Foreword

The International Energy Agency (IEA) has been conducting in-depth peer reviews of its member countries’ energy policies since 1976. This process not only supports energy policy development but also encourages exchange of and learning from international best practice and experiences. In short, by seeing what has worked – or not – in the “real world”, these reviews help to identify policies that achieve objectives and bring concrete results. Recently, the IEA has moved to modernise the reviews by focusing on some of the key energy challenges in today’s rapidly changing energy markets.

Sweden is leading the way towards a low-carbon economy globally, with the lowest share of fossil fuels in its primary energy supply among the IEA member countries, and the second-lowest CO2 emissions per gross domestic product and per capita. In its 2016 Energy Agreement, Sweden has set ambitious long-term energy and climate targets. Now, it needs to turn them into action. The transport sector requires extra attention since it accounts for half of energy-related CO2 emissions in the country. New policies that support low-emission vehicles and biofuels will push the transport sector in the right direction, but the outcome of these must be closely monitored to verify that they are stringent enough to meet the ambitious emission targets.

Smart policies and measures are essential to decarbonise the economy at least cost. Sweden’s market-based approach to energy policy, which is focused on creating well-functioning and competitive energy markets, has often proved successful. The challenge going forward is to ensure that markets can deliver the targeted emission reductions while maintaining security of supply during the energy transition. In particular, Sweden needs to make sure that the energy-only power market can deliver a stable electricity supply, while facing higher shares of wind power and a potential nuclear phase-out. This will require a well thought-through market design and further regional collaboration.

Sweden continues its quest for a secure, affordable and environmentally sustainable transformation of its energy sector. Although being one of the leaders in low-carbon energy, the country still faces many challenges going forward. It is my hope that this review will guide Sweden in its energy transition and support its contribution to a cleaner, more sustainable and secure global energy system.

Dr Fatih Birol

Executive Director

International Energy Agency

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FOREWORD

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