7. ELECTRICITY
In contrast, in the south of the country wind power is facing low public acceptance and resistance within the administrations (out of environmental and military concerns). The resistance in more densely populated areas could be overcome by designating zones of national interest for wind power (the same could also be applied to hydropower in some cases), a task the SEA is already doing. The authorities could also preselect offshore locations and confirm the suitability of a site, but leave a detailed technical project open to investors. They should also engage with local stakeholders early and frequently. The resistance of different administrative authorities could be addressed by channelling the application process to one designated authority in charge of co-ordinating the licensing procedure within the whole administration.
Hydropower is by far the most important renewable electricity source, but it is sometimes neglected in the energy debate. This is undeserved, given its importance as a deployable carbon-free electricity source with a seasonal storage capacity of about 33 TWh. The remaining potential for large hydropower is about 35 TWh, but there is a political consensus not to harness the last large wild rivers. Although the property tax for hydropower will successively be brought to a level that is even with other technologies, there are no signals for future investments in hydropower, given its high capital costs and participation at grid costs. The government should monitor the competitiveness of existing hydropower and ensure its policies and measures do not discourage maintaining the generation of this dispatchable low-carbon source of electricity.
Recommendations
The government of Sweden should:
Analyse the long-term impact of having a 100% renewable electricity generation in 2040 on the generation adequacy, system resilience and cost-effectiveness of the electricity supply.
Clarify how to reach the national target of 100% renewable electricity generation in a Nordic energy-only electricity market.
Prepare and consider several scenarios for how to achieve fossil-free electricity supply and focus both on production (MWh) and capacity (MW) to cover peak demand.
Explore future solutions that ensure a sufficient level of flexibility, and capacity for ancillary and balancing services for the system:
>do so in the regional electricity market context
>clarify whether the strategic reserve will be continued beyond 2025.
Take measures to ensure the transmission system will be able to cope with the future challenges: reinforce and expand transmission capacity, in particular north-south lines and wind power connections (including offshore) and take action to reduce the lead times of permitting.
Analyse and introduce measures to utilise smart grid solutions, for example for the purpose of load shifting or limiting peak demand in winter.
Decide on a fair closing mechanism for the certificate system once the 2030 target has been met and communicate this decision as soon as possible.
115
ENERGY SECURITY
IEA. All rights reserved.
7. ELECTRICITY
Avoid implementing multiple incentive systems for the same technology.
Consider addressing long-term capacity concerns by increasing the dispatchable renewable capacity, e.g. at existing hydropower sites or by pumped storage.
Ease planning procedures for wind power, especially in southern Sweden and offshore, and consider other instruments that help optimise the location of new wind power with respect to grid congestion.
References
IEA (International Energy Agency) (2019 forthcoming) World Energy Balances 2019 preliminary edition (database), OECD/IEA, Paris, www.iea.org/statistics/.
IEA (2019b forthcoming), Electricity Information 2019 preliminary edition (database), OECD/IEA, Paris, www.iea.org/statistics/.
IEA (2018a), World Energy Balances 2018 (database), OECD/IEA, Paris, www.iea.org/statistics/.
IEA (2018b), Monthly Electricity Statistics: June, www.iea.org/statistics/.
IEA (2018c), Energy Prices and Taxes, First Quarter 2018, OECD/IEA, Paris, www.iea.org/statistics/.
IEA (2017), Energy Policies of IEA Countries – Norway 2017 Review, OECD/IEA, Paris, www.iea.org/countries/membercountries/norway/.
Nord Pool (2018), Historical Market Data – Elspot Prices, www.nordpoolspot.com/historical- market-data/.
SEA (Swedish Energy Agency) (2018), Detaljerade Uppgifter om Elcertifikatsystemet 2003-2017 Avseende Kvotplikt och Tilldelning av Elcertifikat i Sverige [Detailed Information on the Electricity Certificate System Regarding Quota Obligation and Certificate Allocation in Sweden], SEA, Eskilstuna, www.energimyndigheten.se/fornybart/elcertifikatsystemet/marknadsstatistik/.
SEA (2016), Scenarier över Sveriges Energisystem 2016 [Scenarios over Sweden’s Energy System 2016], SEA, Eskilstuna https://energimyndigheten.a- w2m.se/Home.mvc?ResourceId=5636.
SEMI (Swedish Energy Markets Inspectorate) (2018), The Swedish Electricity and Natural Gas Market 2017, Ei R2018:11, SEMI, Eskilstuna, www.ei.se/PageFiles/313846/Ei_R2018_11.pdf.
Statnett (2017), Nordic Grid Development Plan 2017, Statnett, Oslo, www.statnett.no/globalassets/om-statnett/nyheter-og-pressemeldinger/nyhetsarkiv- 2017/nordic-grid-deleopment-plan-2017.pdf.
Svenska kraftnät (2018a), Data Hub, Svenska kraftnät, Sundbyberg, www.svk.se/en/stakeholder-portal/Electricity-market/data-hub/.
Svenska kraftnät (2018b), Kraftbalansen på den Svenska Elmarknaden [Power balance on the Swedish Electricity Market], Rapport 2018, Svenska kraftnät, Sundbyberg,www.svk.se/siteassets/om-oss/rapporter/2018/kraftbalansen-pa-den-svenska- elmarknaden-rapport-2018.pdf
SWEA (Swedish Wind Energy Association) (2018), Statistics and Forecasts for the Wind Power Market, Q1 2018, SWEA, Stockholm, https://svenskvindenergi.org/wp- content/uploads/2018/04/Statistics-and-forecast-Svensk-Vindenergi-20180420.pdf.
116
IEA. All rights reserved.