The Swedish heating market, as a whole, caters to a net heat demand of around 100 TWh per year, whereof district heating covers around 50%. It dominates the business to business segment with over 90% of the market share for multi dwelling buildings and around 80% of the market share for non-residential buildings.
The graph below demonstrates that, in 2015, district heating was the dominant heating supply with a share of 51%. Secondary on the graph is electricity, which represents the extensive usage of heat pumps as the heating solution in single family homes.
A slight expansion of district heating might be possible in the coming years with the important factor being the growth rate of the population. However, the currently low electricity prices disfavour district heating and sharpens the competition in the heating market especially in relation to electricity-based heat pumps. The energy requirements in Swedish building code favours individual heating solutions and steers towards the use of electricity-based heat pumps.
Combined heat and power (CHP) contributed to 45% of district heating generation and 8.5% of the total national electricity production in 2015. Renewables, including wood pellets, wood chips, biomass and firewood, cover the largest share as a fuel for CHP with a share of 66%, followed by waste with 18%.
The district cooling network in Sweden has been growing over the last years and reached a trench length of 544 km and total sales of around 900 MWh in 2015. The main driver is customer demand and especially owners of commercial buildings are increasingly requesting both heating and cooling services.