26
September
2022
|
12:07
Europe/Berlin

"The political argument over energy must end"

Summary

As representatives from the wind power and nuclear power industries, we want an end to the political quarrel in the energy debate. There is no contradiction between the two forms of energy. It is not question of choosing one or the other. Demand for electricity is growing so fast and so much that there is room for all kinds of fossil-free production to meet our needs. The Swedish political establishment must come together, with the goal of creating the conditions for the market to produce all the electricity our country needs, write Daniel Badman, CEO of The Swedish Wind Energy Association, and Johan Svenningsson, CEO of Uniper Sweden.

Sweden's electricity consumption of 140 terawatt hours (TWh) has been relatively constant over a long period. However, we have now seen the rapid and dramatic increase in our electricity consumption. We are expected to need twice as much electricity within the next 20 years.

The main reason for this is the changes we see taking place in industry and transport brought about by climate change. Major investments are now being made, for example, to manufacture fossil-free steel, hydrogen and batteries. Sweden can become a world leader in these markets. With improved industrial competitiveness, we can stop climate emissions and create growth in employment and tax revenues nationwide. The countries that are most successful when it comes to electrification of industry are the winners of the future. Sweden should take the opportunity to take the lead.

The tragic war in Ukraine also shows how important it is to have a secure supply of home-grown energy. Russia's exports of oil and natural gas to Europe are financing the war that Russia started. The EU has therefore developed a plan to make Europe independent of Russian fuels by 2030. The EU want to see rapid investments in the production of new forms of electricity. Sweden must be involved and must play its part.

Our electricity production must now undergo rapid and major expansion. An expanded production of around 10 TWh per year is needed to meet the growing demand for electricity. It is a very big challenge, but one that we will certainly be able to meet. Our wind power capacity alone is growing by 7 TWh per year between 2022 and 2024.

However, the future expansion of electricity production is under threat. The current expansion of wind power is based on permits from previous years, but obtaining new permits is becoming increasingly difficult and drawn-out. A recent study shows, for example, that Swedish municipalities rejected applications for 8 in every 10 wind turbines last year. Applications for permits for more nuclear power will probably also be problematic. Furthermore, under current legislation, new reactors can only be built on existing nuclear facilities - ruling out the expansion of small modular reactors (SMR).

Despite the fact that swift and sweeping measures are required, Swedish politics is focused on other priorities. Ahead of the election in September, the focus is again on positioning and posturing rather than on providing real solutions. This leaves the impression that Sweden is now facing a choice between wind power or nuclear power. But the need for electricity is increasing so fast and so much that there is scope for all types of fossil-free power.

For many years to come, we will need to produce electricity from nuclear power, wind power and all the other forms of energy we currently use to help us achieve our climate goals, while also being open to new technologies. Together, all forms of energy can help Sweden have access to electricity at competitive prices in the future - one of our strongest competitive advantages today.

Political will is needed for us to achieve this. The goal must be for us to reach broad agreement to create the conditions for the market to produce all the electricity that our country needs. The focus needs to be on what our electricity system as a whole must offer in order to meet society's needs. Swedish energy and climate policy must be taken very seriously. The parliamentary elections in September are not just about the next four years, but about the country's welfare and industrial future.

When it comes to energy, the most important role for Swedish politics is to have a vision of a country that is climate-neutral but also a leading industrial nation. We must also ensure that we have long-term regulations with incentives that steer the country on the right course. Only then will market players invest on a very large scale that we now need in order to cope with the transition.

Short-term gains in public opinion when it comes to energy policy are made at the expense of Sweden's opportunities to achieve its climate goals and to be a leading industrial nation. May this give us the courage and political drive we need to create the conditions for a fossil-free Sweden based on a long-term and broad consensus on energy policy.

Daniel Badman, CEO The Swedish Wind Energy Association

Johan Svenningsson, CEO Uniper Sweden

Article published originally on May 23: https://www.di.se/debatt/debatt-politiska-braket-om-kraftslag-maste-fa-ett-slut/

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