Biomass Industry Generating 20% of all Energy Consumption in Sweden
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Biomass is responsible for generating 20% of all energy consumption in Sweden and wood-fired district heating systems satisfy more than half of the residential heat demand, according to a new report by Research and Markets, Dublin, Ireland, titled Biomass Industry in Sweden. The industry became robust because of a combination of factors and has evolved since its beginning.
The majority of Sweden's energy supply is for the purpose of electricity generation, district heating, and fuel transportation, the report notes, adding that renewable resources contributed more than 10% of Sweden's electricity supply as of 2011. Sweden's abundant forest resources make biomass feedstock the largest renewable energy source as 60% of Sweden is covered in forests, and woody biomass, including timber residual feedstock.
The Swedish government pursues a regulatory strategy calling for nuclear power and renewable resources including wind power, solar power, biomass power, and hydroelectric power for electricity generation, to help the country make the transition to a low-carbon economy. Going forward, the EU's directive on renewable sources will likely make the Swedish government's call for stricter policy measures, resulting in a rapid expansion of renewable power generation within the country's total electricity supply mix.
Currently, Sweden uses tax breaks and other financial incentives, including exemption from tolls and parking fees, to encourage citizens to drive cars that utilize renewable fuels, the report explains. The utilities industry in Sweden is characterized by a limited choice for consumers, as the utilities are often state or regional monopolies. In Sweden, limited choice for consumers becomes a major challenge for potential biomass operators to enter Sweden's biomass power market. Although liberalization has allowed the entrance of an increasing number of smaller electricity resellers, the Swedish market is still composed of several large-scale companies.
More information is available online.
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