Proceedings World Bioenergy 2010

The black curve is what actually has been registered, also
figures from the Swedish Energy Agency. It is obvious
that the ambitions are low compared to what is possible
and that it is similar for other countries.
3. REASONS FOR DEVELOPMENT IN SWEDEN
I would like to briefly give a background of the reasons
why this fairly good development has taken place in
Sweden. I would also like to point out why I believe a
similar development is possible and profitable in almost
every country.
Reasons for a good development I Sweden:
3.1 No domestic fossil energy sources
In the 1970-ties Sweden like most countries had more
than 75 % of oil in the energy mix and also some
additional percentage of coal. When the first oil crises hit
the market in 1973, it became a wake up call for Swedish
politicians. It became obvious that it was not clever to be
so dependent on an imported energy source. Especially
since price could change quickly, create unpredictable
costs and ruin Swedish economy. Governmental research
and investment money was at this time directed towards
domestic energy production like nuclear power and
renewables. At the same time it was obvious that oil and
coal created environmental problems like spreading of
heavy metals and acidification. Energy tax and sulphur
fees were introduced on oil due to environmental reasons
and to encourage use of domestic energy sources.
3.2 No industry propagating for oil or coal
One very important factor has been that there is no
industry defending the fossil fuel position on the market.
The Swedish industry has always focused on keeping a
low electricity price, to be able to compete better on a
global market. The Swedish government has had a
similar view and increased energy taxes on households
but kept taxes on an international level towards the
industry.
3.3 Efficient forest industry sector
The Swedish forest industry sector consists of a leading
pulp and paper industry as well as a large saw mill
industry. The sector is very productive and consists also
of a lot of different supply and manufacturing companies
able to develop and manufacture forest harvesting
equipment and equipment to collect and chip forest
residues for energy. You are able to meet many of these
companies at the exhibition here at World Bioenergy.
The industry continuously has invested in increased
bioenergy use and production. Investments were also
enhanced by the introduction of the renewable electricity
certificates in 2003 which doubles the price for
renewable electricity producers. As an example of the
development the pulp industry Wärö owned by Södra
becomes the worlds first fossil free pulp industry in the
beginning of this year. Other parts of the industry invest
in production of biofuels for transport, which you are
able to hear from in session D2.
3.4 A common view of a free market and market
conditions.
Finally, the most important factor has been the
politicians’ ability to create a market situation that gives
companies a predictable future to invest in market
opportunities they believe in. The Swedish policy has
mainly been decided with the polluter pays principle in
mind. We have sulphur fees, NOX-fees and from 1991
also carbon dioxide tax. Taxing emissions is a
predictable, logical, environmentally friendly system that
companies understand. Sweden as a small country has
always been dependent on international trade, and
therefore it has come quite natural to develop bioenergy
during free market conditions. The polluter pays principle
does not give any particular advantage to any type of
solution. The solutions can be energy efficiency, solar,
hydro, bioenergy or something else. The most profitable
solutions are chosen.
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