An increase in demand for Nordic electricity certificates of approximately 7TWh per year between 2016 and 2019 prompted a change in quotas for Norway and Sweden.
The Swedish and Norwegian energy agencies announced a change in quotas for the Nordic elcertificate market earlier this week as part of a two-year review of the joint renewable energy scheme between the two countries.
Speculation about a change in quotas had sparked a bullish trend earlier in January ( see sister publication ECEM 22 January 2014 ).
According to ICIS assessments the March ‘16 annual certificate closed at Swedish Krona (Skr) 198 (€22.42) on 22 January, an SKr16 premium to the previous month.
A slight downward revision by 1TWh was recommended for Norway. This was due to higher-than-expected electricity consumption and less generation from power plants that began to operate before 2012, according to Per Sanderud, head of the Norwegian Water Resources and Energy Directorate.
Meanwhile an upwards adjustment of 8TWh will be implemented for Sweden, where new capacity, agreed upon before the introduction of the certificate scheme, has been installed at a faster rate than anticipated. In addition, electricity consumption had been lower than expected.
The changes are set to be implemented on 1 January 2016, but market participants will have the opportunity to comment beforehand.
The electricity certificate scheme is intended to aid the Swedish and Norwegian build-up of 26.4TWh of renewable energy generation by 2020. The overall targets outlined in the support scheme are to remain unchanged. “The market is working and there are enough potential projects to reach the goal, but a condition is that we adjust the quotas so that the projects needed to achieve the common goal can be realised,” said Erik Brandsma, director general of Energimyndigheten, the Swedish energy agency. Sonja Caymaz