2. GENERAL ENERGY POLICY

subsector, at 42% of the total industrial consumption in 2017. Over the last two decades, the industrial energy use has decreased from nearly 16 Mtoe to around 13 Mtoe. This is mainly due to structural changes within some industrial branches, e.g. a switch from mechanical pulp production to chemical pulp, and to more energy-efficient manufacture processes. In recent years, industrial energy use has been rather stable.

In the residential and commercial sectors, electricity accounts for more than half of the total consumption, not least because of the use of heat pumps and electric heating in buildings. DH is the other main source for heat and in residential energy consumption it is among the highest of all IEA members. The share of natural gas in the residential sector is, however, the second-lowest of the IEA members after Norway.

As in most countries, the transport sector stands out with its high dependence on oil products. In 2017, diesel fuel accounted for 50% of the energy consumption in road transport and gasoline for another 31%. However, in recent years, biofuels have increased rapidly in the transport sector, and Sweden has the highest share of renewable transport fuels of the IEA members. Hydrogenated vegetable oil, a type of biodiesel, accounts for the largest share of biofuels in the Swedish transport sector.

Main institutions

The Ministry of the Environment and Energy (MEE) is responsible for energy policy. Within the Ministry, this task has been delegated to a relatively small (25 people) Division for Energy, as most policy implementation is delegated to governmental agencies.

The Division for Climate in the Ministry is responsible for Sweden’s participation in global climate change negotiations and the European Union’s work on fulfilling its commitments under the Kyoto Protocol. In addition, this Division is responsible for emissions trading, project-based mechanisms and other climate policy instruments, as well as air-quality issues. The Division for Chemicals works on issues that relate to the environment and health, and to products and their lifecycles. This includes nuclear safety, radiation protection and the management of radioactive waste. The Ministry also co-ordinates and governs the national work on the environmental objectives system.

The Swedish Energy Agency (SEA), under the MEE, is a government agency in charge of implementing most of the energy policy. It is responsible for the energy projections and forecasts, provides energy statistics and policy analysis, administers the electricity certificate system, implements the sustainability criteria for biofuels, etc. It also oversees the implementation of energy efficiency measures and of publicly funded energy research, development and demonstration.

The Swedish Energy Markets Inspectorate is the national regulator for the electricity, natural gas and DH markets. It works to improve the functioning and efficiency of these markets.

The Swedish National Grid (Svenska kraftnät) is the transmission system operator. It owns and operates the national high-voltage electricity grid and is responsible for the electricity system’s short-term balance.

The Swedish Competition Authority works to safeguard and increase competition in Sweden. In addition to applying the Competition Act, it proposes changes to rules and

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ENERGY INSIGHTS

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