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Electricity, gas and district heating supply 2015:

Lower electricity use trend levelling out

Statistical news from Statistics Sweden and Swedish Energy Agency 2016-11-30 9.30

This emerges from the 2015 report "The yearly electricity, gas and district heating supply". The publication contains data regarding production, economy and network activity from about 800 enterprises in the energy sector.

Electricity use in residential buildings increased by 4 percent, despite yet another relatively warm winter in 2015. Preliminary figures also show that the recent years' decreases in the industry sector are diminishing and some industries are increased energy use. Public administration, service and others decreased use slightly. In total, it looks as though the trend of reduced electricity use is about to end.

"Our population is increasing by more than 100 000 people per year, so it is reasonable that this also leads to use of more electricity. Electricity may also help improve resource efficiency in many processes. Our priority is to enable reduction of fossil energy supplies use to achieve the political sustainability objectives," says Daniel Kulin from the Swedish Energy Agency.

In electricity produced in 2015, 50 percent came from power plants in electricity price area SE3, or Stockholm, in which the major part naturally came from the area's nuclear power. In terms of effect, this can be seen in relation to table 1B, which shows that about half of the effect currently installed is located in price area SE1, or Luleå, and SE2, or Sundsvall, mainly in hydropower. In this context, it is easy to see the challenges of the electricity system as we enter an era of renewable types of energy.

The statistical report also describes parts of the economy in the energy industry. Despite very high electricity production in 2015, revenues for electricity sales are dropping. Revenues have dropped by 20 percent over two years. This applies to both export and domestic sales. The drop in revenues can be interpreted in many ways. From the enterprises' perspective, it means low earnings and possibly worse investment opportunities. From the perspective of the customers, a drop in energy expenditure can be seen as being positive.

At the same time, it looks like revenue from electricity network activities has increased in the same time period. The base rate is regulated by the Energy Markets Inspectorate and is dependent on enterprises' capitalisation and the amount of energy traded in the network.

"Of course it is positive that an industry facing an adjustment is in god financial health. At the same time, lower prices on a marginal cost market are natural as we develop non-fuel dependent types of energy and use free energy such as wind and solar energy. The markets will continue to be affected as we readjust to renewable energy systems," says Daniel Kulin at the Swedish Energy Agency.

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