M and KD shakes investor confidence in energy policy

According to the Swedish energy agency will need to be around 100 TWh of new electricity production in the coming for over 20 years, only to replace older production facilities. Additional investments may be needed for the electrification of the transport sector and industry. This requires access to capital at low costs, which, in turn, requires that investors have confidence in energy policy.

It is not possible to overstate the importance of stable and long-term rules of the game. Then energiöverenskommelsen concluded in 2016, it has taken decisions on investment of 62 billion dollars in new wind power. The electricity production from this is estimated to be approximately 19 TWh, twice as much as the electricity that falls away when Ringhals 1 and 2 are turned down.

, give great and immediate benefit to the climate through increased electricity export and electrification. New wind power can now be built without the support, at about half the cost of new nuclear power. For a given investment is obtained, thus, twice as much electricity production and carbon reduction.

The rapidly falling costs of wind energy depends to a large extent on technological developments, but also lower capital costs. Investors, often from countries outside of Sweden, has assessed the political risk as low in Sweden, which attracts capital and reduces the risk premium. So far, the perceived political stability has made Sweden a priority country for energy investments.

Many investors have neither the mandate to invest in other than renewable. But regardless of the market's development in the future, prevent energiöverenskommelsens current wording does not investment in nuclear energy.

the Goal of 100 percent renewable electricity generation is in line with general trends, where investors choose to invest in renewable energy. A survey among more than 100 international investors shows that the reasons is that investments are perceived as safe and ethical. Risks related to regulatory frameworks and uncertain policy is what mainly creates doubts about the investment.

In a new report, the Swedish energy agency assessment that it is fully possible with a development to a well-functioning 100 per cent renewable electricity system on the market principles, if the whole society is striving towards the same goal.

If energiöverenskommelsen would be broken at risk of the outcome being that the costs of investments in renewable electricity production increases, and that the expansion slows down. It would reduce the long-term security of supply, increase costs for consumers and reducing the ability of Sweden to quickly reduce climate-impacting carbon dioxide emissions.