Description
The Swedish Electricity Certificate System is a market-driven initiative to boost renewable energy production. Producers earn certificates for every megawatt-hour of renewable electricity they generate, which can be sold for additional revenue. Electricity suppliers and users must purchase certificates to meet annual quota obligations, driving demand and fostering investment in clean energy. This system ensures everyone, from producers to consumers, contributes to the growth of sustainable energy. Since 1 January 2012, Sweden and Norway have a united market for electricity certificates.
level of support
National
type of funding
Subsidies
Funding amount
Electricity Certificates are traded on an open market, with the price being determined by supply and demand.
Eligibility criteria
Open to producers of electricity from renewable sources in Sweden
Application Process and Timeline
The Swedish Electricity Certificate System, established to promote renewable electricity production, has undergone significant changes affecting new projects. As of January 1, 2022, facilities commissioned after December 31, 2021, are no longer eligible for electricity certificates. This decision was made to prevent additional costs and avoid distorting competition in the market by supporting commercially viable production.
Evidence Of Success
The Swedish Electricity Certificate System has significantly advanced renewable energy production since its inception in 2003.
Expert Opinion
The Swedish Electricity Certificate System offers a unique market-based framework that could provide substantial benefits for energy communities aiming to expand renewable energy projects. By integrating this scheme into their operations, energy communities can strengthen their financial sustainability, promote local renewable energy production, and enhance their role in the energy transition.
