At present, Sweden derives nearby all its electricity from hydro and nuclear power, with split of around 50% between the two. The political intention in Sweden is to start to phase out the nuclear capacity, leaving a large deficit in the electricity supply.

The conditions in Sweden could not be considered ideal for using photovoltaics with low insolation levels, an electricity consumption pattern, which does not match the availability of the solar resources, and an extensive grid system. Under the present circumstance, the complete replacement of the present nuclear capacity with PV is not realistic. This would require cost-effective seasonal storage, in the absence of which PV installations are limited to between 5 and 10 GWp. Significant cost reductions and up-scaling of current PV module production are also required for PV to have a large-scale future in Sweden. However, the phasing out of nuclear has given PV an opening into this unlikely market.

The Swedish electricity industry is now engaged in a PV systems project. The overall motivation for the participation of these companies is to build up in-house PV competence. The focus is on cost-effective utility applications such as sectionalising switches for distribution for power line pylons. Another issue with high priority is the environmental and life cycle analysis of PV systems.

Although the PV industry in Sweden is limited, researchers have followed international developments in PV for many years. The country boasts one of the leading international institutions carrying out research into thin film CIS solar cells. Political interest in PV has also increased recently, which has stimulated further research programmes, including a unit working with nano structure dye sensitized solar cells. The research in this area has already resulted in industrial development projects.

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