The world is in urgent need to find alternative, cleaner ways of powering and heating homes, industries and cities. Vattenfall is working to speed up and enable a climate-smart life.
The following key market trends describe the transformation of the energy industry:
From fossil fuels to renewables
A transformation from fossil fuels to renewables has been ongoing for many years, driven by climate change and growing environmental and sustainability demands from customers and society as well as greatly reduced costs of wind and solar power.
- Lean operations and digitalisation
As a combined effect of lower coal and gas prices, weak demand development, structural oversupply, strong growth in renewables and rapid technological development, wholesale electricity prices in our markets have more than halved over the past five years, and any recovery will at best come five to ten years in the future.
From large-scale to more decentralised generation
Technological developments and the market's adaptation to small-scale generation have rapidly reduced the costs for consumers wishing to generate their own electricity or heat. Both households and industry are increasingly installing roof-mounted solar panels, small wind turbines and micro-CHPs.
- Electrification of everything
Roughly 70% of CO2 emissions in Sweden derive from heating buildings, transportation and industry. Electrification of these sectors is enabling fossil fuels to be replaced by renewable, climate-neutral energy.
Our strategic objectives
Our climate and sustainability objectives, alongside our owner's requirement that we generate a market rate of return, are the basis of our strategy and our strategic targets. Our goal to be climate-neutral by 2050 – and by 2030 in the Nordic countries – entails a stepwise phase-out of fossil fuels. Through a strong commitment to efficient operations and engaged employees, we will focus on developing customer-centric energy solutions and delivering a financial return in line with our owner's expectations. To fulfil our purpose – to "Power Climate Smarter Living" – our overarching strategy for the years ahead is based on four strategic objectives:
- Leading towards Sustainable Consumption
- Leading towards Sustainable Production
- High Performing Operations
- Empowered and Engaged People
Against this background, in 2016 we accelerated the implementation of our strategy and took concrete actions to ensure that we will achieve our strategic objectives.
The four strategic objectives