65 Power distribution E.ON Sverige delivers electricity safely and reliably to about 1 million customer accounts in Sweden and Finland. Network in- frastructure in Northern Europe needs to be particularly robust in order to minimize outages caused by the frequent snow, ice, and strong winds. That's why E.ON Sverige is conducting a major, multi-year upgrade of its power distribution system in Sweden. The upgrade calls for 17,000 km of overhead lines to be replaced by underground cables or sturdier overhead lines. In 2009, an- other 3,250 km of lines were made more weather-resistant, leaving just 2,200 km before the project is complete. The upgrade has helped reduce weather-related outages by over 55 percent. Improved network reliability lowers operating costs and increases customer satisfaction. Heating District heating is common in Sweden. In Stockholm, for exam- ple, it heats 90 percent of residential buildings. Currently, well- established (and often municipally owned) incumbents dominate the market. E.ON Sverige, which provides district heating to 38,000 customer accounts and is Sweden's leading investor-owned player, is pushing for more competition. It advocates nondis- criminatory third-party access to Sweden's heating network, particularly in big urban areas like Stockholm. Greater competition will create a more efficient, lower-cost heating market for con- sumers and growth opportunities for our Nordic heating business. Biogas Locally produced, climate-neutral biogas can help cut carbon emissions and reduce dependence on imported fossil fuels. E.ON Sverige, which operates 15 biogas production plants, is working with E.ON Climate & Renewables to develop our biogas and biomethane business in Sweden. A new biomethane plant opened in Falkenberg in March 2009. Its annual output has the energy equivalent of 4 million liters of gasoline. Growth prospects for biofuels are particularly good in the vehicle-fuel segment. E.ON Sverige operates 30 of Sweden's 100 fueling stations for biomethane vehicles. In 2009, it entered into a cooperative arrangement with OKQ8, a major gas-station chain, to build Sweden's largest biomethane refueling network. You'll find E.ON's consolidated financial statements and related commentary in our Financial Report. Want to know more about Nordic? eon.se Nordic Market Unit Our Structure E.ON Sverige promotes sustainable cities Not long ago, Västra Hamnen (West Harbor) was a dreary industrial wasteland of rusting cranes and dilapidated docks. Today this harbor district in Malmö is a shining example of innovative, sustainable urban development. Its electricity and heat come almost entirely from renewable sources (wind, solar, biomass, and a large groundwater heat pump). Even its refuse is put to use: city buses run on biogas produced at the local landfill. E.ON Sverige is an active partner in Västra Hamnen and has invested a total of 7 million. The project shows how companies and cities can work together to achieve what were formerly considered mutually contradictory objectives: an ex- panding economy and a shrinking carbon footprint. There's a growing list of cities implementing the Malmö paradigm, called Sustainable City, with help from E.ON Sverige. They include Mora and Norrköping (Sweden) as well as Copenhagen (Denmark), whose North Harbor is being transformed into a sustainable residential area for 40,000 people.