As Sweden’s biggest source of renewable energy, hydro power currently accounts for about 40 per cent of the overall energy mix. We have a relatively plentiful supply of water, and large reservoirs allow the water to be stored and used for production at times of peak demand. Hydro power converts the potential energy of rainwater and meltwater into electricity. In total, there are over 2 000 hydro power stations in Sweden. Of these, just over 200 are larger, with an output of 10 MW or more.
Building a hydro power station requires a substantial initial investment, but both the technical and the economic lifetime of the station are long. Hydro power has no fuel costs and Sweden has a plentiful and stable supply of water. What is more, hydro power can be controlled in response to demand. This is what makes hydro power a relatively safe investment.