Energy Policies of IEA Countries: Sweden 2019 Review

ENERGY POLICIES OF SWEDEN 2019 REVIEW

Executive Summary

Sweden is leading the way towards a low-carbon economy, with the lowest share of fossil fuels in its primary energy supply among IEA member countries. The country's 2016 Energy Agreement sets ambitious long-term energy and climate targets. However, the transport sector, accounting for half of energy-related CO2 emissions, requires special attention. Policies supporting low-emission vehicles and biofuels are necessary, but their effectiveness must be closely monitored. Decarbonizing the economy at the lowest cost is essential, and Sweden's market-based approach to energy policy has often proven successful. Ensuring that the energy-only power market can deliver stable electricity supply amid higher shares of wind power and potential nuclear phase-out is a significant challenge.

Key Recommendations

1. Decarbonization: Implement smart policies and measures to decarbonize the economy efficiently.
2. Market Design: Develop a well-thought-through market design to ensure stable electricity supply.
3. Transport Sector: Push for new policies supporting low-emission vehicles and biofuels in the transport sector.
4. Security of Supply: Maintain security of supply during the energy transition, particularly in the electricity market.

Energy System Transformation

• Energy-Related CO2 Emissions: Addressing energy-related CO2 emissions through climate policies and transport emissions reduction.
• Electromobility: Promoting the adoption of electric vehicles.
• Long-Term Scenarios: Assessing the impact of different scenarios on the energy system.

Energy Efficiency

• Energy Consumption by Sector: Analyzing energy consumption across various sectors.
• Regulatory Framework: Evaluating existing regulations and frameworks.
• National Policies and Measures: Reviewing national policies and measures aimed at improving energy efficiency.

Heat and District Heating

• Supply and Demand: Assessing the current state of heat and district heating systems.
• DH Markets and Regulation: Examining market development and regulatory aspects.
• Market Development: Identifying opportunities for market growth and innovation.

Energy Technology Research, Development, and Demonstration

• Strategies and Programmes: Reviewing existing strategies and programs.
• Research Areas: Detailing specific research areas.
• Funding: Analyzing funding mechanisms.
• Monitoring and Evaluation: Evaluating the effectiveness of research and development efforts.
• International Collaboration: Exploring opportunities for international collaboration.

Overall, Sweden's journey towards a secure, affordable, and environmentally sustainable energy sector remains critical. Continuous monitoring and adaptation of policies will be necessary to achieve the ambitious targets set in the 2016 Energy Agreement.