Sweden Energy efficiency report
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1 Sweden Energy efficiency report Objectives: o 41 TWh of end use energy savings in 216 o 2 reduction in total energy intensity by 22 Overview - (%/year) Primary intensity (EU=1)¹ % + CO 2 intensity (EU=1) % ++ CO 2 emissions per capita (in tco 2/cap) % + Power generation - (%/year) Efficiency of thermal power plants (in %) % ++ Rate of electricity T&D losses (in %) % - CO 2 emissions per kwh generated (in gco2/kwh) Industry - (%/year) Energy intensity (EU=1) % ++ Share of industrial CHP in industrial consumption (in %) % + Unit consumption of steel (in toe/t) % - * and - for steel ++ Among the best performing countries + Above the EU average 1 Below the EU average 1 Among the worst performing countries Latest update: March The European Union, as the best performing region, is used as the benchmark.
2 1. Overview 1.1. Policies: 2 reduction in total energy intensity by 22 In June Sweden adopted its second National Energy Efficiency Action Plan (NEEAP), updating the first one () that had set an energy savings target of 41 TWh (3.5 Mtoe) in 216 in transport, buildings and small industries. The second NEEAP sets a total energy intensity reduction target of 2 percent for 22 compared with. It is estimated that this could lead to total savings of between TWh ( Mtoe) in 22. In addition, the Government has set the objective of reducing the energy use per square meter in buildings (dwellings and public/commercial premises) by 2 percent by 22 and by 5 percent by 25 compared with. In the framework of the Climate Plan, the Government plans to double the funds earmarked annually for energy efficiency measures to 27m/year (US$34m/year) between and Energy consumption trends: high energy consumption per capita Swedish total energy consumption per capita is relatively high, and in stood at 5.1 toe per capita, ie 55 percent above the EU average. In general, total energy consumption has been decreasing since, with a noticeable drop in (9 percent) due to the global economic downturn and again in (5 percent). However, in consumption rebounded rapidly. Total electricity sources (e.g. nuclear, hydro and wind energy, etc.) accounted for 43 percent of the country s energy consumption in. That share has decreased slightly since (52 percent), while the share of biomass has grown steadily, from 12 percent in to 23 percent in. Fossil fuels make a stable contribution towards the fulfillment of Sweden s energy needs: oil with 26 percent of overall consumption, coal with 4 percent and natural gas with 2 percent. The remainder corresponds to heat. Figure 1: Total consumption trends by sector 6 5 Other Industry Power generation 4 Mtoe The share of industry, including non-energy uses, in total energy consumption decreased rapidly between and, and stood at 28 percent in. The share of the power sector increased rapidly until and has remained stable at around 11 percent since then. Sweden Country reports 2
3 The country s electricity consumption per capita is among the world s highest at 13 7 kwh per year, and is 2.5 times higher than the EU average. From to electricity consumption decreased slowly (.4 percent/year), with major drops in and (around 4 percent each year). Electricity accounts for 32 percent of final energy consumption, which is the same level as in. The fall in electricity consumption was linked to the 1 percent drop in industrial electricity consumption, whereas the drop was driven by the residential sector (minus 8 percent) following a mild winter. Industry represents around 45 percent of the country s electricity consumption. Figure 2: Electricity consumption trends by sector TWh Industry Others 1.3. Energy efficiency trends: high energy intensity but reductions achieved Total energy consumption per unit of GDP (total energy intensity), measured at purchasing power parity, is 25 percent higher than the EU average. However, total energy intensity decreased at a slightly faster pace (1.8 percent/year) than the EU average (1.6 percent/year) between and. This intensity decrease has been relatively regular since. Figure 3: Energy intensity trends. %/year.5% % % Total energy intensity Power generation Industry Other sectors : buildings, transport and agriculture Sweden Country reports 3
4 2. Power generation: high efficiency in power generation thanks to hydropower The global efficiency of the power sector is high, at 48 percent, thanks to the large contribution of hydropower that represented 44 percent of the electricity generated in. It is 34 percentage points above the European average. On the contrary, the efficiency of thermal power plants is 7 percentage points below European average due to the high share of steam power plants (biomass and waste, and oil). Figure 4: Efficiency of power generation and thermal power plants Figure 5: Thermal electricity capacity, by technology % 2 1 Total power generation Thermal power plants GW 1 9 Steam Gas turbines Combined cycles The rate of T&D losses in the Swedish electricity grid is 7 percent, which is.5 percent above the EU average. In general, it has been decreasing since. 9 Figure 6: Electric T&D losses 8 % Sweden Country reports 4
5 3. Industry 3.1. Policies: tax exemption and subsidies for energy audits An energy tax on the electricity used in the manufacturing industry, agriculture, forestry and fisheries was introduced on 1 July. Industries participating in a five-year program to improve energy efficiency are exempt from this tax for the electricity they use in industrial processes. Since December, energy audits in energy-intensive companies (consumption >5 MWh/year) are subsidized. The scheme covers up to 5 percent of the costs with a maximum of 3, million Swedish krona (3,9 million US dollars) Energy consumption trends: large share of paper in industrial energy consumption Industrial energy consumption increased slightly between and (+1 percent/year). Since then, it has decreased by 2 percent/year, on average, with a 1 percent drop in. Although industrial consumption rebounded in it has not yet returned to its pre-economic crisis level. Figure 7: Trends in industrial energy consumption Mtoe Electricity and biomass are the largest energy sources for industry, with respective market shares of 39 percent and 37 percent of industrial energy consumption. The share of electricity has been stable since while biomass gained 6 percentage points over the period. Coal and oil account for 9 percent each of industrial consumption, while natural gas and heat account for just 3 percent each. Sweden Country reports 5
6 The share of energy-intensive industries (steel, chemical, paper and non-metallic minerals) in industrial energy consumption is large (74 percent in ). The paper industry is the largest consuming sector, with 5 percent of overall consumption. The steel industry accounts for 13 percent of the sector s consumption, while the nonmetallic minerals and chemicals sectors have much smaller market shares (5 percent and 3 percent, respectively). Figure 8: Energy consumption of industry, by source Figure 9: Energy consumption of industry, by branch Biomass Heat Electricity Gas Oil Coal/Lignite Other Paper Non metallic minerals Chemical Steel Energy intensity trends: large reduction in industry Between and, the energy consumption per unit of industrial value added decreased at the rapid pace of 2.2 percent/year. The largest drop was seen in the chemical sector, since energy consumption per unit of value added decreased sharply (by 4.6 percent/year). In the paper industry, ie the largest energy consuming sector, the energy required per ton decreased by.6 percent/year. The energy used per ton of steel decreased by.4 percent/year between and, whereas the energy consumption per ton of cement increased by.5 percent/year. Figure 1: Trends in the energy intensity of industrial branches * ** 1% %/year 2% 3% 4% 5% Total* Steel Chemical Cement Paper *Including construction and mining; ** since for chemical industry, Odyssee Sweden Country reports 6
7 The share of combined heat and power generation in Sweden s industrial consumption has increased rapidly over the last decade, and in particular since, reaching 11 percent in compared with 7 percent in. However, it is lower than the EU average (19 percent). Figure 21: Share of industrial CHP in industrial consumption 14% 12% 1 8% 6% 4% 2% The energy intensity of the manufacturing industry (ie excluding mining and construction) decreased by 2.2 percent/year between and. That trend was largely supported by changes in the value added structure, since energy efficiency gains in industry accounted for just.8 percent/year. Figure 3: Trends in energy intensity of manufacturing and structural effect..5% 1. %/year 1.5% % Real variation Change at constant structure Structural effect, Odyssee Sweden Country reports 7
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