Sweden Renewable Energy Market | Size, Share, Trends and Forecast to 2028

Sweden Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewables deployment in the coming years.

Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of the establishments primarily engaged in operating renewable electric power generation facilities. The power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or to electric power distribution systems.

Sweden Renewable Energy Market Scenario

The majority of Sweden's electricity is generated by hydro and nuclear power plants, with the wind making an increasing contribution. Heating is primarily provided by bioenergy-based district heating and heat pumps.

Sweden was the first country to implement carbon pricing, and it now has the world's highest carbon price, which has proven effective in promoting decarbonization.

The transportation sector, which is still heavily reliant on oil, accounts for the majority of Sweden's greenhouse gas emissions. The government of Sweden has set a target of reducing transportation emissions by 70% between 2010 and 2030, and it is promoting transportation decarbonization through electrification and advanced biofuels. Sweden is also a proponent of industrial decarbonization, and it is home to one of the first large-scale projects for hydrogen-based steel production.

As the electricity demand is expected to skyrocket in the future years due to the ongoing electrification of transportation (Electric Vehicles), the country has decided to rely more on renewable energy sources as fossil fuels are being phased out gradually to meet its renewable energy target.

In 2021, the electric power generation in Sweden was 171.07 terawatt-hours. Renewables accounted for more than 50% of the generated electricity.

According to the International Renewable Energy Agency (IRENA), the installed capacity of Solar Photovoltaic in Sweden was 1577 MW, while for wind, it was 12808 MW. In the past decade, each time that the amount of solar photovoltaic installed capacity doubled globally, the price of installing solar panels and modules declined by 34%.

Sweden's Solar Power

Sweden has multiple seasons, due to which the amount of sunlight varies every season. Swedish summers are quite cold and have more daylight hours. In fact, solar panels perform better in colder climates, implying that Sweden has good circumstances for producing plenty of solar energy despite having fewer hours of daylight during the winter months. The extra solar energy generated and sold back to the grid during the summer months compensates for the loss of solar energy during the winter months.

Sunlight harvesting has emerged as the quickest solution to filling a portion of the hole created by the closing of two nuclear reactors in southern Sweden, which is home to the country's largest towns and industries.

According to preliminary numbers given by the Swedish Energy Agency, Sweden's operational PV capacity reached 1.59 GW at the end of December 2021, up from 1.09GW the previous year.

The year 2021 was the strongest year for solar deployment in the country so far, with roughly 500 MW of additional capacity added to the grid. In 2020, the country installed 393 MW, 286 MW in 2019, and 184 MW in 2018. Sweden now has approximately 92,360 PV arrays, with approximately 26,500 added last year.

The major factor driving the solar energy adoption in the country is the solar rebate program, for which the Swedish Energy Agency (Energimyndigheten) devoted around USD 570 million for the period 2009-2021.

In April 2021, the Swedish government announced an additional USD 30.6 million in funding to assist homeowners in implementing residential PV systems under the country's solar rebate plan for rooftop solar.

(For more insights and analysis, consider our report on Sweden Solar Power Market)

Sweden's Wind Power

The wind energy installed capacity in Sweden stood at 12080 MW by the end of 2021, which is an increase of 20.1% from the previous year with Onshore wind dominating the wind energy mix in Sweden.

In Feb 2022, the government of Sweden unveiled a plan to develop offshore wind power projects with 20TWh to 30TWh of annual renewable energy generation capacity.

The state has also identified areas in the Gulf of Bothnia, Baltic Sea, and the North Sea and has marked these for the development of offshore wind farms.

Sweden is expected to significantly increase its wind power capacity. According to Swedish Energy Agency estimates, Sweden is predicted to grow wind energy generation by more than 70% by 2024 compared to the level in 2021. The decision comes as Europe as a whole wants to push even harder to reduce its reliance on fossil fuels, not just to reduce emissions but also to reduce its reliance on Russian oil and gas.

(For more insights and analysis, consider our report on Sweden Wind Power Market)

Other Renewable Sources

Sweden has an abundance of moving water and biomass, which adds to the country's high renewable energy contribution. Hydropower (water) and bioenergy are the most important renewable energy sources in Sweden, with hydropower mostly used for electricity generation and bioenergy used for heating.

Sweden made significant investments in hydropower in the 1950s, 1960s, and 1970s. The initiative's principal purpose was to cut costs for its industry so that the country could compete in the global market. Many hydropower plants are located on large rivers in the north, above the Arctic Circle.

Sweden Energy Policy

In the Swedish energy system, several diverse actors interact with one another. Swedish energy strategy seeks to balance environmental sustainability with competitiveness and supply security. To a large extent, energy policy is based on legislation enacted within the EU.

Sweden’s policy goals call for achieving 100% renewable power by 2040 and net-zero carbon emissions by 2045.

Sweden’s parliament passed an Integrated National Energy and Climate Plan in 2020 to fulfill its target and achieve carbon neutrality.

The National Energy and Climate Plan (ENCP) is a ten-year integrated document prescribed by the European Union to each of its member countries in order for the EU to reach its overall greenhouse gas emission targets. The EU Energy Union's five dimensions are addressed in the Energy and Climate Plan: decarbonization, energy efficiency, energy security, internal energy markets, research, innovation, and competitiveness.

The plan sets out the following objectives:

To reduce GHG emissions through medium and long-term targets, as well as to increase the share of renewable energy in total energy consumption.

To ensure energy efficiency with roadmaps, targets for the renovation of the national stock of non-residential and residential buildings, both public and private.

To diversify energy sources and supply from third countries to ensure energy security.

To increase the use of new technologies and new services to make the transition to a sustainable energy system.

To develop measures to increase the interconnectivity of the internal energy market.

Recent Developments

HPSolartech, a renewable energy company, has signed a deal to build 40 land-based solar energy parks in southern Sweden with infrastructure funding company Sunspark.

Renewable Power Capital (RPC) has paid EUR 800 million for a 528MW cluster of ready-to-build onshore wind projects in Sweden's Kramfors and Sollefte municipalities. It covers the acquisition of projects as well as the commitment of construction funds. The four sites are projected to generate power ready for grid export in the fourth quarter of 2025.

What do we cover in the Report?

Blackridge Research's Sweden Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Sweden.

Furthermore, the report will contain the drivers and restraints within Sweden's Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards) as well as country-specific regulations. Finally, the presentation would enable one to identify market opportunities and plan for long-term growth.

The impact of the COVID-19 pandemic is an integral part of the report.

This product will be delivered within 3-5 business days.