Government making broad investments in energy

Sweden has ambitious goals for energy and climate adaptation. The 2016 energy agreement between the Government, the Moderate Party, the Centre Party and the Christian Democrats sets the target of 50 per cent more efficient energy use by 2030, and 100 per cent renewable energy production by 2040. The Government has adopted a target of net zero emissions of greenhouse gases by 2045.

"The budget contains several major investments that will bring us closer to our goals. The expansion of wind power and solar energy continues, and we also want to make it easier for households and businesses to use energy more efficiently," says Minister for Policy Coordination and Energy Ibrahim Baylan.

The Budget Bill for 2018 is based on an agreement between the Government and the Left Party. The new investments in the energy budget for 2018 are outlined below.

Energy efficiency in industry

To achieve the goal of 50 per cent more efficient energy use by 2030, measures are needed in this area. The Government is therefore investing SEK 125 million in 2018–2020 in a new programme for energy efficiency in industry. In addition to the energy efficiency gains that will be made, employment and growth will benefit if businesses can reduce their energy costs and increase their competitiveness. The Government proposes increasing the appropriation by SEK 25 million in 2018. In 2019 and 2020 the appropriation is expected to increase by SEK 40 million and SEK 60 million respectively.

Increased support for solar electricity

Solar energy will play an increasingly important role in a future sustainable energy system. There is a great deal of interest in installing solar cells. The Government has made it easier and more worthwhile for households to invest in the production of solar electricity and is now strengthening the appropriation to solar cell support so that more people can take advantage of this. The Government proposes (as previously announced) that funding to solar electricity increase by SEK 203 million in 2017, by SEK 525 million in 2018 and 2019, and by SEK 915 million in 2020, in appropriation 1:7 Energy technologies.

Municipal energy and climate advisory services important for adaptation

It has to be easy to do the right thing – to opt for renewable energy or use energy more efficiently. Municipal energy and climate advisory services are available throughout the country and give households and businesses the opportunity to contribute to solving the challenge of climate change. The Government proposes that state support for municipal energy and climate advisory services be extended and expanded by SEK 125 million in 2018, by SEK 160 million in 2019 and by SEK 200 million in 2020 (appropriation 1:2 Measures for energy efficiency).

More resources to local and regional energy and climate adaptation

Strategic measures are needed throughout the country to address energy and climate adaptation. The Government is therefore investing in strengthening the resources of public sector actors at regional and local level. One investment will promote more sustainable transport solutions. In addition, information campaigns for children and young people will be conducted.

The Government therefore proposes increasing appropriation 1:10 Local and regional capacity development for climate and energy adaptation by SEK 65 million in 2018. The appropriation in 2019 and 2020 is expected to increase by SEK 90 million and SEK 135 million respectively.

New support to municipalities for more wind power

The expansion of Swedish wind power continues and it is important to achieve the goal of 100 per cent renewable electricity production by 2040. There is good potential for continued expansion in Sweden. The Government therefore proposes new support to municipalities to facilitate the establishment of wind power facilities through an increase of SEK 70 million per year in appropriation 1:5 Planning support for wind power from 2018.

Energy supply as part of the total defence agreement

The Government sees the need to strengthen total defence in the coming years against the background of security developments in the neighbourhood and events revealing society's vulnerability. The Government proposes that the Swedish Energy Agency receive an additional SEK 10 million per year from 2018 for work to enhance civilian defence in energy supply (appropriations 1:1 Swedish Energy Agency and 1:8 Electricity preparedness).

Export promotion

To meet the Government's high level of ambition in global climate action and to contribute to the export strategy, the Government is providing additional resources to the Swedish Energy Agency to send staff on secondments abroad. This will be to countries or international bodies where Sweden needs to increase its local presence, where investments in energy infrastructure and technology are expected to grow most in the coming years, and where the largest greenhouse gas emissions are expected. The Government therefore proposes providing the Swedish Energy Agency with an additional SEK 5 million as of 2018.

Investments to continue in 2019 and 2020

The Government proposes that the investments of SEK 850 million in 2018 be followed by SEK 920 million in 2019 and SEK 1.5 billion in 2020.