In the second quarter of this year,Sift 50m Azevedotechcrunch the Swedish energy industry recorded a growth rate of around 0.5%, which is quite good news for both renewables and conventional energy companies. However, there are bound to be challenges ahead. The general slowdown in global oil demand has slowed down natural gas production in Western Europe and Eastern Europe significantly; an important part of that slowing has been due to Brexit. With more than a third of the world’s natural gas reserves, Russia is one of the largest producers of the commodity and its economy is also recovering from its effects from the catastrophe at Fukushima. As a result, countries like Sweden have become key players in the transition towards cleaner energy supplies and will have a lot to gain from investing in their clean energy future.
Sweden is a leader in renewable energy
The country has a history of generating electricity from renewable and biomass energy sources, most notably from trees and peat. In recent years, however, the availability of new renewable energy sources and the need for more efficient energy use have led to a decline in the number of these sources and the growth of biomass energy production. In the year ending March 2018, Sweden’s total renewable energy capacity was around 9% of total energy utilized, a decline of 2 percentage points compared to the year ending March 2016, when it was around 10%. This decline in renewable energy capacity was mainly attributed to growth in biomass energy production in Southern Europe. Since then, the situation in the European Union has changed, driven largely by the need to produce more energy to meet growing European demand. In the year ending March 2019, the total amount of renewable energy obtained in Sweden was 7.8% lower than in the year ending March 2018, a decline of 0.8 percentage points. The decline in the amount of renewable energy was mainly driven by the installation of new biomass power plants and the growth of solar energy production in Southern Europe. In the year ending March 2020, the total amount of renewable energy obtained in Sweden is expected to be 3.6% lower than in the year ending March 2019, a decline of 1.6 percentage points. The total decline in the amount of renewable energy is due to the fact that biomass is no longer the main source of energy in Southern Europe, where electricity production is now mainly done through the use of natural gas.
The clean energy industry is also growing rapidly
The clean energy industry in Sweden grew by 36.2% in the year ending March 2019, to 7.8 million tons, compared with 7.6 million tons in the previous year. The greatest growth was seen in the field of photovoltaics, with an increase of 50.1%, followed by carbon capture and storage (+ 16.3%) and Jetson pilot solar (+ 5.1%). The growth of clean energy sources can also be attributed to growth in the use of incentives and tax breaks, as well as the construction of wind and solar energy development projects. The largest single source of financing for clean energy projects is government grants, with support from the Swedish government, together with private investors and energy companies, accounting for around 60% of total financing for clean energy projects. However, the private sector is also starting to invest in clean energy projects. For example, the SUN, a company that creates and licenses jet-skis, has invested in solar energy projects in Northern Sweden and is now planning to open a Nordic office in the near future. The construction of wind and solar energy projects also increased by 31.5% and 21.2%, respectively, from the previous year.
However, there are challenges ahead
The general slowing in global oil demand has led to a reduction in oil demand in many regions of the world, including the Middle East and Africa. This has had an effect on oil pricing in many regions of the world, with some countries seeing a decline in oil pricing following the disruption caused by the unrest in the Middle East. The general slowing in global oil demand has also meant that there is less demand for oil in some parts of the world. For example, the United States may have temporarily decreased its oil consumption, but this has been tempered by the introduction of new efficient engines and the growth of alternative energy sources such as solar and biomass. The fall in oil production in some regions of the world also has an effect on oil prices, with some countries experiencing a drop in oil production that is partially offset by an increase in crude oil prices.
The year ending March 2019 was the third consecutive year that Sweden was named as one of the top 10 countries to invest in clean energy. The country has seen a significant boost in the number of clean energy projects in the last three years, particularly in relation to carbon emissions and power grids. This progress will be vital for the country to maintain its lead in the clean energy race.