Cruising Bloomberg news for something to write about – besides ASAP Rocky – one headline from July 31st leapt out: “Sweden’s Biggest Cities Face Power Shortage After Fuel-Tax Hike” (bloomberg.com). Wait. What? We do? What fuel-tax hike?
A press release in April from the Ministry of Finance confirmed the tax hike (though not the possible power shortage). As part of the 73-point agreement between the Liberal, Green, Social Democratic and Center Parties, and formally entered in the Revised Spring Budget (vårändringsbudgeten), the previous tax relief measure was taken away (), meaning that taxes were raised. This to “contribute to” the switch-over to non-fossil fuels, and help make Sweden the first fossil-free welfare country in the world.
According to Bloomberg, the tax on fossil fuels used in heat and power stations has effectively tripled. Utilities like Stockholm Exergi AB, Eon and Göteborg Energi AB are quoted as having said they will be halting or cutting power production – although it won’t effect heating. It may, however, effect your wallet, so check your bill in the coming months.
In 2016, the Moderate, Center, Social Democratic and Christian Democratic parties agreed on the goal of making Sweden’s electricity 100% renewable by 2040. Now, the Moderates and Christian Democrats are saying they’re still on board – but hey, they weren’t ever talking about getting rid of nuclear energy by 2040. Nuclear energy has no CO2 emissions and is therefore not the fossil fuel that needs to go. The other parties, in particular the Green Party naturally, disagree, saying that nuclear power was absolutely part of the deal.
They were the ones who were there, so it’s hard for the rest of us to know and the matter remains a mystery. Will nuclear power be able to keep Sweden’s lights on until hydro- and wind power can take up the slack? Right now, they cover around 50% of Sweden’s energy needs, 11% or so is given us by fossil fuels and the rest, give or take, is covered by nuclear power ().
It’s early days, but already the leading fresh bread company in Sweden, Pågen, decided this last June not to expand its enterprise in Malmö when the energy company Eon said it couldn’t guarantee a steady supply of electricity ().
Brown-outs, anyone?