year of electricity production from renewable sources.

7 Quota obligation requirement in the electricity cerificate system,

8 District heating Total energy supply to the district heating in 2004 were app. 54 TWh. From RES 33TWh. 57% - to residential heating (apartment buildings and detached houses). 32% - to commercial premises. 11% - to industry.

9 Use of district heating,

10 Choice of fuel for the district heating 1980 over 90% of fuel input for district heating and CHP plants was in form of oil over 61% - from biofuel, waste and peat. The input from RES increased by 11% from 2003 as effects, of among others, the green electricity certificate system, inclusion peat as certificate-qualifying fuel in CHP plants.

11 Energy input for district heating

12 Use of biofuel for district heating,

13 European Climate Change Programme (ECCP) Emission trading the most important policy measure to reducing total emissions within EU Including also following directives: Promotion of Electricity produced from RES (2001/77/EC) Energy Performance in Buildings (2002/91/EC) Promotion of Alternative Motor Fuels (2003/30/EC)

14 The emission trading system in Sweden with over 700 Swedish plants About 38% of the country emissions are covered by the trading scheme. For the trading period the Swedish state has issued emission allowances to about 67.3 MtCO2. For 2005 allowances were allocated to 530 plants.

15 Swedish climate strategy Sweden s emissions over the period my not exceed 104% of the emissions in In the short term the national climate objective require reduction up to 96% of the 1990 emission levels. By 2050 total emission should be less than 4.5 tonnes of carbon dioxide-equivalents per year and per inhabitant. Sweden is a member of the World Bank Prototype Carbon Fund (PCF) with the share of USD10 million. Sweden is responsible for very small proportion of total global greenhouse gas emissions, and so international cooperation is absolutely vital in attempts to stabilise atmospheric green greenhouse gas concentrations.

16 International climate cooperation 190 million SEK is allocated for climate change policy initiatives since Swedish International Climate Investment Programme (SICLIP) The programme is expected to generate emission reductions of between 2-2,5 Mt CO2e before Developing of CDM and JI projects: Brazil 3 projects India 1 project Bilateral agreements with Romania and Estonia Purchasing agreement for a Romanian project Negotiations agreements with Bulgaria, Russia and Ukraine

17 Testing Ground Facility (TGF) The found, which was established within the framework of the Baltic Sea Region Energy Cooperation (BASREC, and is managed by Nordic Environment Finance Cooperation (NEFCO). The TGF is active in JI projects in countries in the Baltic Sea region, primarily Poland, Lithuania, Latvia, Estonia, and Russia. The Budget is currently 15 Million EUR for credit delivery during and is expected to double with the upcoming investment by private entities. Sweden has invested 4 million EUR in TGF.

18 TGF project portfolio Share of project types by number 17% 22% 11% 17% 22% Wind Power Landfill gas CHP Biomass Biogas Energy Efficiency 11%

19 Project portfolio by tons CO2e Share of project types by tons 8% 2% 23% 25% 22% Wind Power Landfill gas CHP Biomass Biogas Energy Efficiency 20%

20 Swedish JI projects under development Host country Project Title Project type Estonia Russia Viru-Nigula Tuulepark Murmansk District Heating Project Wind Energy, 24 MW Energy Efficiency Total Emission reductions (tco 2 e) 431,000 (50-50% shared with the TGF) 325,500 (50-50% shared with Sweden, STEM)

21 Energy Efficiency improvements The programme for energy efficiency improvements in energy-intensive industries (PFE) was started in January 2005 Qualifying companies can be exempted from the new electricity tax if they fulfill certain conditions: The introduction of a standardised energy management system and application of physical measures to improve the efficiency of electricity use. The electricity efficiency improvement measures taken as a result of the programme are expected to give more or less the same effect as an energy tax of 0.5 öre/kwh would have done.

22 Approved companies 131 companies were approved for participation in the programme, most of them: in the pulp and paper industry 47 companies In the wood products industry 28 companies In the chemical industry 19 companies. In total, they use about 30 TWh/year of electricity in their manufacturing processes. A total tax reduction for the companies will be of about SEK 150 million per year.

23 From 2004 to 2006 A new grant system Tax reduction for householders who upgrade to high-performance windows in existing detached houses, or who install a biofuelled boiler for heating in new detached houses. In addition, from 15th May 2005 until the end of December 2006[1], the owners of premises used for public activities can apply for grants for conversion or energy efficiency improvement measures in the premises. [1] Other dates apply for energy surveys and installations of solar cell systems.

24 Bioenergy in the Baltic Sea Region Bioenergy project within the framework of BASREC, the Final Report is available on the website Some Outcomes of the project: Manual for the improvement of competitiveness of biomass fuels in the Baltic Sea Region (book and CD- ROM) Development of standards to achieve market harmonisation in the bioenergy field together with the European standardisation organisation (CEN) Final report of R R Electricity and District heating emission baseline methodologies was submitted by ECON and is available at:

25 Technology procurement Technology procurement can be seen as a guide measure intended to initiate market changes and to encourage the spread of new, efficient technology in the form of new products, systems or processes. Technology procurement is a complete tendering process, with the aim of encouraging and accelerating the development of new technology. The winners are given assistance with the market introduction process, and are guaranteed a definite initial order quantity for the new product. Since the 1990s, 55 different technology procurement projects have been initiated and partly financed.

26 Information activities The target groups for information are broad, ranging from energy managers in industry, through such as building contractors and house-owners to those still at school, in the secondary stage and upwards. Local authority energy advisors constitute a unique network, financed by the Swedish Energy Agency, and available in all local authority districts throughout the country. They provide the general public, small companies and organisations with impartial advice, tailored where appropriate to local conditions.

27 Thank you