Page 65 - European Energy Innovation - summer 2018 publication

Summer 2018 European Energy Innovation 65

SWEDEN ENERGY

To reach the political targets in the Our simulations show that efficient Contact information
best possible way it is important utilization of existing and upcoming
to maintain the focus on well- interconnectors between the The Swedish Energy Markets
functioning markets and market Nordic countries and the Inspectorate is a regulatory
efficiency while managing the continent is of vital importance authority which strives to enable
challenges of more volatile power for stimulating more renewable well-functioning energy markets.
production. This can be done through power production.
creating frameworks that support www.ei.se
and stimulate the use of smart In 2016 the Swedish Energy Markets
technologies and customers’ and Inspectorate performed a study Email: registrator@ei.se
other actors’ active participation in on the potential of demand side
the market. flexibility and important conclusions
were reached. For example, the
Above all it is important to apply analysis showed that there was a
the right regulatory framework to substantial potential in household
make the transition possible while heating as a flexibility resource, due
maintaining market efficiency. We to the inherent inertia and heat
are convinced that the current holding-capacity in the material of
market model is flexible enough to the houses. To realize this potential,
incorporate the growing amount of customers need hourly metering and
wind and solar power if the market hourly settlement, and this can be
rules adapt to the new realities. provided with smart metering and
Demand side flexibility and the a proactive regulation. In the latter
utilization of existing and planned case, the Swedish Energy Markets
interconnectors are important parts Inspectorate as a regulator has a
of the solution. key role to play and has already
made legislative suggestions to the
Sweden has one of Europe’s government in this area.
highest interconnection ratios with
many over-head and under-sea There are additional challenges that
cables to neighboring countries. In need to be addressed before we
addition to transporting electricity, can reach the target of 100 percent
interconnectors can function as renewable electricity production
enablers of competition across by 2040, but we are convinced that
national borders as they are moving Sweden can reach this goal while
power to where it is best needed. maintaining an effective market
The European Internal Energy Market model where supply and demand
relies on optimal use of existing determine the price. This is a market
international interconnectors as well that brings benefits to customers
as new interconnectors being built in and that is welfare enhancing for the
the right places. society as a whole. l

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