We believe that the industry must be able to trust that there is a stable electricity supply at long-term competitive prices
The production of metals and minerals is energy intensive. Although many of the processes are among the most energy efficient in the world, energy consumption is a major cost item for companies. In order to continue investing in the future, the mining industry must be able to rely on stable electricity supply at competitive prices.
The mining and mineral industry is an energy-intensive industry. A stable energy supply and long-term competitive price levels are the prerequisites for companies to drive production – and above all be able to make the often extensive investments required to develop the business.
This also applies to the energy systems, they must maintain a quality that does not jeopardize the operations. Among other things, it places high demands on safe electrical systems.
Politics plays a big role by setting the rules for the electricity generation that is possible in the country. Through taxation and subsidy systems, the policy also affects investment and production. Svemin believes that the total cost of electricity use, including taxes and other instruments, should be kept as low as possible in order to create a long-term incentive for conversion to the sustainable society.
We give high priority to energy issues
The Swedish – largely carbon dioxide – neutral – energy system is a role model for other countries in terms of climate impact, which is currently being discussed very actively.
However, energy costs are still a heavy item for mineral and metal mining companies. They often constitute 10-15% and in some cases more of the value added in production. Energy issues are therefore a high priority in Svemin’s work.
Access to fossil-free electricity with low system cost and high reliability – a key factor
The availability of electricity at competitive prices has led to a relatively extensive but efficient use of electricity in industry. In the quest for fossil-independent and climate-efficient solutions, electrification is a key factor for the mining and mineral industries. Many of the industry’s restructuring strategies are based on electrification of machines and processes. Therefore, continued fossil-free electricity with low system cost and high reliability is central.
The innovation power in Swedish industry is the most important competitive advantage for companies. The Swedish mining and mineral industry accounts for a heavy part of Swedish technology development – innovations that also benefit other industries. A concrete example is the industry’s pilot plants for developing climate-smart processes that will be decisive when we switch to the fossil-free society.
Compensation of indirect effects on electricity prices is important
One consequence of the Nordic electricity market’s design with marginal cost pricing is that the price of emission rights affects the electricity price. This means that, in addition to direct costs for emission rights, companies also pay the penalty imposed on electricity prices as a result of emissions trading – despite the fact that Swedish electricity is virtually carbon dioxide-free. There is an opportunity for EU Member States to offset some industry for this extra cost, which to most countries such as Germany, Finland, Norway, England, Holland and France, while Sweden has chosen not to. This is an issue that should be dealt with equally throughout the EU so as not to distort competition. Svemin and Swedish industry agree that a compensation system for indirect price impact on electricity should be introduced.
The physical interconnection of the power markets is now a fact in Northern Europe and something that is sought after in other parts of Europe. This should mean that there are conditions for common compensation systems. Why should customers in different nations that are interconnected in interconnected electricity networks / markets have different competitive conditions?
In the energy sector, Svemin works for:
- that energy policy must be long-term and guarantee a stable supply of electricity at competitive prices
- relevant instruments in the energy area that provide incentives for energy efficiency and take into account the competitiveness of the mining and mineral industries
- the industry must be compensated for indirect effects on electricity prices