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35

Sweden

35.1 Major Developments in 2018 Sweden has the largest market share of plug-in electric vehicles (PEVs) in the EU (EAFO, 2018)90 and is third globally (IEA, 2018)91. In January 2018, the world’s most ambitious climate law entered into force in Sweden. The overreaching target is for Sweden to reach net zero greenhouse gas emissions by 2045. The law requires all policy areas, not only environment, climate, transport and energy, to contribute to achieve the targets. The transport sector has an intermediate target to reduce its GHG emissions by 70 % compared to 2010by 2030. Electrification, biofuels and a more transport-efficient society has been pointed out as key enablers to reach these goals92.

In July 2018, a bonus- malus scheme replaced the PEV rebate programme, which was introduced in 2012. The bonus-malus scheme enhanced the PEV sales the second half of 2018 and sales were over 10 % each month. On the total, the share of PEVs in new-sales over 8 % in 2018 and the number of PEVs were almost 70,000 vehicles93.

In addition to the investment scheme Klimatklivet – the Climate Leap, which was introduced in 2015, a private home-charger support scheme was introduced in 2018. Private households are the main target group but one charging point could also be granted to a cooperative. For many PEV owners in multi-family dwellings, it was difficult to reach the consensus need to apply through Klimatklivet.

The public charging infrastructure in Sweden has developed significantly during 2018, from approximately 4.600 charging points to almost 7.000. Many of these have been granted support through the investment scheme Klimatklivet, the Climate leap, which by the end of 2018 in total had granted investment support to

90 European Alternative Fuel Observatory, 2018

91 IEA, Nordic EV Outlook, 2018

92 http://www.energimyndigheten.se/nyhetsarkiv/2017/strategisk-plan-for-hur-transportsektorn-ska-bli-fossilfri/

93 Power cicle – Plug-in electric vehicles in Sweden, 2019

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over 30,000 charging points. 22,000 of these are non-public charging points and 8,000 are public94.

Since 2016, regional public transport authorities have been granted purchase subsidies for electric buses but in 2018 this scheme also entitled private transport companies the purchase rebate.

There are no local or regional policies to promote PEVs in Sweden but in 2018, the government decided to assign the municipalities the governance regarding environmental zones. As of 1 January 2020, current regulations on environmental zones are complemented by two new types of stricter environmental zones and then municipalities may decide whether to introduce environmental zones95.

35.1.1 Demand Side Policies There have been different demand-side policies for more environmentally friendly-vehicles since 2006. Between 2006-2009, Sweden had a general green car purchase subsidy and in 2012, the first PEV specific purchase subsidy was introduced. Between 2012 and June 2018, a super green rebate was granted to newly registered plug-in passenger vehicles. In July 2018, the PEV purchase rebate scheme was replaced by a bonus-malus scheme.

Bonus-Malus Scheme

In July 2018, the first bonus-malus scheme for light duty vehicles in Sweden was introduced. Battery electric vehicles (BEVs) and fuel cell vehicles (FCV) are eligible the maximum bonus, which is 6,000 EUR. For plug-in electric vehicles (PHEVs), the bonus decreases linearly until 60 grams of carbon dioxide (CO2) and 1,000 EUR. Vehicles with emission levels over 95 grams of CO2 are penalised with a malus in relation to the emission level up to 140 grams of CO2. Unlike the PEV rebate scheme, bonus-malus also include light duty vans, which is an important improvement for many fleet vehicles.

Vehicle Tax

In parallel to the introduction of the Bonus-malus scheme, the vehicle tax system was revised. Previously, PEVs was tax exempted for the first 5 years but since July 2018 the tax exemption lasts for only 3 years.

94 Naturvårdsverket – The Swedish Environmental protection agency. 2019 https://www.naturvardsverket.se/Stod-i-miljoarbetet/Bidrag/Klimatklivet/Resultat-for-Klimatklivet/

95 Swedish Government, 2018 https://www.regeringen.se/pressmeddelanden/2018/08/forordningsandringar-om-miljozoner/

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Reduced Value of Fringe Benefits

Company cars can reduce the value of fringe benefits for PEVs compared to the equivalent, conventional fossil-fuelled car. After adjustment, the value of fringe benefits is reduced by 40 %, to a maximum of 1,000 EUR.

Given the PEV deployment among company cars, it constitutes for 75 % of the PEV ownerships, this has probably been the most important incentive to promote the use of PEVs in Sweden.

Support to E-Bikes, LEVs and E-Boats

In January 2018, the Swedish government introduced a purchase rebate to e-bikes and light electric vehicles (LEVs). In June 2018, the support scheme also came to include electric outboard motors for boats. The budget for 2018 was 35 million EUR and each rebate comprised 25 % of the cost up to 1,000 EUR. Most of the budget in 2018, almost 30 million EUR, were granted for the purchase of e-bikes.

35.1.2 Charging Infrastructure Policies

Klimatklivet – The Climate Leap

In September 2015, the Swedish government launched the investment support scheme Klimatklivet, the Climate Leap96. Klimatklivet is a general investment support scheme, not specifically aiming for charging infrastructure deployment, granting up to 50 % of the investment cost. Between 2015 and 2018, about two-thirds of the applications granted investments support were to deploy charging infrastructure. Approximately 30.000 charging points had been granted support. The majority, 22.000 charging points, are non-public installations for company fleet vehicles or for residents in multi-family dwellings. Other measures that have been granted investment support through Klimatklivet were for example bike garages, biogas production plants, LBG refuelling stations.

Home-Charging Support Scheme

In 2017, the Swedish government decided on a home-charging support scheme. From 1 February 2018, private households are subsidized up to 1,000 EUR or by 50 %, when installing an EVSE at their home97. By the end of 2018, 3,060 home-

96 https://www.riksdagen.se/sv/dokument-lagar/dokument/svensk-forfattningssamling/forordning-2015517-om-stod-till-lokala_sfs-2015-517

97 https://www.riksdagen.se/sv/dokument-lagar/dokument/svensk-forfattningssamling/forordning-20171318-om-bidrag-till_sfs-2017-1318

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chargers had been granted support. The interest for the scheme increased over the year and almost 45 % of the home-chargers was investment support in December.

Additional Charging Infrastructure Along Bigger Roads

Klimatklivet has contributed to the expansion of the fast charging corridors along several roads, but Sweden is a widespread country and there are roads where the market drivers currently are not enough. Therefore, the Swedish Government commissioned the Swedish Transport Agency to investigate possible public measures to improve the market conditions in these areas98. The report concludes that approximately another 70 fast-chargers, with at least 50 kW, where needed for a nation-wide coverage in Sweden. The report suggests a procurement scheme, similar to the Norwegian model, to achieve the proposed deployment99.

35.1.3 Incentives for Public Transport

EV Bus Rebate

In 2016, the Government introduced a purchase subsidy specifically targeting electric buses. In the beginning, battery electric and plug-in hybrid buses could be granted rebate. In 2017, fuel cell buses using renewable hydrogen were also included in the scheme. In 2018, the EV bus scheme expanded to also entitle private transport companies to the purchase rebate.

35.1.4 Research and Demonstration Electromobility R&D and Swedish industrial policy interact to put fossil-free vehicles and vessels to the market. Sweden is an automotive country, with a broad portfolio of passenger cars, heavy-duty vehicles, construction machinery, vessels and marine engines, and the scope of the electric mobility in Sweden include all segments.

35.2 HEVs, PHEVs and EVs on the Road Sweden has the largest global market share in the EU (EAFO, 2018) and the third largest globally (IEA, 2018). In 2018, PEVs constituted 8.1 % of the new-car sales (Bil Sweden, 2019). The total stock of PEVs in Sweden is almost 70,000, see

98 http://www.regeringen.se/regeringsuppdrag/2018/01/uppdrag-om-laddinfrastruktur-langs-storre-vagar/

99 https://trafikverket.ineko.se/Files/en-US/48899/Ineko.Product.RelatedFiles/2018_172_infrastruktur_for_snabbladdning_langs_storre_vagar_regeringsuppdrag.pdf

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Figure 1. Twelve Swedish cities have today introduced in total 95 electric buses, many as a part of a broader EV strategy.

Figure1: The number of plug-in electric vehicles in Sweden between 2009 and 2018 (Source:

Power circle, 2019, Plug-in electric vehicles in Sweden)

There are no regional or local policies to promote PEVs, only variable levels of engagement. The cities and regions in Sweden with a high PEV uptake have often worked consistently with PEV promotion and EVSE deployment activities for many years.

Even though the conditions for PEVs in Sweden are more favorable outside the dense cities, the three largest metropolitan areas – Stockholm, Gothenburg, and Malmö – comprise 75 % of the PEVs in Sweden. The highest uptake of PEVs in Sweden is found in Stockholm. Approximately half of the PEV stock is registered here (33,290).

In 2018, approximately 65 % of the new-car sales in Sweden were fleet vehicles or company cars. The setup for company cars in Sweden ranges from financing models where the employer pays for all costs of the car and the employee is just taxed for the benefit, to operational leasing models where the employee pays for all costs for the car with a gross salary deduction. Given the PEV deployment among company cars, it constitutes for about 75 % of the PEV ownerships, this has probably been the most important incentive to promote the use of PEVs in Sweden.

Governmental fleets are governed by certain procurement policies in Sweden, which force them to particularly consider climate factors when acquiring cars and vans or other mobility services. The public procurement policies in Sweden does

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also promote an increased use of renewable fuels, such as sustainable biofuels and electricity.

Table 1: Distribution and sales of EVs, PHEVs and HEVs in 2018 (Data source: BilSweden, 2019, the Swedish Transport Administration, 2019, Hydrogen Sweden, 2019)

Fleet Totals on 31 December 2018

Vehicle Type EVs HEVs PHEVs FCVs Totalf Quadricyclesa 251 n.a. 251

Passenger vehiclesb 16,664 90,273 49,394 42 4,870,783

Commercial vehiclesd 2,661 52 9 0 572,075

Busesc 100 137 0 14,378 n.a.

Truckse 4 28 0 0 83,977

Totals without bicycles 19,680 90,490 49,403 14,420 5,527,086

Total Sales during 2018

Vehicle Type EVs HEVs PHEVs FCVs Totalf

Quadricyclesa 32 n.a. n.a. n.a. n.a.

Passenger vehiclesb 7,147 21,020 21,811 5 365,535

Commercial vehiclesd 2,465 52 9 0 56,617

Busesd 42 15 8 0 931

Truckse 3 2 0 0 6,205

Totals without bicycles 9,689 21,089 21,828 5 429,288

Table 2: The top 15 selling PEVs in Sweden and prices (Data source: the public website www.miljofordon.se, accessed on 24 January 2019)

Market-Price Comparison of Selected BEVs and PHEVs in Sweden

Available Passenger Vehicles Taxed (25 % VAT) but Unsubsidized Sales Price (in EUR)

BMW 530e 53,050

BMW I3 (BEV) 37,500

Hyundai IONIQ BE 16 39,790

KIA Niro PHEV 31,870

n.a. = not available a UNECE categories L6-L7 b UNECE categories M1 c UNECE categories M2-M3 d UNECE categories N1 e UNECE categories N2-N3 f Including both conventional and alternative technologiestimated data at the end of 20

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KIA Optima PHEV 40,490

MINI Countryman Cooper S 39,900

Mitsubishi Oitlander PHEV 39,990

Nissan Leaf 37,990

Renault Zoe 32,990

Tesla Model S 79,800

VOLVO S/V90N Plug-in hybrid 55,490

VOLVO V60 N Plug-in hybrid 54,890

VOLVO XC60N Plug-in hybrid 60,280

VW E-Golf 40,990

VW Passat GTE 42,600

35.3 Charging Infrastructure or EVSE The Swedish market for charging infrastructure is completely deregulated, which enables almost anyone to become a charging point operator (CPO). This has created an ecosystem of charging infrastructure benefits from interactions between private and public efforts to deploy EVSE.

A non-public charging point is often considered as the enabler to switch from a conventional vehicle to a PEV. The cold climate in Sweden implies an extensive deployment of block heaters and other power outlets (foremost standard household outlets, Schuko) to precondition the vehicles during the winter. This infrastructure amounts of more than 600,000 outlets and even though it is rudimentary, hence not adapted to power loads over several hours, it constitutes an excellent foundation for cost-effective EVSE upgrades, both at private houses but also in public parking lots.

Since 2015, Klimatklivet has granted support to 22,000 non-public charging points and the home-charging scheme added another 3,060 non-public charging points during 2018.

The public charging infrastructure in Sweden today is the result of public and private actions, sometimes in joint forces, and constitute about 7,000 charging outlets at almost 1,700 charging stations100, see Figure 2a. Klimatklivet have granted support to about 8,000 public charging points. Figure 2b shows the locations of granted charging points with a charging power below 23 kW, entitled in Sweden as destination charging. Klimatklivet has also granted support to DC fast chargers, for example along motorways. See Figure 2c.

100 www.nobil.no Accessed 2019-01-25

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(a) (b) (c)

Figure 2: Public charging EVSE infrastructure in compliance with the EU standard, blue=existing yellow=granted support through Klimatklivet ; (a) existing EVSE (b) EVSE < 23kW (c) 50 kW DC

Table 3: Information on charging infrastructure in December 2018 (Data source: nobil.no)

Charging Infrastructure on 31 December 2018 Chargers Quantity AC Level 1 2,050

AC Level 2 (≤22,2 kW) 4,000

CHAdeMO 350

CCS 350

Tesla 250

Totals 7,000

35.4 EV Demonstration Projects Sweden continues to develop electric road systems (ERS). Today, two pre-commercial procurement projects are running. One system works with pantographs on public roads, which was launched in 2017. In 2018, a system that uses a rail in the road to charge a vehicle was augurated. Not only are the technologies demonstrated, but also for example the business models surrounding the electric road systems are investigated.

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This section will present two interesting demonstration projects, but the Swedish public R&I portfolio is broad. During 2018, there has been an increased focus on maritime applications and freight.

Northvolt Battery Pilot Production

In 2018, an increased effort was made for a complete European circular value chain around batteries. In February 2018, a decision was made to support Northvolt AB with a maximum of 14.6 million EUR for the implementation of the project, Northvolt Pilot Production, which is expected to lead to a pilot plant for battery cell production in Västerås. The project is a step towards getting a complete European circular value chain around batteries, everything from mining to recycling.

Figure 3: Northvolt, Circular value chain around batteries

Electric Site

During 2018, the Electric site project was finalised. In this project, Volvo Construction Equipment and Skanska have developed and tested several new electric construction and mining machines. Most noticeable perhaps is the HX concept, a battery electric, autonomous dump truck with 15 metric tons load capacity. The HX fleet is controlled by an automation system, and includes a safety system, which has been developed and evaluated as part of the project. Also an electric, 75 tons excavator has been developed. The results show that a production system, such as the one demonstrated in this project, has the potential of reducing CO2 emissions by 95 as well as reducing the operating costs by 25 %.

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Figure 4: Volvo HX02, a battery electric, autonomous dump truck with 15 metric tons load

capacity

35.5 Outlook Given the current policies, prognoses indicate a market share of about 13 % of PEVs among passenger cars in 2019. In the beginning of 2019, Sweden got a new government. Some of the current policies will probably be revised during 2019, but it is most likely that this will be done with the intention to boost the transition of the transport sector. One factor that currently determines the deployment of PEVs in Sweden is the availability of PHEVs in family-sized market segments. During 2018, the introduction of the WLTP implied a reduced number of PHEV models on the Swedish market, thus probably a bigger demand for PEVs than the 8 % market share. The supply of vehicles will continue to influence the Swedish market growth.