Sweden

Swedish Energy Supply in TWh,
1970-2004

The Swedish energy sector has undergone substantial changes in the past three decades. During this time, the utilization of fossil fuels was radically reduced, from 80% of the total energy supply in 1970 to 37% today. Approximately one-third of the total energy supply in the country comes from renewable sources, mainly hydropower, biomass, and wind power. Biomass has attained a particular place in the Swedish energy system and accounts for 18% of the total energy supply or 36% of the final energy use in the country (Swedish Energy Agency 2006).

Solid biomass, peat and waste supplied 112 TWh of energy in 2005, compared with 48 TWh in 1980. Taxes and investment grants have played a decisive role in enhancing the competitiveness of bioenergy in Sweden. Fossil fuels have been taxed in the form of carbon dioxide taxes, SOx taxes, NOx taxes, and the general energy tax. Investment grants have also been provided for the establishment of bioenergy plants. Since energy and environmental taxes have distinguished between types of users and energy carriers, certain segments have been particularly encouraged. Thus biomass has found a proper entry in district heating and, in 2005, accounted for 66% of the total district heating consumed in Sweden.

One-third of Swedish single-family houses are still heated with electricity. This segment is now being targeted with increasing success. Getting biomass-based equipment installed is simpler today as technology providers now offer complete solutions to household users. In fact, a modern bioenergy system is the most cost-efficient alternative for heating single-family houses in Sweden today. Also, further development of the district heating system is still possible.

Forest industries are the largest users of bioenergy in Sweden, with pulp and paper accounting for 80% of the biomass used in the industrial sector. And it is in this sector that the largest potential for bioenergy production still exists as there is significant potential for energy surplus through better process integration within these industries.

Though Swedish policies have been quite successful in enhancing the use of biomass for heat production, the same cannot be said about the fuel mix in power generation and transportation. Only 10 TWh of electricity and 2% of the total amount of fuel used in the transport sector came from biomass in 2005. In the past, electricity prices were low and bioenergy could not compete with nuclear power and hydro power in electricity markets. However, present policies pay a premium to electricity produced from renewable sources and this is boosting electricity generation from biomass.

In the transportation sector, ethanol has been introduced in Sweden mixed with gasoline and FAME with biodiesel. Two factories are producing approximately 75 million gallons (285,000 m³) of ethanol for use as transportation fuel. Imports come from Brazil and other European countries.