Sweden - IEA Wind

Sweden
Section II
Chapter 18
Sweden
18.1INTRODUCTION
Theyear2003wasayearofchangesin
theeconomicsofwindpowerinSweden.
Theinvestmentsubsidyprogram,which
hasbeenrunningsince1991withvarying
levelsexpiredattheendoftheyear.Sodid
small-scalesupport.Thesesubsidieswere
replacedbymarket-basedsupport,asystem
usingelectricitycertificates.Thenational
targetforplanneddeployment(asopposed
toactualproduction)ofwindpowerwas
setto10TWhin2015.Inordertomeetthis
target,planningofnewplantswillmainlybe
focusedonoffshoresites.
18.2NATIONALPOLICY
Duringthe1990s,theSwedishelectricity
markethasbeenreformedinseveral
steps.Since1January1996,Swedenhas
hadaderegulatedelectricitymarket.The
objectivesofthereformweretoincreasethe
freedomofchoiceforelectricityconsumers
andcreateconditionsforgreaterpressureon
pricesandcostsintheelectricitysupply.
Sweden’senergypolicy,asdecidedbythe
SwedishParliamentin1997,istoprovide
secureshort-termsuppliesofelectricity
orotherenergyoncompetitiveterms.The
country’senergypolicyisintendedtocreate
conditionsforefficientuseandcost-efficient
supplyofenergy–withminimumadverse
effectonhealth,theenvironment,and
climate–whileatthesametimeassistingthe
movetowardsanecologicallysustainable
society.
International Energy Agency
ConsiderablechallengesfaceSweden
inthefuture.Thedecisiontophase-out
nuclearpower,thecommitmenttoreduce
greenhousegasemissionsinlinewiththe
KyotoProtocol,andthelimitationsonfurther
expansionofhydropowerresourcesmake
thedevelopmentandmarketintroduction
ofalternativeenergysources,aswellas
successfulenergyefficiencymeasures,of
crucialimportance.Windenergyisoneof
thekeyelementsinthetransformationofthe
powersystem.
During2002,theparliamentdecidedto
establishaplanningtargetforwindpower.
Thetargetissetatanelectricityproduction
fromwindpowerof10TWhin2015,
providedthattheeconomicconditionsfor
windpowerinvestmentswillbesufficient.
Theplanningtargetshouldbeseenasa
markofalevelofambitionregardingthe
creationofopportunitiesforafuturewind
powerdevelopment.
Strategy
Anextensiveenergypolicyprogramstarted
in1998inordertofacilitatetherestructuring
anddevelopmentoftheenergysystem.
Themaindriverofthisworkisintheform
ofasubstantiallong-termconcentrationon
R,D&Dofnewenergytechnology.More
than1billioneurohasbeenallocatedtothe
program,whichconsistsoftwoparts.
Thefirstpartlastssevenyearsandisan
R,D&Dprogramaimedatpromoting
renewableenergysources,newconversion,
andend-useenergytechnologies.Theselongtermeffortswillfocusonnewtechnology
developmentofbiofuel-firedcombinedheat
andpower;biofuelsupplyandashrecycling;
newprocessesforethanolfromforestryraw
materials;alternativemotorfuels;windpower;
andsolarandenergyefficiencyinbuildings,
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National Activities
industry,andthetransportsector.Thispart
endsin2004.
Thesecondpartoftheenergyprogramisto
replacetheelectricityproductionlossofabout
4TWhfromBarsebacknuclearpowerplant.
Afive-year,short-termsubsidiaryprogram
wasfinalizedin2002.Thisprogrampromotes
energyefficiencyandelectricityproduction
fromrenewableenergysources,suchas
biofuels,wind,andsmallhydropowerplants.
Thetotalcostforthetwo-parteffortis1.07
billioneuro,ofwhich0.6billioneuroare
allocatedtothelong-termR,D&Dprogram.
Theresponsibleauthorityfortransforming
theSwedishenergysupplysystemintoan
ecologicallysustainablesystemistheSwedish
EnergyAgency,whichwasformedon1
January1998.
Inregardtowindenergy,thegovernmentis
supportingthedevelopmentandinstallation
ofwindturbinesintwoeffortsmanaged
bytheSwedishEnergyAgency.Theyareas
follows:
1.AnR&Dprogramwithathree-year
budgetofapproximately90millionSwedish
Krone(SEK)for2002to2004
2.Aprojecttosupporttechnicaldevelopments,inco-operationwithmarket
introduction,forlarge-scaleplantsoffshore
andplantsinarticareas(beganin2003with
abudgetof350millionSEKandwillrunfor
fiveyears)
Theutilitiesareengagedinstudies,
demonstration,andevaluationprojects.From
1994,theR&Dactivitiesofutilitiesarecocoordinatedinajointlyownedcompany,
ElforskAB,whichinitiatesprojectsandfinds
sponsorsinthefieldofpowergeneration.In
additiontotheactivitiesofElforskAB,the
largestutility,VattenfallAB,hasawindenergy
developmentprogramofitsown.
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ProgressTowardsNationalTargets
Thetargetofafive-yearinvestmentsubsidy
program(1998to2002)wastoreachan
annualwindelectricityproductionof0.5
TWh,whichwasmanagedin2002.For
differentreasons,theprogramwasextended
intimeandresourcesandcametoanendin
2003.
18.3COMMERCIALIMPLEMENTATION
InstalledCapacity
Theexpansionoftheannualpower
generationfromwindturbines(inGWh)
andtheinstalledcapacity(inMW)at31
DecembereachyearinSwedenisshownin
Figure18.1andFigure18.2.
RatesandTrendsinDeployment
Attheendof2003,thetotalinstalledwind
powercapacityinSwedenwas399MW,an
increaseof54MWfromthepreviousyear
(a16%increase).During2003,thenumber
ofwindturbinesincreasedby9%to55,
creatingatotalof675turbines.Windpower
generationduring2003was690GWh
(preliminary),anincreaseof13%since2002
(609GWh).Theyear2003wasalow-wind
yearinSweden,92%ofanormalwindyear.
Thegenerationrecalculatedtoanormalyear
is750GWh.
ContributiontoNationalEnergyDemand
Windpowercontributestothenational
energydemandwith0.4%ofthetotal
electricityproduction.SeeTable18.1for
thetotalinstalledelectricitycapacityand
generationinSweden.
IEA Wind 2003 Annual Report
Sweden
Figure 18.1 Wind power generation (GWh)
18.4MARKETDEVELOPMENTAND
STIMULATION
generatorsof1,500kWendedin2003as
well.
MainSupportInitiativesandMarket
StimulationIncentives
Thesetwosupportsystemswerereplacedby
anew,market-basedsystemwithtradable
electricitycertificates(Elcertifikat)on1May
2003.Thecertificatesystemwillmovethe
costforsupportingrenewablesfromthe
publictreasurytoelectricityconsumers.
In2003,theSwedishEnergyAgency
launchedaprojecttosupporttechnical
developments,inco-operationwithmarket
introduction,forlarge-scaleplantsoffshore
andplantsinarticareas.Thebudgetis350
millionSEK,andtheprojectwillrunforfive
years.
Theinvestmentsubsidyprogramforwind
power(1998to2002)hadthepurposeof
stimulatingthemarketforwindpower.
Duringthelifetimeoftheprogram,thelevel
ofsubsidieschangedfrom15%to10%of
theinvestmentcost.Theresourcesinthe
programwereallallocatedin2003,andthe
programended.Thegrantedsubsidiesfor
2003were83millionSEK.Theseprojects
hadacapacityof89MW.Anothersupport
–“small-scaleelectricitysupport–”for
International Energy Agency
TheSwedishNationalEnergyAgencyis
responsiblefortheadministrationofthe
certificatesystemandwillevaluatethe
systemduring2004.TheSwedishNational
Gridcompany,SvenskaKraftnät,issues
electricitycertificatestotheoperatorsof
approvedpowerplantsforwind,solar,small
hydro(maximumof1,500kW),biomass,
andnewhydro.Existing,largehydropower
(about65TWh/yr)isexcludedfromthe
electricitycertificatesystem.Different
renewablescompetewitheachotheron
themarket,andonecertificatewillbe
issuedforeachmegawatt-hourofelectricity
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National Activities
Figure 18.2 Wind power capacity (MW)
generated.Fromnowon,theoperatorwill
havetwoproductsonthemarket:electricity
andelectricitycertificates.Theycanbesold
independentofeachother.
certificatepriceduringthatyear,buta
maximumof0.175SEK/kWhfor2003anda
maximumof0.240SEK/kWhfor2004.
UnitCostReduction
Thesystemincludesacompulsoryquota
onelectricityconsumers.Thefirstyear
itwillbe7.4%,whichmeansthat,by
law,electricityconsumersmustbuy
certificatesthatcorrespondto7.4%of
theirelectricityconsumptionduringthat
year.Theelectricity-intensiveindustrywill
beexcludedfromthequotademand.In
addition,aguaranteepriceoftheelectricity
certificatesissetduringtheyears2003
to2007.Thepricein2003was0.06
SEK/kWh.Thequotawillbeincreasedby
theparliamenteveryyear,andthequota
for2010isplannedtobeabout17%.
Thesanctiontobepaidtothestatefor
consumersandelectricitysuppliersthatdo
notfulfilltheirquotademandisdecidedby
theparliamenttobe150%oftheaverage
214
Fundamentalresearchatseveraluniversities,
inco-operationwithdevelopersof
windprojectsandmanufacturers,are
continuouslybeingcarriedoutinorderto
reduceproductioncost.
18.5DEPLOYMENTANDCONSTRAINTS
WindTurbinesDeployed
Theaveragecapacityofturbinesinstalledin
2003wasabout980kW.Withareducedcost
ofproduction,incombinationwiththenew
electricitycertificatesystem,areasonable
conditionforfurtherdevelopmentisexpected.
IEA Wind 2003 Annual Report
Sweden
OperationalExperience
AccordingtoSwedishwindturbinemonthly
andannualstatistics,theaverageavailability
during2002was97.9%.Thesamedatafor
2001was98.2%.From1996to2000,the
averageavailabilitywas98.4%.
MainConstraintsonMarketDevelopment
Theprocessfromplanninganewpower
planttoactualproductionisverytime
consuming,especiallyforoffshoreprojects,
wherefundamentalworkandmoneymust
bespentonenvironmentalstudies.
Publicattitudestowindpower,especially
itsimpactonthelandscape,isasignificant
factorthatinfluencespracticallyevery
windproject.Otherenvironmentalaspects
–suchasnoiseemissionandimpacton
wildlife,bothonshoreandoffshore–are
ontheagendaintheprocessofobtaining
planningandproductionpermits.Extensive
researchhasbeencarriedout,andstillis,
inthisareaofinterest.Theaimistocome
toanagreementonhowwindmillscanbe
properlyintegratedintheenvironment.
Restrictionsfromthemilitaryhavealso
stoppedmanywindprojects.Themilitary
seesrisksfordisturbancesofmilitary
microwavelinks,radar,intelligence
activities,andaircraftatlowaltitudes.A
researchprojectisaimingtocreateareliable
modelofthedisturbancewindturbines
causeonthemilitarymicrowavelinks,
radar,andintelligenceactivities.Thusfar,
theresultsshowthatthedisturbancedue
towindturbinesonradarhasbeenquite
overestimated.Newruleswillfacilitate
deploymentnearsuchmilitaryactivities.
Duetoheavyinvestmentsinvolvedinlargescaleoffshoreprojects,amarketconstraint
maybetheabilitytogettheactualfunding
fortheproject.Mostlarge-scaleprojects
willrequireso-calledprojectfinancing
asafinancialsolution,whichrequiresa
long-termforecastregardingrevenueflow
(i.e.,theelectricitypriceandtheelectricity
certificate).Thisimpliesthatthemarketbasedsystemwithcertificatesmustbea
trustworthyandlong-termsystem.
8.6ECONOMICS
TrendsinInvestment
Duringtheyears1998to2001,
approximately400millionSEK/yrwas
investedinerectingwindturbines.The
2002
MW
2002
TWh
2003
MW
16,097
66.0
16,097
53.0
Nuclear power
9,424
65.6
9,424
65.0
Thermal power
production
(CHP, cold condensing,
GT)
6,374
11.2
6,374
13.0
345
0.6
399
Hydropower
Wind power
Net import
Total
5.4
32,234
148.8
2003
TWh
0.6
14.0
32,294
145.6
Table 18.1 Total installed electricity capacity and generation in Sweden, 31 December
2002 and 2003 (preliminary)
International Energy Agency
215
National Activities
investmentsubsidyof15%hadabudget
of60millionSEK/yr.Thedecidedextra
40millionSEK/yrfor2001and2002has
increasedtheinvestmentsfor2001and
2002to660millionSEK.
electricitypriceismainlyduetoalower
levelofhydropowergenerationasaresult
oflesswaterflowtoreservoirs(Table18.2).
Thepriceschargedtovariouscustomer
categoriesaredeterminedbytariffsystems,
whicharemadeupofamixtureofvariable
andfixedcharges.
Thenew,market-basedsystemwith
electricitycertificatesforrenewable
electricitygeneration,whichreplaced
theinvestmentsubsidy,hasnotyetbeen
evaluated.Sinceithasbeenrunning
lessthanayear,itistooearlytodrawa
conclusionconcerningitsimpactonthe
marketdevelopmentforwindpower.
TrendsinUnitCostsofGenerationand
Buy-BackPrices
TheaverageNordPoolpriceinSweden
during2003was0.333SEK/kWh(http:
//www.nordpool.no,underElspotandthen
MonthlyPrices).Thederegulatedmarket
givesthepossibilityfortheturbineowner
tosellelectricitytoanycustomer.Since1
November1999,thewindenergyproducers
mustcompeteonthesamemarketas
conventionalelectricityproducers.
ThederegulationoftheSwedishandNordic
electricitymarketsin1996initiallyledto
lowelectricityprices,butthetrendchanged
in2001andpricesincreasedduetospotmarketdevelopment.Consumerspaida
significantlyhigherpricein2003compared
toafewyearsago,especiallythosewithout
afixed-pricecontract.Theincreaseofthe
Thebasepriceforelectricitygenerationin
Swedenformostproducersisdecidedbythe
marketpriceonthemarketplace,NordPool.
Sincederegulationin1996,monthlyaverage
spotpriceshavevariedbetween0.066SEK/
kWhand0.668SEK/kWh.Annualaverage
pricein2001was0.211SEK/kWh,andin
2002itwas0.252SEK/kWh.
Typical customer
Network services
öre1/kWh
2002
2003
Apartment
42.8
43.4
Single-family house without electric
heating
37.6
38.2
Single-family house with electric
heating
20.9
21.1
Agriculture or forestry
22.2
Small industrial plant
15.4
Change
%
Electrical energy,
öre/kWh
2002
2003
Change
%
1.40
35.6
51.9
0.46
1.60
31.6
47.1
0.49
0.96
29.6
44.7
0.51
22.8
2.70
29.3
44.5
0.52
15.4
0.00
28.8
44.3
0.54
Medium-sized industrial plant
28.5
44.8
0.57
Electric-intensive industrial plant
28.3
48
0.70
(Footnotes)
1
100 öre = SEK 1
Table 18.2 Price of network service and electricity, excluding taxes, on 1 January 2003 in
sales of electricity to various typical customers
(Source: Elmarknaden, ET 10:2003, Swedish Energy Agency)
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IEA Wind 2003 Annual Report
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Ontopofthatmarketprice,thewind
turbineownerreceivesbylawareductionof
theenergytax,aso-called“environmental
bonus,”whichduring2003hasbeen0.181
SEK/kWh.Itisacompensationforthe
environmentaladvantagesofwindpower.
Thelevelofthisbonuswillgradually
decreaseandbereplacedbytheelectricity
certificatesystem,andafter2009this
bonusisexpectedtobezero.Duringthis
time,thebonusforwindturbinesoffshore
willbeslightlyhigherthanforonshore.
Additionally,therewasatemporarysupport
of0.090SEK/kWhforsmall-scaleelectricity
producers(toamaximumgeneratorsizeof
1,500kW)until30April2003.Thewind
turbineowneralsogetsanincomefrom
thenetowner,relatedtothevalueofthe
decreasedelectricitynetlosses,whichon
averageresultsinabout0.010SEK/kWhto
0.015SEK/kWh.
IndustryDevelopmentandStructure
Aftertheintroductionofelectricitycertificates
on1May2003,windturbineownershave,
onaverage,receivedamarkettenderprice
andothersupport.Approximatepricesareas
follows:
Inthebeginningof2002,anR&Dprogram
inthewindenergyareastartedwitha
three-yearbudgetofapproximately90
millionSEKfor2002to2004.Theresearch
activitiesaredividedintofour,goal-oriented
categories:(1)moreconfidentassessment
ofpowerproduction,(2)cost-effectivewind
energyconverters,(3)effectiveintegrationof
windpowerintothepowersystem,and(4)
betterimpactassessmentsandappropriate
planningandregulation.TheIEAStrategy
onR&D,publishedin2001,influencedthis
subdivision.
markettender,0.330SEK/kWh;
environmentalbonus,0.181SEK/kWh;
electricitycertificates,0.200SEK/kWh;
localgridvalue,0.010SEK/kWh;
totalaverageof0.721SEK/kWh.
18.7INDUSTRY
Severalmanufacturershaveserviceandsales
activitiesinSweden,suchasVestas,Enercon,
ScanWind,andNordex.Twomanufacturers
havedevelopedlargewindturbinesin
Sweden:KvaernerTurbinABandNordic
WindpowerAB.
Manufacturing
The3-MWprototypewindturbine,Näsudden
II,ontheislandGotlandhasgenerated46.056
GWhby2February2004.Itbeganoperation
on1June1993,andthegeneratorhasbeen
connectedtothenetworkfor44,909hours.
Thisisanewworldrecordforelectricity
generationbyasinglewindturbine.The
formersimilarrecordwas36.634GWhforthe
3-MWwindturbineatMaglarpinsouthern
Sweden(inoperation1982to1993).
18.8GOVERNMENT-SPONSOREDR,D&D
TheoverallgoalfortheSwedishwindenergy
researchprogramistodeveloptheknowledge
withinthewindenergyareatomakeit
possibletomanufactureanddevelopwind
turbinesandutilizewindenergyefficientlyin
theSwedishenergysystem.
TheSwedishDefenceResearchAgency
(FOI)managestheprogramonbehalfof
theSwedishEnergyAgency.Theprogram
containsbasicandappliedresearchaswell
asdevelopmentprojects.Basicresearchis
fullyfinancedbytheSwedishEnergyAgency,
whilethelatterrequiresfundingfromindustry.
Moreinformationcanbefoundathttp://
www.vindenergi.org.
Doesnotapply.
International Energy Agency
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National Activities
Priorities
Researchwaspreviouslyverytechnology
oriented,butinastagewhenmorewind
turbinesfitintothelandscape,“softer”issues
(e.g.,planning,environmental,acceptance)
havebeengivenhigherpriority.Atthesame
time,itisimportanttocontinueresearchin
theconventionaltechnologyareasinorder
toincreaseavailabilityandreducecosts.
NewR,D&DDevelopments
Abirdstudyhasbeenfinalizedatthe
offshorewindpowerplants,Utgrunden
andYttreStengrund(inKalmarsund).Radar
hasbeenusedtofollowbirdmovement
inintensebirdmigrationareasinorderto
evaluatepossibleeffectsonseabirds.The
studyshowsthatthereisonlyaverysmall
riskofcollisionbetweentheseabirdsand
thewindmills.Thebirdsavoidthewindmills
withamarginof200mormore.Almostno
birdshavebeenrecordedinjuredordeadat
thewindpowersite.
L.Bergdahl,PhD,atChalmersUniversity,
Sweden,hasconductedavaluable
contributiontotheinternational
standardizationworkregardingiceloads
onoffshorewindpowerplants.Theproject
wasfundedbytheSwedishEnergyAgency
throughthethree-yearR&Dprogram
previouslymentioned.
1990Nogersundone220-kWturbine
1998Bockstigen-Valarfive500-kWturbines
2000Utgrundenseven1,400-kWturbines
2001YttreStengrundfive2,000-kWturbines
Inthesound,Öresund,betweenSweden
andDenmark,Eurowindhasreceived
governmentalpermissionforanoffshore
projectwith48,1.5-MWwindturbines.
Westofthecity,Karlskrona,insoutheast
Sweden,theutilityVattenfallconducteda
feasibilitystudyforanoffshoreprojectwith
large(3-MWto4-MW)windturbines.In
thecity’spreliminaryoversightplanning,the
offshoresiteisplannedforabout100,large
MWwindturbines.
Duringtheyear,severalotherSwedish
offshorewindfarmprojectswerefurther
developed,whichareindifferentplanning
andstudyphases.Theprojectsareplanned
tobelocatedalongtheentirecoastline,but
withaconcentrationinthemostsouthern
partofSweden.Discussionswithlocaland
regionalauthoritiesarebeingcarriedout,
andtheoutcomeofthisisdependenton
amongotherstheeconomicprerequisitesfor
windpoweraswellaspermissionfromthe
government(forplantsgreaterthan10MW).
Authors:SaraHallert,SwedishEnergy
Agency;andKennethAverstad,Vattenfall
AB,Sweden
OffshoreSiting
Thefollowingwindprojectshavebeen
commissionedoffshoreinSweden:
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