Swedish Energy Companies to Refurbish Existing Hydroelectric Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--Swedish energy companies have announced plans to augment existing hydropower plants in the country. State-controlled energy producer and transmission system operator Vattenfall AB (Stockholm, Sweden) is expected to spend 1.5 billion euros ($2 billion) on refurbishment of its hydroelectric plants through 2023. Finnish energy firm Fortum Oyj (HEL:FUM1V) (Espoo, Finland), which has a strong presence in Sweden, is likely to invest 50 million euros ($68.7 million) annually to improve the efficiency of its hydropower projects in the country. E.ON AG (OTC:EONGY) (Dusseldorf, Germany) has also announced plans to spend 590,000 euros ($810,000) over the next five years to refurbish hydropower facilities in Sweden.

The majority of the investments will be made on hydropower projects that were built in the 1940s through the 1960s. These power plants have reached the end of their operating lifespan, and augmentation of equipment, parts and machinery has become critical for optimal operations.

Vattenfall's power-generating facilities cater to 50% of Sweden's demand for power. The company, which was established in 1909, relies on hydro and nuclear power to meet domestic demand in Sweden. The company's transmission network in Sweden provides electricity and heating services to about 900,000 customers. Vattenfall has a strong presence in the Nordic region and rest of Europe, accounting for 20% of electricity generated in the Nordic countries. Vattenfall owns and operates the 939-megawatt (MW) Harspranget hydroelectric plant. Built in 1919, the project is located 30 kilometers north of Jokkmokk and addresses about 10% of the national energy demand. The facility is the biggest hydropower plant in the country. Vattenfall owns and operates 15 hydroelectric plants along the 460-kilometer Lulealv River in northern Sweden.

Fortum is one of Europe's leading energy utilities and provides electricity and heating services to Russia, Poland, and the Baltic and Nordic nations. Hydropower accounts for about one-third of Fortum's annual power generation. In Sweden and Finland, the company operates a total of 260 hydropower projects. Some of Fortum's largest hydropower plants in Sweden are located on the Indalsalven, Ljusnan and Dalalven rivers. In Finland, 40 hydroelectric projects operated by Fortum are situated on Vuoksi waterways and Oulujoki River.

E.ON operates and maintains several hydropower plants in Sweden through its local subsidiary E.ON Sverige (Malmo, Sweden). The company provides electricity and heating services to about 1 million customers in the country.

For the last century, hydroelectricity has been the primary source of power generation in Sweden. The country's geographical location, topography and climate have helped transform hydropower into a viable, environmentally friendly and popular source for energy generation, addressing more than 50% of the country's energy needs.

According to the 'Statistical Review of World Energy - 2009', published by BP plc (NYSE:BP) (London, England), Sweden's installed hydropower generating capacity was about 16,200 MW in 2008. A report published by VTT Technical Research Centre of Finland (Espoo) indicates that Sweden's long-term power consumption is expected to reach 152.1 terawatt-hours by 2015 and 157 terawatt-hours by 2025. Consumption is expected to be spurred by growth in demand from the transportation, district heating, industry and household segments.

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