Sweden has got the largest share of renewable energy in the European Union

Sweden the top nation in the European Union regarding the share of energy coming from renewable sources, according to a recent study by the Swedish Energy Agency. Hydropower and forrest-based bioenergy are two contributing factors. 43,3% of the energy comes from renewable, up from 33,9% in 1990. 52% of the power supply is generated by renewable sources. The largest share is reached in the power sector, followed by the paper & pulp industries and the district heating sector. According to the study, the largest room for improvements regards the transport sector, which only represents 1% of the renewable energy use in Sweden.

Other countries in Scandinavia, while non-members of the European Union, generate an ever higher share of their energy from renewable sources. Iceland is the foremost example, with 73% of total primary energy supply and 100% of power production comes from renewable sources. Further on, an impressive 98% of Norwegian power supply comes from hydropower.

There are certainly many opportunities to increase the share of renewable energy in Sweden even further. Many medium-sized to large initiatives are under way. Large wind farms are being developed throughout the country for power production, and many medium-scale biogas plants are planned in southern and central Sweden. The biogas sector is already extensive in southern Sweden and in the Stockholm area. Further it is fairly within reach to increase the hydro power output by increasing and optimizing the generation the rivers already being used, and to develop low-temperature geothermal energy systems for heating. And as capital costs decrease, solar power and wave power will also be feasible options, although it would take many years for these types of energy to constitute an important part of the Swedish energy sector.

Investments in renewable energy reach USD100 billion per year

Renewable energy investments now amount to USD100bn according to a report by the United Nations.

There is no question about this area being a part of the mainstream investment world. Some types of renewable energy investemts (large scale hydropower projects in particular) have represented an important part in the portfolio of energy companies since decades or even longer. Other kinds, such as wind power and solar power play an important role since more recently.

And a higher demand for energy, increasing oil prices, an increasing world population and the fear of climate change is going to keep the importance of this area growing. Cleantech is one of the fastest growing investment sectors in the US, increasing by 18% during the first quarter of this year - despite the current financial unrest. And as I predicted, energy efficiency plays an increasingly important part. It is the fastest growing segment in cleantech, with capital invested in Power and Efficiency Management Services increasing 454% from last year.

According to the National Academy of Engineering, of the 14 greatest engineering challenges for humanity, almost half are related to renewable energy and cleantech. If that tells us something about the future, the cleantech and renewable energy share of investments will keep growing.