Up to now an expansion of the use of biofuels to produce electricity in Sweden has been hindered by the fact that fossil fuels are not taxed for carbon dioxide in the production of electricity. As of 1 May 2003 the new law on electricity certificates came into force, with the purpose of stimulating electricity production using renewable sources of energy: bioenergy, photovoltaic, wind power and small-scale hydropower.
All producers of renewable electricity are granted an electricity certificate for each MWh. The electricity certificates are sold to consumers and suppliers of electricity who in turn are obliged to fulfil a quota. As the quota will be raised every year, an increased demand for electricity certificates is created. This stimulates the expansion of electricity production from renewable sources.
Combined Heat and Power
Combined Heat and Power (CHP) plants produce both electricity and useful heat. Thus, this constitutes a more efficient way to utilise fuel than producing electricity in condensation power plants.
The Swedish District Heating Association estimate that biofuels could produce more than 10 TWh of electricity in 2010, and maybe 20 TWh after another ten years, which is the equivalent of about one-third of the present generation of nuclear power in Sweden. This can be compared to the 1.8 TWh of electricity produced from biofuels in Sweden in 2001. Due to tax accounting rules this number is however underestimated, and the real amount of electricity produced with biofuels is larger.
Industrial back-pressure
When heat and electricity are produced at the same time in industry it is called industrial back-pressure. The only place where biofuels play a role in this context is in the forest industry, where there is scope for producing three times as much electricity from biofuels as the 2.6 TWh produced in 2001.
Gasified biomass
Thermal gasification of biomass is another way to generate electricity. Gasification preferably takes place on the local level. In CHP plants in district heating it is possible to use the gas in a combined-cycle plant. This yields a more efficient generation of electricity than in the steam turbine process used in combustion of solid fuels. In the industrial sector, forest industries can use gasification of black liquors to raise their produc-tion of electricity. With ample investments in these techniques they could become commercial within a decade. Black liquor gasification is the method that is closest to implementation.