Decreased energy use is crucial for achieving sustainable energy solutions. This paper presents current and possible future electricity use in Swedish industry. Non-heavy lines of business (e.g. food, vehicles) that use one-third of the electricity in Swedish industry are analysed in detail. Most electricity is used in the support processes pumping and ventilation, and manufacturing by decomposition. Energy conservation can take place through e.g. more efficient light fittings and switching off ventilation during night and weekends. By energy-carrier switching, electricity used for heat production is replaced by e.g. fuel. Taking technically possible demand-side measures in the whole lines of business, according to energy audits in a set of factories, means a 35% demand reduction. A systems analysis of power production, trade, demand and conservation was made using the MODEST energy system optimisation model, which uses linear programming and considers the time-dependent impact on demand for days, weeks and seasons. Electricity that is replaced by district heating from a combined heat and power (CHP) plant has a dual impact on the electricity system through reduced demand and increased electricity generation. Reduced electricity consumption and enhanced cogeneration in Sweden enables increased electricity export, which displaces coal-fired condensing plants in the European electricity market and helps to reduce European CO2 emissions. Within the European emission trading system, those electricity conservation measures should be taken that are more cost-efficient than other ways of reducing CO2 emissions. The demand-side measures turn net electricity imports into net export and reduce annual operation costs and net CO2 emissions due to covering Swedish electricity demand by 200 million euros and 6 Mtonne, respectively. With estimated electricity conservation in the whole of Swedish industry, net electricity exports would be larger and net CO2 emissions would be even smaller. (C) 2007 Elsevier Ltd. All rights reserved.