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Outline
- What? – General information about the paper.
- Why? – Should we bother?
- How? – A Valley of Death approach. Figures and data
will be presented.
- Conclusions– Strengths and weaknesses?
The strengths and weaknesses in the Swedish renewable energy sector - - PowerPoint PPT Presentation
The strengths and weaknesses in the Swedish renewable energy sector - - PowerPoint PPT Presentation
The strengths and weaknesses in the Swedish renewable energy sector an assessment SAEE 2016 Lule Jonas A Grafstrm Lule University of Technology 971 87 Lule, Sweden jonas.grafstrom@ltu.se | +46 703475854 1 Outline What?
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What?
Strength/weakness: Observations about factorsthat relative to other countries are good/bad or worthy of note. Swedish Renewable energy sector: Companies concerned with the creation of energy and energy technology. Focus: Technological change and opportunity for it.
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Why bother?
- Absorptive capacity - the ability to receive technological
spillovers or use advancements made abroad are a function of the country's past experience in research (Cohen & Levinthal, 1989).
- International technology flows crucially depends on the
destination country's ability to comprehend and make use of external knowledge (Mancusi, 2008).
- Technological capabilities of a country are important for the
development of renewable energy since it has been found to spur innovation (Consantini et al., 2015).
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A technological development approach
Invention: The creation of new products and processes through the development of the new knowledge or from new combinations of existing knowledge. Innovation: The initial commercialization
- f invention by producing and marketing a new good
- r service or by using a new method of production
Diffusion: occurs after the innovation has taken place. The innovation progressively becomes widely available for use, through adoption by firms or individuals.
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Average wind power investment cost, US$ per kW (2008 prices)
500 1000 1500 2000 2500 3000 1991 1993 1995 1997 1999 2001 2003 2005 2007 Denmark Germany UK Spain Sweden France Italy Netherlands
From Grafström and Lindman (2016) in press.
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Diffusion: Installed wind power capacity (MW)
Source: EPI (2014).
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The innovation chain and the technology ‘‘valley of death’’ (adapted from Grubb 2004).
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- "Drill for oil? You mean drill into the ground to try and find oil?
You're crazy." -- Workers whom Edwin L. Drake tried to enlist to his project to drill for oil in 1859.
- "There is not the slightest indication that nuclear energy will ever
be obtainable. It would mean that the atom would have to be shattered at will." -- Albert Einstein, 1932.
- "The Americans have need of the telephone, but we do not. We
have plenty of messenger boys." -- Sir William Preece, chief engineer of the British Post Office, 1876.
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Number of firms 197 Number of work places 372 Number of employees 5 763 persons Total net revenue 46 billion sek Number of big firms (> 250 employees) 1 Number of medium size firms (51– 249 employees) 12 Number of small size firms (< 50 employees) 184
The Swedish energy firms, numbers, revenue, size. Strömberg 2013.
Wind Solar Bio energy 133 115 +300
Review of the professional organizations in member companies 2015
18% 5% 59% 18%
Employees
Wind Solar Bio Hydro/wave
The sector: in numbers
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Environmental area Number of work sites Turn over Export Air Emissions Control 128 3 029 1 276 Sewage treatment 946 14 240 2 430 Waste disposal 2 757 35 168 4 478 Soil and groundwater 435 2 402 392 Noise and vibrations 39 281
- Environmental consultant
1 555 7 691 649 Education, research and monitoring 261 1 307 98 Recycled material 1 933 38 910 11 856 Renewable energy sources 2 687 90 107 9 142 Heat / energy saving 901 13 692 6 187 Sustainable agriculture and fisheries 4 513 7 954 292 sustainable forest 102 6 403 29 Other (including ecotourism) 177 1 210
- TOTALT
16 434 222 393 37 061
Figure 4 Sales and exports in million SEK in environmental sector 2013, SCB 2014
The Swedish environmental sector
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15 100 200 300 400 500 600 700 800 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Wind energy Solar thermal Solar photovoltaic (PV) Solar thermal-PV hybrids Geotermal Marine energy (excluding tidal) Hydro energy - tidal, stream or damless Hydro energy - conventional
Granted renewable energy patents, OECD (2014).
Sector Percentage in the biggest subclass Biofuels 37 % Geothermal 38 % Hydroelectri 73 % Hydroogen and Fuel cells 77 % Solar 66 % Tidal 84 % Waste to energy 51 % Vågkraft 92 % Wind 96 % Other 93 %
Source: Correspondentens with Peter Keefe Patent Examiner Patent Informatics Analyst. UK Patent office.
Output: patents
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Total number of renewable energy patents per country ( the paper covers per capita)
100 200 300 400 500 600 700 800 Austria Belgium Denmark Finland France Germany Hungary Italy Netherlands Portugal Spain Sweden United Kingdom
Figur 1 Total number of renewable patents, by country. Source OECD (2014)
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The number of renewable energy patents taken at the EPO by the Swedish and Danish innovators.
Data from the European Patent Office (EPO, 2014).
50 100 150 200 250 199019911992199319941995199619971998199920002001200220032004200520062007200820092010
Sweden Denmark
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The number of renewable energy patents taken at the EPO
100 200 300 400 500 600 700 800
Germany France United Kingdom The number of renewable energy patents taken at the EPO. Data from the European Patent Office (EPO, 2014).
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Patents in each category, wind, solar and biofuel. Sweden
5 10 15 20 25 Vindenergi Sol Biobränsle
EPO, 2014
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Patents in Geothermal, wave/hydro, tidal/dams conventional waterpower. Sweden
1 2 3 4 5 6 7 8 Geotermisk Havsburen, vågenergi exkluderad Tidvatten och dammar Konventionell vattenkraft
EPO, 2014
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Tillväxtanalys (2014)
Private and public VC funds investments in cleantech companies 2007-2013
100 200 300 400 500 600 700 2007 2008 2009 2010 2011 2012 2013 Milion SEK
Finance from capital funds, totalt
Private Public
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Public VC funds investments in cleantech companies 2007-2013, by development stage
50 100 150 200 250 300 350 400 450 2007 2008 2009 2010 2011 2012 2013 Milionr SEK
Seed Product development Introduction Expansion Tillväxtanalys (2014)
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Public VC funds investments in cleantech companies 2007-2013, by development stage
10 20 30 40 50 60 70 80 2007 2008 2009 2010 2011 2012 2013 Milion SEK
Seed Product development Introduction Expansion Tillväxtanalys (2014)
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5 10 15 20 Förnybar energi, dollar per capita 1990 1995 2000 2005 2010 Year Danmark Finland Norge Sverige
Money in the state budget on renewable energy, per capita. OECD, 2014.
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International ranking
General innovation drivers Cleantech-specific innovation drivers Evidence
- f
emerging cleantech innovation drivers Evidence
- f
commercialised cleantech innovation 1 17 4 9
Tabell 4 Cleantech group och WWF´s (2014) ranking av länder, Sveriges placeringar.
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Strenghts
Opportunity – Sweden is ranked high current climate for innovation: The Cleantech Group and WWF (2014) rankings placed Sweden as the country in the world where the general conditions for the taking up and pursuit of innovative start-ups are the best. Fast-growing industry - the Swedish environmental energy industry has grown rapidly (in percentage) in all categories studied. Sympathetic population and politicians: The Swedish population and politicians are generally in favor of supporting the renewable Energy, with various policy measures.
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Weakness
Lack of capital - Access to capital is insufficient (could be better). Small critical mass - absorbing technology: In order to absorb technology human capital is needed, not only in general but specific technology. Lack of industry technology clusters - If the Swedish environmental energy sector fails to grow and reach the critical mass, there is a risk that the industry is stagnating.
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Weakness 2
- Uncertain political environment: Companies need a good business
environmen,t but also stability. Environmental Energy investments are
- ften capital-intensive. An investor will be less willing to invest if there
is a risk that policies introduced removed.
- Business angels do not understand the industry: As angel
investors not only contribute capital to the company, but also its expertise, commitment and contacts, it is important for most business angels that they understand the industry to invest in. This means that there are fewer potential angels even if the capital is available.
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Conclusion
- Relatively few inventions and innovations are made (though rising in
recent years. A problem in the sector is that the number of businesses are few and geographically dispersed across the country, which impair cluster formation. The Swedish capital market for green energy companies is limited. The number of business angels are also small, as the experience in the relatively new industry is limited
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