Non-hydro renewables will play an increasingly important role in Sweden's power sector as thecountry closes down three nuclear reactors and pursues ambitious emissions targets in the coming decade.Growth in the sector will be largely driven by wind power, which will benefit from the recent extension ofpower subsidy scheme between Sweden and Norway. Biomass will remain an important contributor as well,although it is not poised for significant growth.
Latest Updates And Structural Trends
This quarter we have slightly improved Sweden's outlook for non-hydro renewables sector on the back ofthe country's recently reached agreement with Norway to expand its access to the two countries' sharedgreen certificates scheme (REC). This should improve regulatory environment and boost investment,particularly in the wind sector.
We now forecast the country's non-hydro renewables capacity and generation to rise by an annualaverage of 2.3% and 2.7%, respectively, during 2017-2026. As reflected in our Renewables ProjectsDatabase, wind power sector will be the key driver of growth, with minor additions coming from biomassand solar sectors.