The Norwegian and Swedish Governments have signed an agreement concerning the principles for establishing a common market for electricity certificates (Green certificates) in Norway and Sweden.
The Norwegian and Swedish Governments have signed an agreement concerning the principles for establishing a common market for electricity certificates (Green certificates) in Norway and Sweden.
Green certificates will be a market-based instrument for promoting the development of alternative energy. The Swedish have had a market for green certificates since 2003, which has functioned as a key instrument in their energy and climate policy. The purpose of such certificates is to make new projects for the production of wind, bio-, wave and hydroelectric energy profitable as all energy purchasers are obliged to buy a certain amount of green certificates from the producers of the renewable energy.
The Norwegian government writes the following about green certificates on its website:
- A market for electricity certificates, or green certificates, will work such that the producers of renewable electricity will be awarded green certificates equivalent to the amount of energy that they produce.
- In addition, the authorities can require that all who purchase power (energy) must also purchase a certain amount of green certificates.
- A demand for the certificates will then arise creating a price. This will then provide an additional income to producers of renewable electricity.
- Purchase of certificates may also be voluntary. This will result in the price of certificates being dependent on individual preferences.
The green certificates will only be in place in the market from 1st January 2012. Until then, Enova will provide investment support for new projects to ensure a smooth transition to the introduction of the certificates.
The Norwegian and Swedish Governments have signed an agreement concerning the principles for establishing a common market fo
