Energy and Climate

The burning of fossil fuels like coal, oil, and natural gas leads to significant emissions of greenhouse gases, sulfur dioxide, and nitrogen oxides. These contribute to climate change, acidification, and health problems. Waste incineration is also a major source of emissions, particularly since waste often contains plastic made from fossil fuels.

Electricity and Climate

Electricity is one of the most essential components of our energy system and plays a crucial role in the transition to a more sustainable society. It can be produced from both fossil and renewable energy sources, meaning its climate impact can vary. To reduce greenhouse gas emissions, it’s essential to increase the share of electricity from renewable sources such as solar, wind, and hydropower.

Energy Becomes Electricity

Electricity is produced by converting energy, for example, when water flows through turbines in hydroelectric plants or when solar cells convert sunlight into electricity. The electricity is then transported via the grid to homes and businesses, where it powers everything from lighting and heating to industrial processes and transportation.

How we produce and use electricity has a major impact on the climate. If we use electricity more efficiently and reduce waste, we can lower the need for fossil fuels and thus reduce emissions. Increased electrification in the transport sector and industry can also help replace fossil fuels – as long as the electricity comes from fossil-free and renewable sources.

The future power grid will need to be more flexible to balance supply and demand as the share of solar and wind power increases. By storing energy in batteries and developing smart grids, we can ensure that electricity is used in ways that deliver the most climate benefits.

Sweden's Electricity Production

Sweden's electricity production is largely fossil-free, relying on hydropower, wind power, and nuclear energy. Electricity produced in combined heat and power plants and within industry primarily uses biofuels, which do not amplify the greenhouse effect but do cause other emissions, such as nitrogen oxides and particles. It’s also important to remember that even fossil-free energy has some environmental impact, such as hydropower’s effect on ecosystems and wind power’s impact on the landscape.

Since Sweden is part of the interconnected European electricity system, our electricity consumption affects power production in neighboring countries. If we have a surplus of electricity, we can export and replace fossil fuel-based electricity abroad, but if we have a deficit, we’re forced to import electricity that’s heavily reliant on fossil fuels. Therefore, reducing electricity consumption is always good for the climate – either by enabling more fossil-free electricity exports or reducing fossil-based electricity imports.

Electrification and the Risks of Increasing Emissions

Electrification can reduce climate impact if it replaces fossil fuels, such as in the case of electric cars. However, if electricity replaces more sustainable alternatives, like district heating, it could lead to higher emissions. It’s therefore important to use electricity in a way that delivers the greatest climate benefit, prioritizing its use in sectors like transportation and industry.

Green electricity guarantees provide financial support for renewable production but do not directly affect the electricity mix in the grid. Today, demand for green guarantees is relatively low, meaning prices are kept low, and the effect on the grid is limited. If more people demand green electricity, it could contribute to increased investments in renewable energy.

To ensure electricity provides the greatest climate benefits, it should be used where it’s truly needed, while simpler energy sources can be used for heating and other purposes. In a resource-efficient energy system, it’s important to use our resources in the most effective way.

By understanding the electricity system from a broader perspective, we can make better decisions that maximize climate benefits – both in Sweden and across Europe.

Renewable and Fossil-Free Electricity

The most important thing you can do to reduce your business’s emissions from electricity is to choose energy from renewable sources. Renewable electricity is generated from sources that are naturally replenished and are unlikely to run out in the foreseeable future, including solar and wind. Hydropower was previously included in this category but has been excluded due to its significant environmental impact.

Advantages of Renewable Electricity

Globally, fossil fuels still dominate electricity production – in 2022, they accounted for 61% of the world's electricity supply. In Sweden, however, the situation is different: 69% of electricity production comes from renewable sources, with an additional 29% being fossil-free but not renewable. The term "green electricity" is often used to describe both renewable and fossil-free electricity, but it’s important to distinguish between the two, as their environmental impacts vary.

Renewable electricity is produced from energy sources that are constantly replenished by nature, such as hydropower, wind, solar energy, and bioenergy. These sources emit very little carbon dioxide during operation and generally have a lower impact on the climate compared to both fossil fuels and some fossil-free energy sources.

Fossil-free electricity includes energy that does not emit fossil carbon dioxide during production but is not necessarily renewable. Nuclear power is a prime example: it has low carbon emissions but relies on uranium, a finite resource, and produces radioactive waste. Hydropower is often classified as renewable, but its impact on ecosystems means it is sometimes discussed separately.

Benefits of Renewable and Fossil-Free Electricity

Lower Climate Impact

Both renewable and fossil-free energy sources have much lower greenhouse gas emissions than fossil fuels. Renewable electricity, especially from wind and solar, has almost no direct climate impact once the plants are built. Nuclear power also has low emissions but requires energy-intensive uranium mining and waste disposal.

Economic Benefits

In the Nordic region, where hydropower makes up a large portion of the electricity mix, electricity prices are often lower than in many other European countries. Renewable energy sources also have low operating costs – wind, sun, and water are free. Over the long term, a higher share of renewable energy could lead to more stable electricity prices, as it’s not reliant on fluctuating fuel prices.

Reduced Environmental Impact

Fossil fuels cause significant emissions of sulfur dioxide and nitrogen oxides, contributing to acidification and health issues. Renewable and fossil-free alternatives dramatically reduce these emissions. However, they each have varying impacts on nature – hydropower can alter ecosystems in rivers and lakes, wind power impacts the landscape, and nuclear power presents waste disposal challenges.

Energy Security and Reduced Import Dependency

Renewable and fossil-free energy sources reduce dependence on imported fossil fuels. Solar, wind, and hydropower are domestic energy sources, enhancing energy security and making us less vulnerable to geopolitical crises and rising fuel prices.

Green Guarantees and Labels

If you want to ensure your electricity comes from renewable or fossil-free sources, you can choose certified green electricity. Green guarantees are a system where electricity producers receive certificates for the renewable or fossil-free electricity they generate. By purchasing electricity with labels like Bra Miljöval or the EU Ecolabel, you support both low climate impact and more sustainable use of natural resources.

Choosing renewable electricity is a crucial part of the transition to a more sustainable energy system. By increasing the share of renewable energy and using electricity more efficiently, we can reduce climate impact and create a more sustainable future.

Reducing Electricity Consumption

It’s important to remember that no energy production is completely environmentally friendly; all forms of electricity generation have some form of environmental or climate impact over their lifecycle. It’s also important to note that the electricity you purchase may not be the same electricity delivered to your property.

In Sweden, we are connected to the larger Nordic electricity grid, where imported electricity from fossil sources occurs. In other words, everyone has an average climate impact, regardless of which electricity they buy. Therefore, one of the most environmentally friendly actions is to reduce total electricity consumption.

Electricity and District Heating

Emissions of greenhouse gases from electricity and district heating production account for around 9% of Sweden’s total emissions. Compared to 1990, emissions from electricity and heating have decreased by 41%, and in 2023, they were just under 4 million tons of CO2 equivalents. Waste incineration accounted for 80% of emissions in 2023. Compared to 2022, emissions from this sector decreased by 5%.

Despite the increase in district heating production by 54% since 1990, emissions from the electricity and heating sector have fallen. This is due to the transition from burning fossil fuels (coal, gas and particularly oil) to primarily biofuels, as well as waste that is partly biobased.

The expansion of solar and wind power continued. Greenhouse gas emissions from Sweden’s electricity and district heating sector are low compared to many other countries, as electricity production is primarily based on hydropower, nuclear power, wind, and biofuel-based combined heat and power. As the share of renewable energy, especially wind and solar, increases, emissions continue to decrease.