Challenging the Path Dependence of Dominant Energy Systems
Edited by William M. Lafferty and Audun Ruud
Chapter 8: Sweden: Greening the Power Market in a Context of Liberalization and Nuclear Ambivalence
Yong Chen and Francis X. Johnson* INTRODUCTION Sweden has earned a reputation as an environmentally progressive nation, both internationally and in its domestic policies and institutions. Consequently, in analyses of renewable energy policy such as the present initiative, one expects to ﬁnd a strong commitment to renewable energy and energy eﬃciency. At the same time, Sweden has also created a highly successful industrial model by pursuing certain key export sectors, some of which are quite energy-intensive, such as machinery, chemicals and steel. These export-oriented industries have continued to play an important role in the Swedish economy, and have helped to balance a dependence on agricultural and consumer goods imports. As a small, open economy, Sweden has had to use its resource base eﬃciently and strategically. On 21 March 2002, the Swedish government presented an Energy Policy Bill (Regeringens Proposition 2002). An absolute target for the promotion of electricity from renewable energy sources was chosen because the ﬂuctuations in water availability for hydropower made the relative (percentage) targets set in the RES-E Directive much higher than if a normalized climatic year had been used as the basis. Based on forecasts of electricity consumption in 2010, adding 10 TWh on top of the 2002 production levels, the government expected that 52 per cent of total electricity consumption in 2010 would be sourced from renewable sources. This is below the indicative target of 60 per cent originally assigned to Sweden under the RES-E Directive. Negotiations were initiated, and Sweden’s indicative target...
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