Oskar Almén, energy expert at PA Consulting, discusses political change that can lead to a new and more stable settlement at the back of the dismissal from the Swedish Energy Agreement.
Five political parties initiated the Swedish Energy Agreement: the Social Democrats, the Environmental Party, the Center (an agriculture party looking after the interests of farmers), the Republicans and the Christian Democrats. With the Republicans and the Christian Democrats leaving the agreement, it’s safe to say it’s burst. And reactions are mixed – many fear the crack will lead to a halt of foreign investments, but there’s also hope for a political change that can lead to a new and more stable settlement.
The magazine NyTeknik interviewed six experts representing different stakeholder perspectives in the Swedish market including a Professor of electric power systems at KTH Royal Institue of Technology, the CEO the trade organisation Svensk Vindenergi, the Chairman of 100% renewables, the CEO of Swedish Solar Energy, the CEO at Energiföretagen Sverige and Oskar Almén, energy expert at PA Consulting.
“If I was an international investor, for example a large data center, and read that half the group jumps off the Energy Agreement, then it is clear that I am delaying my investment. You do not want to invest in something that becomes unclear,” Oskar says.
At the same time, he hopes that the drop-off will lead to a political shift that will eventually lead to a new, broader and clearer Energy Agreement.
“Politicians have to stop souring and throwing sand at each other. The agreement was not perfect, now they can go back to the drawing board and redo. We know more now than 2016 and there are prerequisites for developing a map of a stable energy system that takes into account both electricity generation and transmission capacity,” he concludes.