Mistra Electrification co-organizer of High-Level Conference

The Royal Swedish Academy of Engineering Sciences (IVA) is organizing the high-level conference “Climate Urgency and the Nordic Response” on June 12 in Stockholm, in collaboration with Mistra Electrification and Mistra Carbon Exit. Marcus Wallenberg, Chair of IVA, and Romina Pourmokhtari, Swedish Minister for Climate and the Environment, will deliver the opening speeches.

Among other participants are Henrik Henriksson, CEO of H2 Green Steel, and Jan Moström, CEO of LKAB.

From Mistra Electrification, researchers Filip Johnsson, Lisa Göransson, Lars Zetterberg, and Magnus Hennlock will participate, as well as the program’s chairperson Karin Reuterskiöld. They will talk about the following:

Filip Johnsson, Professor of Energy Systems, Chalmers University of Technology, Program Manager Mistra Electrification:

  • Sweden’s potential for renewable electricity production is very good compared to other countries in Europe, according to a report to be released in conjunction with the conference. Sweden stands out positively because our electricity production is already nearly fossil-free and because we have a net export of electricity on an annual basis, which almost no other countries have.
  • A high carbon price will only mean marginally higher prices for many end products and services.
  • The challenges for the transition are not primarily about technology, but about getting people to accept the construction of new electricity infrastructure.
  • The polarization in the energy debate is unfortunate. There will be no major differences in either electricity prices or the ability to meet demand whether we have an electricity system with or without new nuclear power.

Lisa Göransson, Associate Professor of Energy Systems, Chalmers University of Technology:

  • More wind and solar power will result in more variable electricity production. What do we do when the wind isn’t blowing, that is, how do we handle weather-dependent power sources?
  • Historically, Sweden has mainly looked at the production side and sized the electricity system for the hour of the year when electricity demand is highest. But the most cost-effective energy system utilizes the inherent flexibility on the demand side, in industries and transportation.
  • The ability to store hydrogen, store electricity in batteries, and the low cost of storing hot water enable cost-effective flexibility. It is about not only focusing on the need for capacity but also looking at how large the capacity peaks are, how often they recur, and how long-lasting the variations are.

Lars Zetterberg, Senior Researcher, IVL Swedish Environmental Research Institute:

  • The price of emission allowances is a game-changer for the industry. When it is between 70 and 100 euros per ton, it becomes profitable to transition, allowing fossil-free steel and cement to compete with traditional steel and cement, according to a new report to be released in conjunction with the conference.
  • Following the latest tightening of the emissions trading system, the issuance of emission allowances will cease in 2039 instead of 2058. This means that after 2030 there will be a shortage of emission allowances, which will drive up prices. Thus, the pressure on the basic industries and refineries to transition will be significant.
  • As we approach 2040, there will be a clear scarcity in the system, making it very expensive for those who have not transitioned. What do we do then? Will we relax the regulations? Will we allow credits in the form of negative emissions into the system? What risks are there?

Karin Reuterskiöld, Partner Forever Sustainable, Chair of Mistra Electrification:

  • The money and the willingness to invest are there to carry out the energy transition. What is needed are long-term and stable political decisions, but without these conditions, many investments will not materialize.
  • Increasing amounts of money are flowing into the pension system. They need to be placed safely and long-term to benefit both society and pension customers. Therefore, politics must provide good conditions for investing the money.
  • In the energy transition, many new business models are circular, which means that traditional business models of commercial banks do not always work. For example, circular business models require large investments in the beginning, but then significantly less once the business is stable. This has led to a rise in other financing methods, including leasing.

Magnus Hennlock, Researcher, IVL Swedish Environmental Research Institute:

  • Presents under the title “How can we reach social acceptance for the energy transition?”