The Energy Regulation and Markets Review - Stikeman Elliott

Sweden
A number of measures have also been undertaken in the building sector to
promote energy efficiency. For example, there have been programmes involving
investment support for the installation of solar heating systems and the conversion of
heating systems. Another measure is the introduction of an obligation for all owners of
buildings to undertake energy assessments for their buildings.
iii Technological developments
The Energy Agency provides support to Swedish energy research and innovation
projects. For the next five years the Agency proposes to give priority to five areas: fossil
fuel-dependent vehicles, renewable electricity within the power system, energy efficiency
within the building sector, increased use of bioenergy and energy efficiency within
Swedish industry. Support is given by way of grants to, inter alia, basic research projects,
development of new energy technology, business development and innovations.
VI
THE YEAR IN REVIEW
On 14 April 2010, the EU Commission took a decision to the effect that Svenska
Kraftnät, which owns and operates the national grid, must alter the way in which it
manages transmission limitations in the Swedish electricity network. This decision was
a consequence of the fact that the model in use until then (when the whole of Sweden
was one single bidding area) was considered to discriminate against foreign customers.
As a result of this, Svenska Kraftnät divided Sweden into four bidding areas with
effect from 1 November 2011:
a Luleå - the north (surplus of generation)
b Sundsvall - the mid-north (surplus of generation)
c Stockholm - the mid-south (shortage of generation)
d Malmo - the south (shortage of generation)
This division illustrates that there are imbalances in the Swedish network system due to
shortage of feed-in power and that transmission limitations (bottlenecks) exist in the
grid. It also indicates where it is necessary to increase generation in the country in order
to decrease the need for long-distance electricity transmission.
VII
CONCLUSIONS and OUTLOOK
The Swedish energy market is a relatively small market dominated by few market players
and is heavily dependent on hydro and nuclear power. The Swedish government decided
in 1980 that a phase-out of nuclear energy should be completed by 2010. In 1997
energy policy allowed 10 reactors to operate longer than envisaged by the 1980 phaseout
policy. On 17 June 2010, the Swedish parliament adopted a decision allowing the
replacement of the existing reactors with new nuclear reactors, starting from 1 January
2011, although construction will only be at existing sites and to replace the present 10
units. The abolition of the act banning construction of new nuclear reactors in Sweden
was a part of the government’s climate programme to reduce greenhouse gases. Another
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