Proposed termination of the Swedish electricity certificate system

Summary
The Swedish Government has, through the Ministry of Infrastructure, issued a memorandum which proposes a termination of the Swedish electricity certificate system.

Background
Since 2003, Sweden has an electricity certificate system which promotes the production of energy from renewable energy sources. Since 2012, Sweden has shared its electricity certificate market with Norway.

The generation of renewable energy has increased rapidly and the common goal of 46.4 TWh of renewable energy production is anticipated in the near future. The Swedish Government therefore proposes a cancellation date as early as 31 December 2021, for the system to be terminated in 2035 instead of termination in 2045 which was anticipated when the system was presented. The system will be terminated on the same dates in Norway. This means that no new plants for renewable electricity generation that have been put into operation after 31 December 2021 will be approved into the Swedish electricity certificate system.

The legislative process
The proposal has been sent out to relevant referral bodies for consideration. The next step in the process is for the amendments to be approved by the Swedish Parliament. The Government's ambition is for an agreement to be presented during fall of 2020.