CHP and DHC deployment in Sweden has historically been supported by a number of incentives, including subsidies for infrastructure development, energy efficiency projects, and technology research and development. In 2013, Sweden’s CHP capacity was 5.0 gigawatts electric (GWe), of which 1.4 GWe served industrial sites and 3.6 GWe was linked to district heating (DH) networks. More than half of the population is served by DH networks.
However, a shift towards lower-cost competing technologies for heat and power generation, such as wind power and heat pumps, along with market saturation and improved energy efficiency in buildings have contributed to a slowdown of CHP and DHC deployment. Despite this slowdown, Sweden continues to create innovative solutions in the CHP and DHC markets, such as new pricing structures for DH that allow it to compete with other technologies. Sweden’s scorecard rating is a 4.5/5 when benchmarked against global best practices.