14 March 2022
Swedish government announces SEK 14 billion energy action package
Today, Sweden’s Minister of Finance Mikael Damberg announced a package of measures to assist households cope with the effects of the Ukrainian War. The action package consists of two tracks. In the short term, there will be a temporary reduction in tax on petrol and diesel, additional funds for climate bonus systems, extended electricity price compensation in southern and central Sweden and a temporary increase in housing allowance for families with children. In the longer term, a reformed travel deduction is proposed with extended benefits for rural areas and pauses to the biofuels reduction obligation and GDP indexation of fuel taxes.
The tax on diesel and petrol is proposed to be reduced by SEK 1.30 per litre between 1 June and 31 October, which is estimated to cost the Government SEK 3.7 billion. And extra compensation will be provided for private individuals of SEK 1,000 per car, with an extra SEK 500 for residents in so-called support areas at a total cost of approximately SEK 4 billion.
The situation is the consequence of Russia's actions in Ukraine, the Minister emphasised at a press conference. “We need to become independent of oil and gas from Russia. Anyone who can afford to change should do so now.”
Sweden’s Industrial strategy of the future
On Thursday, the Swedish Government also updated its plans for a green and digital transition. It is the stated aim that through the transition they can strengthen competitiveness and create jobs with good conditions in Sweden. With the Industry of the Future strategy, the government identifies four overarching trends in global development that affect the industry and which form the basis for the continued work; new major EU initiatives, an increasingly complex and interconnected world, the slowdown in globalisation and the post-Covid-19 reconstruction.
Nordics and Canada announce NOK 69 million for circular research
Norway, Finland, Sweden, Germany and Canada together announce NOK 69 million for research on the use of biomass resources from the forest. Through the co-operation initiative "Bioeconomy in the North" (BIN), the five countries want to develop a deeper co-operation on and increase the quality of research on bioeconomics. They call for research projects that will develop or improve biorefining processes and material that involves wood-based biomass in a circular bioeconomy and wood products in a circular bioeconomy, for example for building structures.
Swedish municipalities stop 78% of all wind turbines applications
Never before has so much wind power been stopped as last year, according to a report read by Swedish Television (SVT). The report shows that in 2021 the Swedish municipalities stopped 78% (32 of 42) of all wind turbine applications on land - a dramatic increase from the year before when 38% were stopped. The wind power industry believes that the veto threatens electrification, green industry and the entire climate change agenda. “We see that the municipalities are stopping more and more wind power, at a time when Swedish industry and the whole of Europe need more electricity”, said Tomas Hallberg, Permit Expert at Swedish Wind Energy, who commissioned the report. “Most vetoes are about the municipalities perceiving concerns from the local population - it can be concerns about the view, noise, flashing lights or that wildlife and nature should be affected. The highest proportion of wind turbines is stopped in southern Sweden, where the need for more electricity is greatest.”
Swedish grid infrastructure improvement faces huge bill
Sweden is facing the largest expansion of the electricity grid since the 1970s, when the heating of homes and premises was changed from oil to electricity. A number of sources quote a new report suggesting the needed infrastructure improvements for the national grid are estimated at SEK 670 billion. To be able to achieve the goal of a fossil-free Sweden, Swedish electricity consumption, which today is 140 TWh per year, will need to more than double to 310 Twh per year, which according to Sweco's report, will cost SEK 670 billion. “A lot is about maintaining and strengthening the infrastructure that already exists. It is in its' twilight years and needs to be replaced to ensure its effectiveness,” said Johan Lindehag CEO of Ellevio. The need is also driven by the ongoing electrification in society and major changes in industries such as transport and industry, as well as several million new electric cars that require a greatly increased supply of electricity.
Record breaking investments in Swedish Cleantech
Investments in Nordic cleantech companies reached a new peak last year, and Swedish companies continue to attract the most capital. The pressure on energy prices has the potential to give increased impetus to investments this year, believes Magnus Agerström, CEO of Cleantech Scandinavia.
“I think this will increase the pace of the entire energy transition. We see it more clearly than ever." A total of €6.46 billion, corresponding to just over SEK 69 billion, was invested in the Nordic and Baltic countries. This means an increase of 252% compared to the year before, which was also a peak. "We were quite surprised ourselves. The last four years have been a fantastic development, but this is 'through the roof' ", says Agerström.
Norce gets NOK 115 million for a hydrogen centre in Bergen
The NORCE-led centre, HyValue, will develop knowledge, methodology and innovative solutions for hydrogen energy carriers. “The [Norwegian] government has ambitions for Norway to take the lead in technology development for hydrogen and hydrogen-based energy carriers” said Minister of Petroleum and Energy Terje Aasland (Labour). The research institutes Sintef Energi and Norce have been selected to lead the initiatives. “The centres will complement each other. Together, we will carry out research that will be of great importance for greenhouse gas emissions and have more efficient use and production of renewable energy,” says Mari Sundli Tveit, CEO of the Research Council. Alexandra Bech Gjørv, CEO of Sintef, believes that hydrogen will contribute to strategic independence in the energy system, which is a topic in Europe today.
Swedish order for Vestas
The company Marhult Vind AB, which is owned by Octopus Energy Group, has ordered 32 MW from the Danish wind turbine manufacturer. The order consists of seven V150-4.5 MW wind turbines, which will be installed in the Marhult wind farm near Växjö in southern Sweden. The turbines are scheduled to be delivered in the second quarter of 2023, and be in operation before the end of the year.
Canary Islands invests in solar heating from Absolicon
Despite the good conditions for solar energy in the Canary Islands, 65% of energy currently comes from fuel oil and diesel oil. The research institute, ITC has bought a facility for solar steam from Absolicon. In addition, the region is contributing the equivalent of SEK 45 million. The investment is part of Spain's multi-billion program to install renewable heat in industry, which is now being rolled out in all regions of Spain.
What we’re reading
- Von der Leyen eyes ending EUs Russian Energy Reliance by 2027 (Bloomberg)
- ‘Betrayal’: US approves just $1bn climate finance for developing countries in 2022 (ClimateHomeNews)
- UN climate change negotiating bloc ejects Russia, condemning its invasion of Ukraine (ClimateHomeNews)
About Nordic Green News
The Nordic countries are some of the most dynamic and successful economies in the world. They are also leaders in sustainability, from renewable energy, biofuels, carbon capture and storage and the hydrogen economy, circular economy business models and battery development, the Nordics are pioneers in policy design, technology development and consumer uptake. Mundus Nordic Green News is covering this transition for the international community. Every day we curate the stories of most relevance to international businesspeople and policy experts from the flow of news. Mundus Nordic Green Indices summarise the meta-data from our daily coverage to enable easy tracking of trends. We supplement these with our own opinion pieces and commentary.
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