Reducing energy use in buildings is essential to decrease the environmental impact. Outside Gothenburg in Sweden, 20 terrace houses were built according to the passive house standard and completed in 2001. The goal was to show that it is possible to build passive houses in a Scandinavian climate with very low energy use and to normal costs. The houses are the result of a project including research, design, construction, monitoring and evaluation. The passive house standard means that the space heating peak load should not exceed 10 W/m(2) living area in order to use supply air heating. This requires low transmission and ventilation losses and the building envelope is therefore highly insulated and very airtight. A mechanical ventilation system with approximately 80% heat recovery is used. The electric resistance heating in the supply air is 900 W per living unit. Solar collectors on the roof provide 40% of the energy needed for the domestic hot water. The monitored delivered energy demand is 68 kWh/m(2) a. Energy simulations show that main differences between predicted and monitored energy performance concern the household electricity and the space heating demand. Total delivered energy is approximately 40% compared with normal standard in Sweden. (C) 2005 Elsevier B.V. All rights reserved.