6. ENERGY TECHNOLOGY RESEARCH, DEVELOPMENT AND DEMONSTRATION

To strengthen and better co-ordinate international collaboration, the government established the Swedish strategy group for EU co-ordination (EU-Sam) and the Swedish strategy group for international R&I.

Lastly, the SEA has initiated a platform, “A Challenge from Sweden”, an innovation procurement competition for sustainable energy technology that is open to national and international participants. The platform aims to 1) facilitate needs-driven innovation, 2) strengthen public-private partnership, 3) accelerate transformative and disruptive change and 4) implement new sustainable business models.

Assessment

Sweden has a well-established policy on ETRDI and a long history of international collaboration in this field. Given the relatively close correlation between the net spending on energy RD&D and patent applications from 1995 to 2012, the stimulation of ETRDI is considered to have had a positive impact in the recent past. In addition, the significant level of private sector co-funding is an accomplishment.

In March 2017, the parliament adopted the ERIP, formed around five major challenges. ERIP is by far the main source of public funding for ETRDI. Compared to other IEA countries, Sweden is close to the median when it comes to public spending on energy research and innovation per GDP. The IEA commends the Swedish ETRDI policy, as it contributes to the country’s overarching climate and energy targets and creates economic opportunities and export potentials.

The IEA applauds Sweden’s innovation system approach, the dynamic character of the innovation process, and the stimulation of the collaboration between different actors and sectors (industry and knowledge institutes, but also consumers and local authorities). The IEA also supports the focus on aspects associated with technology development, such as behavioural issues, infrastructure, new business models and market considerations, which are necessary for implementation. This holistic innovation system approach requires a broad range of instruments as well as the right expertise. The SEA is able to deliver on both issues through the entire innovation process to create a positive impact. “A Challenge from Sweden” is a fine example of innovation procurement that also enhances international exposure.

The SEA, together with the MEE, has put a lot of effort into developing a systematic approach for prioritisation, implementation, monitoring and evaluation. From the overarching policy framework, visions and objectives around nine themes were derived, followed by the formulation of ETRDI programmes with clear targets to stimulate activities and produce tangible results, and a well-functioning monitoring and evaluation system.

Currently, over 60 multiyear ETRDI programmes are in operation and comprise more than 2 500 projects. The programmes vary from zero-emission transportation to a fossilfree steel industry to ocean energy (motivated by export potentials). It is a challenge to manage this broad variety and high number of programmes and projects, absorb the knowledge gained and manage a complex budget. The impact of ETRDI can be increased with more focus on the major challenges for Sweden. Near-term market opportunities (particularly for applied research and demonstration) merit attention.

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6. ENERGY TECHNOLOGY RESEARCH, DEVELOPMENT AND DEMONSTRATION

Strengthening the co-ordination of energy R&I with general R&I could further enhance these opportunities, which should be considered when preparing the bill for the new Energy Research and Innovation Programme and the budget for 2021-24.

The government has a clear vision of the importance of international collaboration on climate and energy RD&I. This is highlighted by the activities through the Nordic Energy Research Programme, the participation in 22 of the IEA TCPs, the active involvement in the EU SET Plan, MI, the CEM and bilateral collaboration with several countries. The aim is to build upon national programmes, to enhance them by working together with international partners and to gain knowledge of the development of certain innovation areas that could be of interest to Sweden. International collaboration is also needed to pave the way for Swedish innovations in a global market. The co-ordination and strengthening of the work within the European Union and in the international research context have been professionalised with the setting up of EU-Sam and the Swedish strategy group for international research and innovation.

History shows that innovations can fundamentally transform societies, and technology can develop much faster than anticipated (e.g. cost reductions in solar PV and offshore wind). This is thus further reason to assess periodically new international developments, the possible effects for Sweden, the progress with ETRDI programmes and, from a holistic innovation system perspective, what steps to take next. This could also mean adjusting energy or climate policy measures. Sweden should maintain support for the programme “A Challenge for Sweden”, which focuses on innovation, transformational change and new business models.

The energy and climate policy goals of 100% renewable electricity generation by 2040 and net zero-carbon emissions by 2045 are ambitious. To progress further towards achieving these objectives, ETRDI budgets will need to be increased significantly, for technologies with expected potentials as well as those closer to market. The government needs to evaluate whether the demand for certain innovations that are market-ready could be stimulated by other energy or climate policy measures, or would need to be funded by the European Union. For example, the regulation for biofuels in transport could stimulate private investment on RD&I, and possibly reduce the need for public funding. However, it could benefit from a European market for biofuels. With these kinds of analyses, the ERIP could focus on cross-cutting themes and systems transformation to create more added-value with public money. Examples are energy conversion and storage, the use of other energy carriers in the system, the integration of a circular economy and energy and transforming the industry. ETRDI budgets should reflect the political ambition for Sweden to become the first fossil fuel-free welfare nation. For that to happen, also the right expertise and skilled workforce are required.

Recommendations

The government of Sweden should:

Consider ways to enhance the support for the energy and climate objectives through ETRDI efforts in the upcoming bill for 2020. Focus energy ETRDI efforts on the major energy challenges.

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