Sweden

SW-7:Technology Procurement

Policy Description

The technology procurement programme is a bidding process to stimulate and accelerate the development of new technologies. First carried out in 1990, the Swedish Energy Agency oversees and co-funds, with other governmental or private procurers, investments in new and more efficient technology.

Description

 

The technology procurement programme is a bidding process to stimulate and accelerate the development of new technologies. First carried out in 1990, the Swedish Energy Agency oversees and co-funds, with other governmental or private procurers, investments in new and more efficient technology [1].

Technology procurement aims to develop new products, systems or processes and initiate a market shift towards new energy efficient technologies. The programme defines new buyer requirements, which are established by a group of purchasers (see below) who are more demanding than products currently on the market.   These new buyer requirements then help to accelerate the introduction, adoption and use of new technologies into the wider marketplace.

A typical technology procurement process consists of the following phases:

  • Developing a feasibility study, consisting of a market assessment and assessing the feasibility of improvements;
  • Assembling a purchaser group, consisting of potential purchasers of the new technology (*1);
  • Drafting performance specifications for the new technology;
  • Requesting tenders by potential producers of the technology;
  • Evaluating results;
  • Disseminating results and further development of the technology.

The Swedish Energy Agency plays a coordinating role in the procurement process, can co-fund the process and deliver valuable input by experience or networking. The purchaser group, the technology developers and/or any other investors involved provide co-fund the remainder. Since the 1990s about 60 different technology procurements have been initiated, all of the projects have been listed by the Swedish Energy Agency (*2).

In 2011, the industrial sector began carrying out technology procurement for improving the energy efficiency of cooling water systems in the processing industry [1]. In 2010 the Swedish Energy Agency agreed to co-fund the procurement of electrical vehicles together with Stockholm city and Vattenfall (an energy supplier). In this case the Swedish Energy Agency funded SEK 62 million [2].. Another example is the tender of an automated control system for the energy consumption of foundries in 1994 [3].  To date, most of the co-funding from the Swedish Energy Agency has been allocated to building procurement, and only a handful to industrial procurement

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Economic, Incentives & Subsidies, Information & Outreach

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 1990

Policy Linkages

Complements Ecodesign Directive Effort Defining
Complements Environmental Taxes on Fuels Supporting Measure

Agencies Responsible

Swedish Energy Agency

Primary Objective: Energy

Objective

­Accelerating technology development. Technology procurement is intended to work within normal market forces and limitations, with the aim of creating long-term results for the industry.

Target Group

Manufacturers and consumers of energy consuming equipment.

Driver of energy consumption or emissions affected by policy: Rate of change, technology implementation rate

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

N/A

Quantitative Target? no

Progress Monitored? no

Verification Required? no

Enforced? no

Requirements on the Target Group

Projects are mainly performed in procurement groups (groups of actors initiating and managing the procurement process). Competition among the actors leads to ambitious projects and agreed obligations on buying a certain amount of the ‘winning’ products resulting from the procurement process. 

Support by Government

  • Co-funding (total budget not available)
  • Expert input to the process
  • Stakeholder management

Implementation Toolbox

N/A

Complexity of Implementation

Government

Assessing requests on feasibility and participation in the process lead to low complexity.

Target Group

Tender or technology requires a set of requirements, which is common for companies.

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions N/A N/A
Estimated costs/benefits for industry N/A Since the 1990s, about 60 different technology procurement projects have been initiated and co-financed.
Estimated cost for government N/A N/A
Other Benefits
General Benefits N/A
Specific Benefits N/A

References & Footnotes

References

[1] Swedish Energy Agency (2011) Energy in Sweden 2011. Available at http://webbshop.cm.se/System/TemplateView.aspx?p=Energimyndigheten&view=default&id=3928fa664fb74c2f9b6c2e214c274698

[2] City of Stockholm and Vattenfall start the largest electric vehicle procurement (Elbilsupphandling) (2012). Available at http://www.elbilsupphandling.se/2010/05/stockholms-stad-och-vattenfall-startar-sveriges-storsta-elbilsupphandling/

[3] Technology Procurement Foundries http://energimyndigheten.se/PageFiles/18101/%C3%96vervakningssystem%20f%C3%B6r%20gjuterier%20Pressrelease%20803528.pdf

Footnotes

(*1) The group consists of potential purchasers, for example, a group of building owners that aimed at improving the building’s energy efficiency. This assembling is not structured or necessarily initiated by a government agency. Any (industrial) companies can discuss with SEA on starting a technology procurement process.

(*2) List of Technology Procurements (Teknikupphandlingar) http://energimyndigheten.se/sv/Teknikupphandlingar/