Rujuta Pandit

The Swedish Model for low-carbon electricity

Achieving global net-zero goals will require a dramatic expansion of climate finance. While public entities often set ambitious goals, they cannot supply the scale of capital necessary for the transition alone. Effective and efficient capital allocation will therefore depend on robust public-private partnerships. Existing research on transition incentives largely emphasises low- and middle-income countries, despite their relatively low levels of energy consumption.

This dissertation addresses that gap by examining Sweden as a high-income case study. Although Sweden already generates nearly all domestic electricity from non-fossil sources, rising demand from the electrification of manufacturing and end-use sectors presents new challenges. Sweden thus offers a compelling example of how developed economies have navigated the energy transition in the past and plan to do so in the future.

The study investigates three core research questions: 1) What incentives and mechanisms has the Swedish government used to promote a transition toward a low-carbon electricity system, and how successful have these efforts been?, 2) How do key stakeholders perceive the effectiveness of the government’s efforts to encourage the transition?, and 3) What lessons can be drawn from Sweden’s successes and challenges to aid and inform policymakers in other countries and regions pursuing similar low-carbon electricity transitions?

Methodologically, the research combines a literature-based analysis with four semi-structured interviews with senior professionals in the Swedish government and power sector. The findings highlight Sweden’s progress and persistent challenges, offering insights and recommendations for policymakers in other regions with ambitious low-carbon goals.