Theme sheet Published: 2008-11-28
Secure and reliable energy supply
For many years, development of the energy sector has been restricted by a number of incompatible political demands.
– How can we manage to secure energy supply which increases Sweden’s competitiveness, and fulfil environmental requirements at the same time?
What does Confederation of Swedish Enterprise want?
The energy market in Sweden needs long-term, internationally competitive game rules. All forms of energy-carriers and different technologies are important for a functioning energy system and an efficient energy market. The Swedish energy market should be open to a variety of actors and technologies, but firstly, permission should be given to all forms of energy. As long as environmental and safety requirements are met, the market itself will decide where investments are being made. This way, innovations and technological renewal are encouraged. Further, regulation of the energy market must be developed. Awareness must increase among energy consumers.
What is the situation today?
In order to increase the number of successful companies and create welfare, reliable supply of energy at competitive prices is a prerequisite. Sweden is highly dependent on electricity – at home and in the workplace; we want lighting, heating and technical apparatus that functions without disruption. A foundation of hydropower and nuclear power gives us clean and secure electricity production which is favourable for the global climate. Despite this, and the fact that a public majority are in favour of nuclear power, a phase-out is under way.
Sweden is currently dependent on imported electricity. Despite constant development of low energy technology, the large demand for energy will remain. In Sweden’s basic industries, energy – above all electricity – is often an important raw material, and constitutes a large proportion of the total cost of the product. The competitiveness of companies is therefore highly dependent on the price on energy. Even the smallest rise in electricity price can have severe impact on production costs.
International development is crucial, and Sweden’s energy supply cannot be judged in isolation. An effectively functioning market must have clear, unvarying regulations, which ensure that market players act under equal conditions. Increasing electricity consumption and new flows of energy on the electricity market cause increasing demands on transmission capacity. Joint solutions among the Nordic countries are needed in order to obtain more effective capacity increase at lower cost. Sweden is well positioned to increase its electricity production. In order for new investments and reinvestments in electrical power production to take place, today’s uncertainty and lack of clarity must be remedied.
What is required?
Secure the energy supply by:
- Creating an internationally harmonised and long-term framework for Swedish power production.
- Keeping the door open for all forms of energy production, as long as environmental and safety requirements are met, with specific demands for:
- Swedish nuclear plants to be run and developed for as long as they are economic viable.
- Political approval of infrastructure investments in natural gas.
- Further development of the Nordic electricity market.
- In order to create internationally competitive conditions for Swedish industries, a global system for trade in emission rights is a necessity.
- Abolish carbon dioxide tax on operations covered by the trade in emission rights.
- Make inspection of all monopoly activities – that is to say the infrastructure for electricity, heating and gas – as efficient as possible.
