INTERNATIONAL ENERGYAGENCY The IEA examines thefull spectrumof energy issuesincluding oil, gasand coal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement andmuch more. Throughits work, the IEAadvocates policiesthat will enhance thereliability, affordabilityand sustainability ofenergy in its31 member countries,13associationcountries andbeyond. IEAassociationcountries: IEA membercountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and anymap included herein arewithout prejudice to thestatus of or sovereignty overany territory, to thedelimitation of internationalfrontiers and boundariesand to the name of anyterritory, city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Table of contents Executive summary............................................................................................4Energy system and policy landscape ............................................................10Introduction .....................................................................................................10Climate and energy strategy ...........................................................................11End-use sectors ..............................................................................................18Electricity.........................................................................................................30Fuels ...............................................................................................................32Recommendations ..........................................................................................36Focus areas.......................................................................................................39Preparing for electrification .............................................................................39Recommendations ..........................................................................................52Hydrogen for decarbonising industry ..............................................................56Recommendations ..........................................................................................63Annexes.............................................................................................................65 Executive summary Sweden has ambitious energy goals and is in a promising position to achievethem.It already has a relatively low emissions energy system as well as favourablenatural resource endowments, a broad political and public consensus on its net zeroambitions, and a clear strategy to meet its goals (primarily through electrification ofend-use sectors). Its energy sector stands out in several ways, including its largelydecarbonised power and buildings sectors and its leading efforts on low-carbon heavyindustry. These and other factors can help it remain in the vanguard of clean energytransitions and maintain a competitive edge as an export-oriented economy. Animportant next step in Sweden’s energy transition will be to take a co-ordinatedapproach to aligning its policy and regulatory settings across different sectors of theeconomy. The IEA Energy Policy Review aims to provide practical, timely advice toSweden as it advances its energy and climate strategy, including in two key focusareas: 1) accommodating electrification; and 2) expanding the role of fossil-freehydrogen. Sweden’s legally binding 2045 net zero emissions target together with energysector targets guide its energy policy.Net zero equates to an 85% cut in domesticgreenhouse gas (GHG) emissions from 1990 levels (38% below 1990 levels in 2023),after allowing for expected absorptions. This target is supported by a robust policyframework that includes binding interim targets, a climate action plan to meet thesetargets (updated every four years), supportive climate legislation and a Climate PolicyCouncil (that assesses Sweden’s climate policies yearly). Overall, this frameworkprovides long-term clarity on goals, together with regular reflection and course-correction, and independent expert assessments and recommendations. Leveraging and expanding Sweden’s low-carbon power sector to electrify thewider energy system is key to achieving the next stage of its transition.Thecombination of Sweden’s well-functioning, market-based electricity system and nearzero-emissionspower mix(relying primarily of hydropower,nuclear and wind)provides a strong foundation upon which to electrify the wider energy system. Thiswill require a large buildout of new clean power gener