4. ENERGY EFFICIENCY

construction-sector experts to learn about low-energy buildings and Sweden’s energy targets. Other training is offered for property developers, teachers and construction workers. The training programmes are set up together with NBHBP and stakeholders from business and public services.

Policies for energy efficiency in industry

Under the EED Article 8, large enterprises in all EU member countries must conduct energy audits every four years, starting from December 2015. This was established in Sweden through the 2014 law on Energy Auditing of Large Companies (2014:266). The law affects around 1 500 Swedish enterprises. The first audit should be done in the four-year period 2016-19. The SEA administers the process and is currently assessing results of the first round of audits (SEA, 2018b).

In 2018, the government introduced Energisteget (“the Energy Step”), a programme to support implementing energy efficiency measures. Large companies that have carried out energy audits in accordance with the EED requirements may apply for financial support to invest in energy efficiency measures. The total budget for the programme is SEK 125 million for the years 2018-20.

In 2010, the government introduced a fund to support energy audits also in small and medium-sized enterprises (SMEs). Companies may apply for support of up to 50% of the cost for the audit, at most SEK 50 000. The audit should include energy mapping, proposals for energy efficiency measures and an energy plan. The SEA also guides SMEs in performing energy audits and energy-saving measures. In 2015, the agency initiated a network project for SMEs to support them in introducing energy management principles and in sharing learning experiences and best practice.

Public procurement for energy efficiency

Public bodies at the local, regional and state levels can use public procurement practices to encourage the purchase of energy-efficient goods and services. Sweden has a long history of setting energy and environmental requirements for public procurement. The Swedish National Agency for Public Procurement has developed sustainability criteria for the procurement of products, buildings and services.

Assessment

Sweden is on track to meet its energy intensity targets

Although Sweden’s GDP has grown by 18% from 2008 to 2017, its energy consumption has remained almost flat. The country is on track to meet its target to reduce the energy intensity of the economy by at least 20% from 2008 to 2020. The 2030 target of a 50% lower energy intensity compared to 2005 is also within reach, although further improvements are required.

Energy efficiency targets should be ambitious, realistic, understandable and clearly communicated. As both the Swedish energy intensity targets are based on primary energy use, the closure of nuclear power plants contributes significantly to reaching them. Furthermore, energy intensity depends on the structure of the economy, and structural changes in energy-intensive industries can have a large impact on a country’s

64

IEA. All rights reserved.

4. ENERGY EFFICIENCY

performance. The government could therefore complement the adopted targets with a different metric to better capture improvements in energy efficiency in the final consumption. Furthermore, the energy efficiency targets should be aligned with Sweden’s climate targets and backed up with actions to ensure that energy efficiency effectively helps reduce emissions.

Taxing energy consumption and carbon emissions is a cost-effective way to provide price signals to energy consumers to save energy and steer the economy in a sustainable direction. Together with the EU-ETS, energy and CO2 taxation has stimulated companies, municipalities and individuals to invest in more sustainable energy solutions, which include energy efficiency. Sweden also uses its taxation to satisfy the requirements in EED Article 7. The government should regularly assess the contribution of taxation on energy efficiency improvements and ensure it is sufficient to incentivise energy efficiency further to fulfil the energy savings requirements for 2030.

Sectoral strategies should align with the intensity target

With the 2016 Energy Agreement adopted, which includes the 2030 target for energy intensity, Sweden now needs concrete action plans on how to reach the target. The SEA has begun the work to determine the energy efficiency pathways and strategies for individual end-use sectors. The work should clarify the potential for energy efficiency contributions from each of the five identified sectors, while bearing in mind cross-sectoral effects and overlap.

The IEA welcomes the ongoing work with sectoral strategies for energy efficiency and encourages the government to monitor the progress and ensure that the sector contributions can add up to achieving the 2030 target. Furthermore, the strategies need to be aligned with Sweden’s climate objectives. Many measures taken today are longterm ones and may have lock-in effects for greenhouse gas (GHG) emissions.

Buildings remain an important area for energy efficiency

Energy use in buildings remains significant in Sweden and the energy performance requirements for new buildings should be regularly reviewed. The variations in the energy consumption of different non-residential buildings can be substantial, which is not captured in the building code today. Despite some benefits of simplicity, placing all the non-residential buildings under one single building category in the energy performance requirements can lead to efficiency losses. The government should consider introducing additional categories to capture better the potential for cost-efficient measures.

In addition to the energy performance requirements, Sweden recognises the need for further incentives for renovations of the building stock. The recently established support for the renovation of residential buildings in areas with socio-economic challenges is a good step, but it is yet to deliver significant results. Improved energy efficiencies in buildings can also provide multiple benefits, e.g. in terms of better indoor air quality and comfort. Such benefits of energy efficiency measures, and the connection between renovation and energy efficiency, should be utilised further. As an example, the government could consider adapting its tax deduction policy to focus funding on renovations that also provide energy efficiency improvements.

The enforcement of building energy efficiency requirements is also an area that requires continuous attention. This is especially true where the state provides financial support.

65

ENERGY SYSTEM TRANSFORMATION

IEA. All rights reserved.