Norway and Sweden agree on a common market for green certificates
The governments of Sweden and Norway today agreed on a significant expansion of renewable energy projects until 2020. A common market for green certificates is to be in place by 1 January 2012.
Norwegian Minister of Petroleum and Energy, Mr. Terje Riis-Johansen and Swedish minister for Enterprise and Energy, Mrs. Maud Olofsson, today signed a protocol concluding the discussions on a system for green certificates that started last autumn. The new system is expected to generate 26,4 TWh by 2020, each country financing 13,2 TWh. The total power output equals eight gas-fired power plants.
-This is a great day. I am very pleased that we have now signed the protocol with Sweden and bring to fruition the plans for a common market for green certificates. In the period up to 2020 we will see a significant expansion of renewable energy projects in both Sweden and Norway. I am proud to say that the cooperation we have now established makes our two countries vanguard nations in this field, says Norwegian Minister of Petroleum and Energy, Mr. Terje Riis-Johansen.
Sweden has had a market for green certificates since 1 May 2003. A common system between Sweden and Norway based on the swedish model means that the market expands, both in terms of volume and the number of actors, compared to a national market. This is expected to result in a more competitive market, as well as more stable energy prices.
The fact that investments will be made where the conditions are optimal, means that the goal of increased production of renewable energy can be met in a more cost efficient manner.
The two governments have cooperated in reviewing the production opportunities in Sweden and Norway. They agree that the conditions for developing wind power are favourable in both countries. In addition, the new system will stimulate development of more hydro power in Norway and more bio based power Sweden.
The point of reference for a common market for green certificates is that the system is neutral regarding renewable technologies, and that the two countries share the same level of ambition regarding production increases from the date when the common market is put into effect. In order to secure maximum benefits for both countries, the development of power grids between Sweden and Norway will be an important condition. Implementing the renewable energy directive is an important condition for establishing a common market for green certificates. Norway is working on a progress plan accordingly.
Source: Ministry of Petroleum and Energy