Harry Kretchmer writes on the WEForum website about the progress that Sweden has made in its energy transition and that the country now tops the WEF Energy Transitions Index. How is your country doing?
Transforming homes into power stations – how Sweden is disrupting energy production
- 54% of Sweden’s power comes from renewables and this energy is increasingly local.
- Smart grids are switching Swedish homes from energy consumers to power-making ‘prosumers.’
- Local ‘district heating’ plants use excess heat to warm the majority of Swedish homes.
- Sweden tops the World Economic Forum’s Energy Transitions Index
By 2030, almost a third of all the energy consumed in the European Union must come from renewable sources, according to binding targets agreed in 2018. Sweden is helping lead the way.
As well as targeting 100% renewable electricity production by 2040, the country is transforming homes into highly efficient ‘prosumers’ – buildings which both produce and consume the vast majority of their own energy.
Meanwhile local ‘district heating’ plants are using excess heat to produce over 75% of the warmth that Swedish households need. The country also manages to combine the world’s highest carbon taxes with relatively cheap energy prices.
These are all reasons why Sweden tops the Forum’s Energy Transition Index – providing environmental leadership at a time when a Great Reset has never been more needed. Here’s how Sweden is building up local solutions in its energy revolution.
54% of Sweden’s power comes from renewables, and is helped by its geography. With plenty of moving water and 63% forest cover, it’s no surprise the two largest renewable power sources are hydropower and biomass. And that biomass is helping support a local energy boom.
Heating is a key use of energy in a cold country like Sweden. In recent decades, as fuel oil taxes have increased, the country’s power companies have turned to renewables, like biomass, to fuel local ‘district heating’ plants.
Moving to clean energy is key to combating climate change, yet in the past five years, the energy transition has stagnated.
Energy consumption and production contribute to two-thirds of global emissions, and 81% of the global energy system is still based on fossil fuels, the same percentage as 30 years ago. Plus, improvements in the energy intensity of the global economy (the amount of energy used per unit of economic activity) are slowing. In 2018 energy intensity improved by 1.2%, the slowest rate since 2010.
Effective policies, private-sector action and public-private cooperation are needed to create a more inclusive, sustainable, affordable and secure global energy system.
Benchmarking progress is essential to a successful transition. The World Economic Forum’s Energy Transition Index, which ranks 115 economies on how well they balance energy security and access with environmental sustainability and affordability, shows that the biggest challenge facing energy transition is the lack of readiness among the world’s largest emitters, including US, China, India and Russia. The 10 countries that score the highest in terms of readiness account for only 2.6% of global annual emissions.
To future-proof the global energy system, the Forum’s Shaping the Future of Energy and Materials Platform is working on initiatives including, Systemic Efficiency, Innovation and Clean Energy and the Global Battery Alliance to encourage and enable innovative energy investments, technologies and solutions.
Additionally, the Mission Possible Platform (MPP) is working to assemble public and private partners to further the industry transition to set heavy industry and mobility sectors on the pathway towards net-zero emissions. MPP is an initiative created by the World Economic Forum and the Energy Transitions Commission.
In Sweden these trace their origins back to 1948, when a power station’s excess heat was first used to heat nearby buildings: steam is forced along a network of pipes to wherever it’s needed. Today, there are around 500 district heating systems across the country, from major cities to small villages, providing heat to homes and businesses.
District heating used to be fuelled mainly from the by-products of power plants, waste-to-energy plants and industrial processes. These days, however, Sweden is bringing more renewable sources into the mix. And as a result of competition, this localised form of power is now the country’s home-heating market leader.
But Sweden doesn’t stop at village-level heating solutions. Its new breed of energy-generation takes hyper-local to the next level.
48 family apartments spread across 3 buildings have been given photovoltaic solar panels, thermal energy storage and heat pump systems. A micro energy grid connects it all, and helps charge electric cars overnight.
The result is a cluster of ‘prosumer’ buildings, producing rather than consuming enough power for 77% of residents’ needs. With high levels of smart meter usage, it’s a model that looks set to spread across Sweden.
A recent development by E.ON in Hyllie, a district on the outskirts of Malmö, southern Sweden, has scaled up the smart grid principle. Energy generation comes from local wind, solar, biomass and waste sources.
Smart grids then balance the power, react to the weather, deploying extra power when it’s colder or putting excess into battery storage when it’s warm. The system is not only more efficient, but bills have fallen.
Smart energy developments like those in Hyllie, Ludivika, and renewable-driven district heating, offer a radical alternative to the centralized energy systems many countries rely on today.
The EU’s leaders have a challenge: how to generate 32% of energy from renewables by 2030. Sweden offers a vision of how technology and local solutions can turn a goal into a reality.