- Aug 1, 2019 11:00 am GMT
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Sweden's introduction today of a tax aimed at phasing out the nation's last remaining coal and gas plants to curb global warming comes with an unintended consequence for some of its biggest cities.
Hiking threefold a levy on fossil fuels used at local power plants will make such facilities unprofitable, and utilities from Stockholm Exergi AB to E.ON SE have said they will halt or cut power production.
The move means that grids in the capital and Malmö won't be able to hook up new facilities including homes, transport links and factories. While Sweden doesn't have a shortage of power, there aren't enough cables to ship it to the biggest cities.
"We don't have a problem with generating enough power in Sweden, we have a problem with getting it to where it's needed," Magnus Hall, chief executive officer of state-owned utility Vattenfall AB, said in an interview. "This law was added with short notice, and I am not sure a proper analysis of it was made."
Interesting to see the effects of the fossil fuel tax that have the intended effect of phasing out fossil fuel plants & had allotted for enough generation to still survive, but where T&D now becomes the problem as a result.