A deregulated European electricity market, would in the long run, mean uniform prices for similar customers. Hence, companies in Sweden must be as competitive as other industries in continental Europe in their electricity use.

Studies of two comparable car plants within the Volvo Corporation, the Gent plant in Belgium and the Torslanda plant in Sweden, show that the electric energy usage per car produced is twice as high in Torslanda. The main reason is different price levels. The price in Torslanda is 50% lower, which means that the electricity costs are about the same for both plants. Explanations other than the price have been examined and rejected.

The electricity monitoring and controlling system in Gent is more sophisticated and enables a more efficient electricity use. A load management program for the electricity demand at the Gent plant is active throughout the year. No such program exists in Torslanda. Electric resistant heating is quite common in Torslanda, while it does not exist in Gent. Almost all installation processes use more electricity in Torslanda. The electricity use during non-working hours is significantly higher in Torslanda compared with Gent. The study shows that there is a greater awareness of electricity costs in Gent.

Based on the experiences from Volvo and presented measures, a method has been developed to be used as a guide when searching for system imperfections within Swedish industrial energy systems facing a deregulated European electricity market. Computerized optimization models of the energy systems have been developed to study the cost-effectiveness of identified efficiency measures.

The transition of the Torslanda plant to a more efficient state has already started. The concepts and results of the study were adapted at an early stage and the paint shop in Torslanda was chosen for implementing the recent gains in new knowledge. Also, in order to spread and implement the results from the present study to all plants in Sweden, a group named 'El50' has been established within the Volvo Corporation. The objective is to decrease the electricity usage by 50% or to thesame level as in continental plants.