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The Swedish Energy Policy Commission
and the June 2016 Agreement
Bo Diczfalusy
Chief Executive Officer
Energy Policy Commission
Energikommissionen
Sweden´s power mix
Power mix in Sweden 2015 Power mix 1970-2015, TWh
Source: Energimyndigheten
Nuclear34%
Fossil2%
Wind11%Biomass
6%
Hydro47%
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Thermal
Wind
Industrial CHP
CHP
Nuclear
Hydro
Energikommissionen
The background
• Stalling electricity demand
• Ageing nuclear
• Strong and subsidized growth
of renewables
• Highly integrated market
• Market-based electricity certificate
system
• => Persistently low electricity prices,
low certificate prices, low profitability,
low investment rate
Energikommissionen
The role of nuclear
• 10 existing reactors, accounting for some 40 per cent of electricityproduction
• New Post-Fukushima safetystandards calling for major investments
• Owners decided that four reactorswill be closed before 2020
• Tax on nuclear capacity
• Investments in new nuclear?
Energikommissionen
The political situation in the Riksdag
• Red-green minority Government
(since 2014)
• 8 Parties, three political blocks
• Nuclear issue contentious (also
within blocks)
The Energy Policy Commission
Foto: Martina Huber, Regeringskansliet
Energikommissionen
The terms of reference
Task: • Propose the basis for a broad agreement on long
term energy policy, with particular emphasis on the electricity sector.
• Time horizon : 2025/2030 and beyond.
Work divided into three phases :• Knowledge phase
• Analytical work
• Negotiations
Timeline: 1st of January 2017
Foto: Bigstock
Energikommissionen
Energy demand
What is the long term
demand for energy and
how could it be met?
Energy supply
The state of the art of
energy technologies.
How to further integrate
the energy system.
Transmission and
distribution
Key drivers for grid
reinforcements in
electricity, district
heating and gas.
Markets
The functioning of
markets and drivers for
investments. How to
secure investments in
energy and capacity to
meet long term demand.
1 2 3 4
The process
An open and transparent process, involving many actors
The June 2016 Agreement
• Agreement between five Parties, representing 70% of Parliament
• 2040:100 % renewable electricity production (but no ban on nuclear)
• Prolongation and raised ambition of certificate system until 2030
• Tax cuts on nuclear and hydro
• Goal for energy efficiency to be decided shortly
• Market design to be further considered
Energikommissionen
The implications
• Broad agreement – gives certainty to actors
• Orderly transition – security of supply not jeopardized
• Reasonable prospects for nuclear
• Continued support to renewables - lowelectricity prices to be expected
• Strong signal to further interconnection
• No (additional and immediate) intervention in the electricity market
Energikommissionen
1 2 3 4
The way forward
• Final report in December 2016
• Numerous new decisions and
assignments
• Follow-up group (political, high-
level)
• Parliament Bill in 2017
• (General elections to Parliament in
2018)
Energikommissionen
Thank you!
www.energikommissionen.se
@energikommitte
#energikom
email: [email protected]
