Useful information

Electricity certificates

The Norwegian-Swedish electricity certificate market was established January 1st 2012. Norway and Sweden have a common goal of increasing the renewable electricity production by a total of 26.4 TWh from 2012 to the end of 2020.

How the electricity certificate system works
Power producers are issued electricity certificates corresponding to the production from power plants approved by NVE and the Swedish Energy Agency. Eligible new power plants receive one electricity certificate per megawatt-hour (MWh) of electricity generated.
Who is required to buy electricity certificates in Norway?
Electricity suppliers and some end-users of electricity are obligated by law to buy electricity certificates corresponding to a certain proportion (quota) of their electricity sales or usage. This creates the demand for electricity certificates in the market. Electricity-intensive industries have an electricity certificate cost only for the proportion of the electricity which is not used in the manufacturing process. Each year, the market participants with an obligation to buy electricity certificates must redeem electricity certificates in order to fulfill their obligation.
Who pays for the electricity certificate system?
The system is financed by electricity end-users, as the costs of certificates are added to the electricity bill.  In this way, electricity end-users in Sweden and Norway contribute to paying for the increase in renewable electricity production.

Example - Certificate costs for an ordinary family
In 2013, power consumers in Norway had to pay for electricity certificates corresponding to 4.9 percent of their electricity consumption. The actual additional costs are determined by the electricity certificate price, which will vary according to supply and demand. If the electricity certificate price is NOK 200, a family using 20,000 kWh electricity a year will incur an additional cost of NOK 245 (including VAT) a year. When the quota curve is at its peak in 2020, the same family will have to pay for electricity certificates for 18.3 percent of their electricity consumption. With unchanged consumption and a certificate price of NOK 200, the additional costs will amount to NOK 915 (including VAT).
In 2015 we expect the cost for a family to be somewhere between NOK 378 and NOK 454 (including VAT) when using 20,000 kWh electricity a year.


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