Our vision
The electricity system must always be able to meet the needs of electricity users.
The electricity system must always be able to meet demand.
SKGS is a collaboration between Sweden’s largest electricity users: the forest, chemical, mining, and steel industries. Working closely with industry organisations representing these sectors, SKGS develops positions on substantive issues relating to Sweden’s electricity supply. Our basic starting point is that Sweden must have a robust electricity system that is always able to meet electricity users’ needs for fossil-free electricity at competitive costs. The total cost of electricity grids, electricity taxes, and electricity production – system costs – largely determine the competitiveness of our electricity-intensive industries.
Large quantities of fossil-free electricity will be necessary to achieve the climate transition. The implementation of the energy-intense industry’s roadmaps for fossil free competitiveness is necessary to reach the ambitious Swedish climate target of net zero emissions no later than 2045.
SKGS safeguards the long-term competitiveness of Sweden’s energy-intense industry. The cost of electricity is a large and increasing proportion of the sector’s production costs. The climate transition and electrification are progressing faster than expected, which is increasing the load on Sweden’s electricity system.
Conditions for Swedish industry to remain competitive
If the climate targets are to be met while maintaining competitiveness, it will be necessary:
- For Sweden to plan to double electricity use by 2045.
- For competitiveness and cost-efficiency to be the watchwords for the climate transition.
- To conduct industrial activities throughout Sweden.
Concrete measures to strengthen the electricity system
To ensure the reliable supply of electricity at competitive prices, SKGS has identified a number of necessary measures:
- The Swedish government’s electrification strategy must be implemented.
- Svenska kraftnät and other authorities must plan for a doubling of electricity use by 2045.
- Proactive expansion of infrastructure to meet future needs.
- More efficient and predictable permitting processes in relation to electricity production, electricity grids, and industrial operations.
- Fully fossil-free energy production is needed, especially in southern Sweden.
- Existing nuclear energy, hydropower and cogeneration need to be safeguarded.
- Onshore wind power will have a role to play in the short term, offshore wind and nuclear power in the longer term.
- Barriers to new nuclear power, including small-scale modular reactors (SMRs), must be eliminated.
- Industry must be protected from high electricity costs and be able to compete on equal terms.
- The option of a differentiated energy tax on electricity for energy-intensive industries must be maintained in Sweden’s energy tax directive.
- Compensation for indirect costs must also be considered in Sweden.
Referral opinion from SKGS
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