Saturday, June 11, 2016

Energy deal done – nuclear tax will be abolished – Swedish Dagbladet

photo: Henrik Montgomery / TT

When energy Minister Ibrahim Baylan (S) came in to introduce energy deal he hugged about opposition parties’ representatives. However, it is difficult to believe that talks on Sweden’s future energy policy has been cordial. The Liberals recently left the negotiations and the deal presented ten days of the promised deadline.

– This day is historic, said Green Party’s energy policy spokesperson Lise Nordin.

Behind the deal is now except government Christian Democrats, the Centre Party and the Conservatives.

– this is obviously a give and take, said Energy Minister Ibrahim Baylan (S).

When the parties various spokespersons had to give its view on the deal, they stressed all the different things and it became clear what has been contention. Green Party Lise Nordin highlighted that all parties in the deal now agrees that the state should not pay for nuclear decommissioning and disposal. The settlement was also an increased financial liability for nuclear accidents. Both points are likely carrots to the Green Party would go along with the crucial issue of energy talks – to remove the tax on nuclear power.

More specifically deal to tax on nuclear power from next year gradually phased out over two years – or “out avec class” as the Moderate Lars Hjälmered (M) wanted to describe it to his party’s key decision.

the Moderates and the Christian Democrats have pushed hard to effect the tax be removed and nuclear power “saved”. A property tax on hydro lowered and simultaneously extended subsidies to wind power. The extended support for renewables has been an important issue for the Centre Party, but also the contentious issue that made the Liberals withdrew. Liberals argue that subsidies for increasing electricity generation pushing down the already low price of electricity and pushes the viability of other energy sources.

The agreement also states that permission can be given for another ten nuclear reactors. At the same time stood parties behind the goal of 100 percent renewable electricity by 2040. Christian Democrat Penilla Gunther wanted but would rather call it a “vision”.

On the question of how a longer survival for nuclear power merges with the target of 100 percent renewably 2040, replied Ibrahim Baylan:

– this is a classic Swedish, traditional compromise.

Before the deal had energy giant Vattenfall’s CEO Magnus Hall set an ultimatum. The nuclear tax will be removed – otherwise shut all reactors in 2020. He is pleased with today’s ruling but does not exclude other closed reactors.

– It had always been able to wish for it to go even faster, but this provides predictability . Now the tax will disappear even if it takes a year extra compared to what we wanted, he told SvD.

So far, four Swedish nuclear reactors been told to shut down prematurely. Although the settlement does not exclude Magnus Hall that more reactors may be closed prematurely.

– We must now watch and evaluate. However, this tax has blocked the whole process.

There is therefore some uncertainty about existing reactors, but Magnus Hall is clearer regarding the reckoning decision to authorize new ones.

– It’s more a suggestion that nuclear power is part of the energy mix in the future, but we believe in a completely renewable system and new reactors is not currently a topical issue.

the last three years, the state has received between 3.7 and 4 billion per year in tax effect.

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