Country:Sweden
Year:2003 (last updated 2013)
Policy status:In Force
Jurisdiction:National
Date Effective:2003 (last updated 2013)
Date Amended:

2007;

2011 (Nov 30th);

2012 (Jan 1st);

2013 (Jan 1st and April 1st)

Policy Type:Economic Instruments>Market-based instruments>Green certificates
Agency:Swedish Energy Agency
URL:http://www.energimyndigheten.se/en/Sustainability/The-electricity-certificate-system/
URL:http://www.energimyndigheten.se/en/About-us/Press-/Press-releases/Kontrollstation-2015--suggests-adjustments-to-the-electricity-certificate-system/
Legal References:Electricity Certificates Act (Lag (2003:113) om elcertifikat)
Evaluation:In February 2014, a checkpoint report was released. It investigated the progress of the shared certificates system with Norway, and suggested certain adjustments in the current regulation in order to be able to reach the common goal set for 2020. The suggestions stated in the report include that the quota obligations should be increased by 8 TWh per year between 2016 and 2019. This is mainly due to the expansion rate of renewable energy which has been faster than expected (i.e. the supply of certificated electricity was bigger than expected, in relation to the demand), and due to the reduced electricity usage with quota obligation. Other recommendations in the report include improved information to the market's actors. (Press release in English: http://www.energimyndigheten.se/en/About-us/Press-/Press-releases/Kontrollstation-2015--suggests-adjustments-to-the-electricity-certificate-system/)
Penalty:Financial penalty in case certificate obligation is missed
Renewable Energy Description:

The electricity certificate is a market-based support system for renewable electricity production. The system came into force on 1 May 2003 and is intended to increase the production of renewable electricity and to make the production more cost-efficient.

For each MWh produced from renewable resources, electricity producers have the opportunity to be granted an electricity certificate by the Government. The certificates can be sold on an open market to electricity consumers - mostly via electricity suppliers - who have to fulfil a quota obligation of certificated electricity. The quota is set in proportion to total electricity use. Energy-intensive industry is exempt from the requirement. 

The demand is thus regulated by means of the quota, while the supply is unregulated. The price is determined freely on the market for certificates.  Only new power plants or plants which have undergone recent significant changes are entitled to certificates.

The renewable energy sources include wind, solar, wave, geothermal certain hydro, certain biofuels, and peat in CHP plants. 

The objective of the Swedish electricity certificate system is to increase the production of renewable electricity with 25 TWh by year 2020 compared to year 2002. Between 2002 and 2011, the production of renewable electricity increased by approx 13 TWh, principally by means of biopower and wind power.

Since 1 January 2012, Sweden and Norway share a common electricity certificates market, implying that certificates may be traded between borders. The objective of the common certificates market is to increase the production of renewable electricity with 26,4 TWh by 2020, compared to 2012. This corresponds to approx 10 % of total electricity production in both countries. For consumers who fail to buy enough certificates, there is a financial penalty.

Climate Change Description:

The electricity certificate is a market-based support system for renewable electricity production. The system came into force on 1 May 2003 and is intended to increase the production of renewable electricity and to make the production more cost-efficient.

For each MWh produced from renewable resources, electricity producers have the opportunity to be granted an electricity certificate by the Government. The certificates can be sold on an open market to electricity consumers - mostly via electricity suppliers - who have to fulfil a quota obligation of certificated electricity. The quota is set in proportion to total electricity use. Energy-intensive industry is exempt from the requirement.

The demand is thus regulated by means of the quota, while the supply is unregulated. The price is determined freely on the market for certificates.  Only new power plants or plants which have undergone recent significant changes are entitled to certificates.

The renewable energy sources include wind, solar, wave, geothermal certain hydro, certain biofuels, and peat in CHP plants. 

The objective of the Swedish electricity certificate system is to increase the production of renewable electricity with 25 TWh by year 2020 compared to year 2002. Between 2002 and 2011, the production of renewable electricity increased by approx 13 TWh, principally by means of biopower and wind power.

Since 1 January 2012, Sweden and Norway share a common electricity certificates market, implying that certificates may be traded between borders. The objective of the common certificates market is to increase the production of renewable electricity with 26,4 TWh by 2020, compared to 2012. This corresponds to approx 10 % of total electricity production in both countries. For consumers who fail to buy enough certificates, there is a financial penalty.

Amended:

The initial objective of the electricity certificate system was to increase the production of electricity from renewable energy sources by 10 TWh by 2010, relative to the corresponding production in 2002. The system is extended until 2030.   

Historical Quota levels both for Norway and Sweden:

Quota levels

 

 

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Sweden

17.0%

17.9%

17.0%

17.9%

13.5%

14.2%

14.3%

14.4%

15.2%

16.8%

Norway

-

-

-

3%

4.9%

6.9%

8.8%

10.8%

12.7%

14.6%

Amended:

The initial objective of the electricity certificate system was to increase the production of electricity from renewable energy sources by 10 TWh by 2010, relative to the corresponding production in 2002. The system is extended until 2030.   

Historical Quota levels both for Norway and Sweden:

Quota levels

 

 

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Sweden

17.0%

17.9%

17.0%

17.9%

13.5%

14.2%

14.3%

14.4%

15.2%

16.8%

Norway

-

-

-

3%

4.9%

6.9%

8.8%

10.8%

12.7%

14.6%

Related policies:Norway-Sweden Green Certificate Scheme for electricity production

Last modified: Tue, 11 Mar 2014 19:48:06 CET