In order to contribute to knowledge on how-to expand bioenergy this paper examines an example of success from Sweden. The idea is to identify factors that can explain the difference between success and failure of bioenergy systems. In the aftermath of the oil crises in the 1970s, the local government in the town of Enkoping in Sweden was cautioned by the local Swedish military regiment to shift towards domestic energy supplies rather than imported fossil fuels. During the decades that followed the local energy companies developed a pioneering bioenergy system. There are 3 important conditions relevant, to explain the success: (1) the introduction of the carbon tax in Sweden provided market conditions making bioenergy sufficiently competitive with fossil fuels; (2) the know-how developed by the local energy companies through experimentation and collaboration with research institutions encouraged investments in local opportunities; and (3), the formation of partnerships in a regional network of actors, including private companies providing biofuels and technology, research institutions, and local government, helped to co-ordinate the development of the bioenergy system.