Energy Efficiency Measure - cost-benefit analyses in the energy sector

Act (2014:268) on certain cost-benefit analysis in the energy field

Ordinance (2014:349) on certain cost-benefit analysis in the energy field

The purpose of the law is to promote an efficient energy supply. The law sets out the provisions that a cost-benefit analysis must be carried out in certain cases to investigate the potential for the use of highly efficient cogeneration, district heating or district cooling and waste heat from industry.

A cost-benefit analysis must be carried out for the planning of:

● A new a new thermal electricity production facility with a total added power of more than 20 MW;
● A new industrial plant with a total added power of more than 20 MW that generates useful waste heat;
● A new network for district heating or district cooling;
● A new energy production facility with a total added power of more than 20 MW within an existing network for district heating or district cooling.

A cost-benefit analysis must also be carried out when planning a comprehensive upgrade of an existing facility.

A cost-benefit analysis must include an evaluation of the costs and benefits that would arise by in question

 1. a thermal electricity production plant operate the plant as a highly efficient cogeneration plant,

 2. an industrial facility operates the facility so that waste heat is used for electricity production or in a network for district heating or district cooling, or

 3. a new network for district heating or cooling or an energy production facility within such a network utilises waste heat from nearby industrial facilities.

Owners/operators of:
● Thermal electricity generators exceeding 20MW of total capacity
● Industrial plants generating useful waste heat exceeding 20MW in capacity
● new district heating networks
● new energy production generators over 20MW in existing district heating networks (art 3 Act 2014:268)

The analysis is carried out as the examination of costs and revenue items calculated for different alternatives. The report is sent to the Swedish Energy Agency by e-mail. The Energy Agency examines the report and makes a decision regarding the necessary action to be taken by the company. The Energy Agency’s decision is sent to the authority issuing the environmental permit for the new plant: either the local county administrative board or the land and environmental court. An environmental permit cannot be granted to these plants without an approved cost-benefit analysis. (arts 6–10 Act 2014:268).

Swedish Energy Agency