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The Swedish-NorwegianElectricity Certicate Market

A N N U A L R E P O R T 2 0 1 2


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ContentsPreface 3

The Nordic electricity market 4

Key gures for 2012 6

How the electricity certicate market works 7

Goal fullment 16

Issuing of electricity certicates 20

Cancellation of electricity certicates 22

Surplus 24

Price and trading 27

Progress review 30

Tables 32

Glossary 38


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PrefaceThe rst joint annual report from the Swedish Energy Agency and the Norwegian Water Resourcesand Energy Directorate (NVE) about the Swedish-Norwegian electricity certicate market has nowbeen completed. With this report, we wish to present a picture of the most important events and keygures for the electricity certicate market during 2012.

For further information about the electricity certicate system and the electricity certicate market,

please see the websites of either public authority.

Since 1 January 2012, Sweden and Norway have had a common market for electricity certicates.It is based on the Swedish electricity certicate market, which has been in existence since 2003.

The goal of the electricity certicate market is to increase the renewable electricity production inboth countries combined by 26.4 TWh by the end of 2020. Sweden and Norway are responsible for

nancing half of the increase each, but it is up to the market to decide where and when the newproduction is to take place.

In addition to information about fullment of the common goal, this report also includes asummary of approved production in the Swedish electricity certicate system up to the end of 2011and approved plants in the Norwegian transitional settlement.

The Agency and NVE are happy to receive feedback about the annual report. Please contact us ifyou wish to put forward your views on how to make next years report even better.

The project managers for the annual report were Johanna Nilsson at the Swedish Energy Agencyand Anton Jayanand Eliston at NVE.

Erik Brandsma,Director-GeneralSwedish Energy Agency

Per SanderudWater and Energy DirectorNorwegian Water Resources and Energy Directorate


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The Nordic electricity market 1The Nordic countries have a common, deregulated electricity market, where energy companiescan buy and sell electricity via the Nord Pool exchange. Electricity distribution via the electricitynetworks (national, regional and local grids) is controlled by monopolies. The trading in electricityinvolves producers who sell electricity via the electricity exchange (Nord Pool) to electricitytrading companies, who in turn sell the electricity to users. Alternatively, producers may sell theelectricity direct to users. The total price paid by the user includes tax as well as the cost of the

electricity. In addition to the sale of electricity, the producers costs and income are affected bythe EUs Emission Trading Scheme and the electricity certicate system.

Many energy companies and functions must cooperate efciently on the electricity market in orderto safely deliver electricity to users and in order to enable consumers to buy their electricity on amarket where free competition prevails.

The national grids are owned and managed by each countrys transmission system operator(TSO). They are Svenska Kraftnt in Sweden, Statnett in Norway, Energinet.dk in Denmark andFingrid in Finland.

Electricity producers can choose whether they wish to sell the electricity directly to major users,to electricity trading companies or to the electricity exchange. Most of the electricity produced issold via the electricity exchanges spot market.

Electricity trading companies purchase the electricity from the producers or from the electricityexchange, and sell it to electricity end users. The role as electricity retailer (electricity supplier)involves having commercial contacts with the end users.

The grid operators own the regional and local networks. They are responsible for ensuring theelectric energy is delivered to the users. The regional networks transport electricity from the natio-nal grid to the local networks, in some cases also to major users, such as large industrial companies.The local networks distribute the electricity to other electricity end users, such as households,ofces, industries, etc.

1) Source: Svenska kraftnt, Elmarknaden i Sverige och Svenska kraftnts roll (The Electricity Market in Sweden and the Role of Svenska Kraftnt),

ISBN 978-91-976721-0-8, May 2011


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Electricity end users, such as households and industries, use the electricity. Users normally haveboth an agreement with an electricity trading company to buy electricity and an agreement with an

electricity network company to be connected to its network. Users pay a network fee to theirelectricity network company for the connection and transfer of electricity.

The marketplace for trading in electricity - the Nordic electricity exchange Nord Pool Spot -offers standard agreements that make it easier for the market participants to do business with eachother. Nord Pool Spot has a spot market (physical trading) for the trade in electricity per hour up tothe day before delivery. Nasdaq OMX Commodities have a forward market (nancial trading) for

long-term trade, where the market participants can hedge their electricity price. Most of the tradeper hour is done on the spot market, while a minor part is done bilaterally between electricityproducers and electricity trading companies. The long-term trade can also be done bilaterally.


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Key gures for 2012The tables below summarise relevant gures for the electricity certicate market in 2012.Analyses and clarications of the content of the tables are provided continuously in the publication.

Key gure table A Key gures Sweden Norway

Electricity certicates issued [million electricity certicates]1

21.4 0.2Electricity certicates issued to plants included in the common

electricity certicate goal [million electricity certicates] 0.74 0.04

Electricity certicates issued to plants not included in the

common electricity certicate goal [million electricity certicates] 20.7 0.16

Expected renewable mean annual production for plants included

in the common electricity certicate goal [TWh] 2.8 0.4

Cancelled electricity certicates [million electricity certicates] 16.3 2.4

Quota obligation fullment [%] 99.95 99.97

1) 1 million el ectricity certicates = 1 TWh electricity production entitled to electricity certicates.

Key gure table BKey gures Sweden and Norway

Surplus for 2012 [million electr icity certicates] (change since 2011) 11.7 (+ 3)

Volume-weighted average price of transactions in the electricity

certicate registers NECS and Cesar [SEK/electricity certicate]

(change since 2011) 201 (- 46)

Average spot price [SEK/electricity certicate] (change since 2011) 1 168 (- 19)

1) Average of daily closing prices for spot price contracts of the three largest brokers on the electricity certicate market during 2012.


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How the electricity certicatemarket works

1.

2.

3.

4.

4.

5.

5.

Electricity certicates provide nancial support to producers of renewable electricity in Swedenand Norway. The electricity certicate system is market-based and aims to increase the productionof electricity from renewable sources in a cost-effective way.

Illustration of the electricity certicate market

1. Electricity producers 2. The electricity certica - 3. Demand for electricity 4. It is the electricity end 5. Each year, the body withreceive one electricity tes are sold on the electri- certicates is created by user who nally pays for quota obligation must can-certicate for each mega- city certicate market, electricity suppliers and the expansion of the rene - cel electricity certicateswatt-hour (MWh) of where supply and demand some electricity end users wable electricity produc- in order to full its quotarenewable electri city govern the price. In this being obligated by law to tion, as the cost of the obligation .produced for a maximum way, the producers receive buy electricity certicates electricity certicate isof 15 years. an extra income from the correspondi ng to a certain part of the electri city in-

electri city production in proportion (quota) of their voiceaddition to the price of electri city sales or usage.the electricity.


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A COMMON MARKET These plants are thus not included in the commonSince 1 January 2012, Sweden and Norway have goal. During the period from 2003 to 2012, i.e.

had a common market for electricity certicates. before Sweden and Norway formed a commonIt is based on the Swedish electricity certicate market, Sweden nanced increased renewablemarket, which was established in 2003. The goal is electricity production of 13.3 TWh.to increase renewable electricity production by a to-tal of 26.4 TWh in the two countries between 2012 The common electricity certicate market meansand 2020, and in this way contribute to the achie- that the renewable resources are used morevement of the countries goals under the EUs Rene- efciently than if the countries were to work each

wables Directive 2. The common electricity certi- by itself on increasing the production of renewablecate market is due to continue until the end of 2035. electricity. A larger market with more participants

contributes to increased liquidity. As both SwedishSweden and Norway are benetting from equal and Norwegian producers of renewable electricityshares of the increased common renewable electri- can receive support from the system, investmentscity production from the 2012 level when offset- are made where the circumstances and the prota-ting the countries goals for 2020. In addition to bility are best. This means that the goal of

this, Sweden and Norway shall independently increased renewable electricity production can benance the renewable electricity production in achieved in a more cost-effective way than byplants that became operational before 1 January having two national markets.2012 and which are entitled to electricity certicates.

FACT 1: Contractual undertaking

According to the agreement on a common market for electricity certicates betweenSweden and Norway, both countries together shall strive to cancel 198 million certicates(corresponding to 198 TWh) by 2035. The reason why 198 TWh are to be cancelled is thateach country shall nance 13.2 TWh new renewable electricity production during 15 years(which makes 15 year x 13.2 TWh = 198 TWh).

Sweden and Norway have agreed on equally ambitious undertakings from the time thecommon market started. In conjunction with the Swedish Riksdag deciding on a newSwedish quota curve in 2010 in order to produce an increase of 25 TWh between 2002and 2020, a quota curve was achieved that was designed to produce an increase of 13.2TWh as from 2012. As the countries had agreed on an equally ambitious undertaking,the goal for the common market became 26.4 TWh between 2012 and 2020

2) The EUs Renewables Directive was incorporated in the EEA agreement in December 2011.


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ELECTRICITY PRODUCERS

Electricity producers apply to have their plant

approved for allocation of electricity certica-tes from the Swedish Energy Agency or theNorwegian Water Resources and Energy Direc-torate (NVE). The Swedish or Norwegian stateissue electricity certicates to the electricityproducers for each megawatt-hour (MWh) ofrenewable electricity produced. The electricity

certicates can then be sold, and the electricityproducers receive an extra income from theelectricity production over and above the pricecharged.

Electricity certicates are issued on the 15th ofeach month, based on the electricity produc-

tion of the previous month. The certicates areissued to the electricity producers certicateaccounts with the Swedish or Norwegianaccounting systems, named Cesar and NECS 3 respectively.

New plants and production increases within

existing plants are entitled to receive electricitycerticates for a maximum of 15 years, howeverno longer than to the end of 2035, when theelectricity certicate system ends. The totalnumber of electricity certicates issued isgoverned by the electricity production of theapproved plants. For combined heat and power

plants, the proportion of renewable fuel alsohas an impact. External factors, such as tempe-rature, precipitation, wind availability andelectricity balance affect the electricity produc-tion, and therefore also the number of electrici-ty certicates issued.

FACT 2: Energy sources

Electricity produced from the follo-wing sources is entitled to electri-city certicates:

biofuels 4 (and peat in combinedheat and power plants in Sweden),

geothermal energy, solar energy, hydro energy, wind energy, wave energy.

FACT 3: Assignment periods forapproved plants

Plants that have become operatio-nal in Sweden as from 1 May 2003

are entitled to electricity certicate for 15 years. In Norway, the assignment period

is 15 years from the approval date,minus any time the plant may havebeen operational before 1 January

2012. Production increases within existing plants in Norway and Sweden give entitlement to electricity

certicates for the increasedrenewable electricity productionfor a maximum of 15 years.

Major reconstruction within existing plants in Sweden is deemed

equal to new plants, with an allocation period of 15 years.

3) Svenska Kraftnt is the accounting authority for Cesar, and Statnett has registration responsibility for NECS .

4) In Sweden according to the Ordinance (2011:1480) concerning Electricity Certicates. I Norway according to FOR 2011-12-16 No 1398: Regulation concerning Electricity

Certicates. Owners of biofuel plants must declare monthly in arrears in Cesar or NECS respectively how large a proportion of the electricity produced comes from fuels

entitled to electricity certicates compared to the total i nput fuel.


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QUOTAS AND MARKET PARTICIPANTS 2012 to 2035. The quota curves are designed toWITH A QUOTA OBLIGATION stimulate the expansion of renewable electricity

Market participants with a quota obligation are according to the goals set for the countries. Eachprimarily electricity suppliers, but there are also countrys quota curve has been calculated andsome electricity end users (see fact box below). adopted based on assumptions about future elec-Each year, they must buy electricity certicates tricity usage with quota obligation. If the actualfor a certain proportion of their electricity sales electricity usage with quota obligation divergesor usage the quota obligation. The quotas from the expected electricity usage, this maystate the percentage of the electricity usage with mean that the quota curves need to be adjusted

quota obligation for which the market partici- in order for cancellation to take place accordingpants with quota obligation need to purchase to the agreement between the countries. The rstelectricity certicates. adjustment will be made in conjunction with the

progress review in 2015.The quotas, which are set in the Act concerning Such an adjustment of the quotas does not entailElectricity Certicates, will gradually increase a change of the goal of 26.4 TWh new produc-until 2020 (see Table 1 in the table section, and tion of renewable electricity.

also Figure 1), which leads to increased demandfor electricity certicates. The quotas are set for For 2012, Swedish market participants with aeach country. Swedens quota curve applies from quota obligation needed to buy electricity certi-2003 to 2035. Norways quota applies from cates equal to 17.9 % of their electricity sales/

FACTA 4: Market participants with a quota obligation

In Sweden, the following market participants have a quota obligation: Electricity suppliers. Electricity end users who use electricity they have produced themselves, if the

amount of electricity used is more than 60 MWh per ca lculation year and has beenproduced in a plant with an installed capacity higher than 50 kW.

Electricity end users to the extent they have used electricity they have imported orbought on the Nordic electricity exchange.

Electricity-intensive industries registered by the Swedish Energy Agency.

In Norway, the following market participants have a quota obligation: Those who deliver electricity to an end user. Electricity end users who use electricity they have produced themselves. Electricity end users to the extent they have used electricity they have bought on

the Nordic electricity exchange or through bilateral agreements.


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2 0 0 3

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2 0 2 7

2 0 0 6 2 0

1 8 2 0

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0 9 2 0 2 1

2 0 3 3

2 0 3 5

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2 0 2 4

20

18

16

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10

8

6

4

2

0

Figure 1. Quotas for Sweden and Norway Source: Act (2011:1200) concerning Electricity Certicates; LOV 2011-06-24 No 39: Act concerning Electricity Certicates.

Q u o

t a [ % ]

Quota for Sweden

Quota for Norway

usage, and in Norway the quota was 3 %. The QUOTA OBLIGATION ANDreason why the quotas differ is mainly because CANCELLATIONthey are set so as to also nance the production Each year, market participants with quota obli-of renewable electricity in plants that are inclu- gations shall inform the Swedish Energy Agencyded in the transitional settlement. These plants or the Norwegian Water Resources and Energyare not part of the common goal. The difference Directorate respectively of the number of electri-in quotas is also because the usage of electricity city certicates they need in order to full theirwith a quota obligation is higher in Sweden than quota obligation and hold this number on theirin Norway. electricity certicate account. Swedish market

participants with quota obligations do this byTRADING submitting a declaration of their quota obligationTrading in electricity certicate is done on the to the Agency. Norwegian market participantselectricity certicates market, where the price is with quota obligations shall instead approve thedetermined by supply and demand. The com- quota obligation presented in NECS.mon market makes it possible to trade in bothSwedish and Norwegian electricity certicates. In order to full the quota obligation, the mar-The trading is carried out through bilateral ket participant with a quota obligation mustagreements between electricity producers and also hold electricity certicates correspondingmarket participants with quota obligations and to the statutory quota of the sales/usage of elec-also via brokers. Both electricity producers and tricity. The electricity certicates are thereaftermarket participants with quota obligations cancelled on 1 April, which means that the elec-must have an electricity certicate account with tricity certicates are deleted and cannot beCesar or NECS. During trading, electricitycerticates are transferred from a sellersaccount to a buyers account.


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used again. With the cancellation, the marketparticipant must buy new electricity certicates

in order to full the quota obligation for thenext year. In this way, a demand for electricitycerticates is constantly being created.

Important dates for quota obligation and

cancellation:

15 February

- Norway:

Network companies owners shall notify NECSof the amount of electricity relevant to the cal-culation used by each market participant with aquota obligation in their network area.

16 February- Norway:

The total electricity sales/usage by the marketparticipants with quota obligations for the pre-vious year is available on their accounts withNECS.

1 March- Norway:

Last day for Norwegian market participants withquota obligations to approve the quota obligation.

- Sweden:

Last day for Swedish market participants withquota obligation to submit a declaration of theelectricity sales and usage on which the previousyears quota obligation is based.

31 March- Sweden and Norway

Last date for market participants with quotaobligations to hold a sufcient number of elec-tricity certicates on their electricity certicateaccounts to full the quota obligation.

1 April- Sweden and Norway

Cancellation of the number of electricity certi-cates required to full the quota obligation.If there are not a sufcient number of electricitycerticates on the account, the Swedish EnergyAgency or NVE shall decide to impose a quotaobligation charge.

FACT 5: The cost to electricity suppliers

The electricity suppliers buy electricity certicates on the electricity certicate market,where the price is set on the basis of supply and demand and varies over time. The elec-tricity suppliers cost for electricity certicates is part of the customers invoices. Thecost varies with the expense to the electricity supplier for the purchase of the electricitycerticate and the years quota. The cost to the electricity customer for the elec tricitycerticate on the invoice is also dependent on the type of electricity contract. In order tomake an assessment of what a certain price of an electricity certicate corresponds to interms of cost per kWh for an electricity certicate, the following formula can be used:

SEK Electricity certicate price MWh x years quota

= cost of the electricity certicate [SEK 0.01/MWh] 10The volume-weighted annual average price of transactions in the electricity certicate regis-ters NECS and Cesar for electricity certicates during 2012 was SEK 201 per electricity certi-cate. The quotas were 17.9 % in Sweden and 3 % in Norway during 2012. This corresponds toan estimated average cost of electricity certicates of SEK 0.036/kWh in Sweden and SEK0.06/kWh in Norway during the year. In addition to this cost, transaction costs for the elec-tricity supplier and value added tax for the electricity customer may also be added.


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WHO DOES WHAT?The Swedish Energy Agency and the

Norwegian Water Resources and EnergyDirectorate:

Manage the electricity certicate system ineach country.

Handle applications for electricity certicates. Register/deregister market participants with a

quota obligation.

Supervise each countrys regulatory frame work for electricity certicates. Provide continuous information about the

development of the electricity certicate market. Administer sanction and quota obligation

charges.

The Swedish Energy Agency and NVE reportmarket statistics, such as the number of approvedproduction plants and registered market partici-pants with quota obligations on their websites.These also include information about the electri-city producers from which electricity certicatescan be bought, and other general information

about the electricity certicate system. The web-sites also include this publication in an electronicedition.

www.energimyndigheten.se /the-electricity-certicate-systemwww.nve.no/elsertikater

Svenska Kraftnt and Statnett

Responsible for registration in the Swedish and Norwegian accounting systems (Cesar and

NECS respectively). Issue electricity certicates on the 15th of each

month.

Cancel electricity certicates followingdecisions from the Swedish Energy Agency

and NVE respectively. Publish information continuously about the

number of electricity certicates issued, soldand cancelled, and also the average price ofelectricity certicates.

Svenska Kraftnt and Statnett report informa-

tion continuously on their websites. These inclu-de information about the number of electricitycerticates issued, sold and cancelled, and alsothe average price of electricity certicates.

http://certikat.svk.sehttp://necs.statnett.no

Swedish Energy Markets Inspectorate

In Sweden, the Swedish Energy Markets Inspec-torate (Ei) is the supervisory authority for theenergy markets for electricity, natural gas anddistrict heating. Ei checks that energy companiescomply with the regulatory framework and

works to ensure the energy markets functionwell. SEMIs website shows information aboutthe electricity prices of the electricity suppliers -including the electricity certicate price - whichmakes it possible for electricity customers tocompare electricity prices on the market.The website also includes analyses and monito-

ring of the contemporary environment of theelectricity market

www.energimarknadsinspektionen.se/en


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The Council

The Council for the electricity certicate

system was set up in accordance with Article11 of the Agreement on a Common Market forElectricity Certicates dated 29 June 2011between Sweden and Norway. The Councilconsists of representatives from the NorwegianMinistry of Petroleum and Energy and theSwedish Ministry of Enterprise, Energy and

Communications. The task of the Council is tofacilitate planning and the implementation ofprogress reviews, among other items. This isdone by initiating investigations, maintainingcontinuous supervision of the development ofthe market, analysing any needs for develop-ment of the regulatory framework and developing

a common communication strategy for measuresof importance to the market participants.

The Council is a non-decision-making body inrelation to national entitlement, for examplechanges in national legislation.

The CommitteeThe Committee for the electricity certicatesystem was set up in accordance with Article12 of the Agreement on a Common Marketfor Electricity Certicates dated 29 June 2011between Sweden and Norway. The Committeeconsists of representatives from the Swedish

Energy Agency and NVE.

The Committee shall keep itself informed anddiscuss the design and implementation of the

regulatory framework for allocating electricitycerticates. This applies, for example, the allo-cation for production increases within existingplants and new allocations following majorreconstruction.

It is the Council that sets the Committees

work procedures. The representatives on theCommittee shall provide the background infor-mation necessary for the Committee to carryout its tasks.


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Goal fullmentDuring 2012, plants with an expected mean annual production of 3.2 TWh became operationaland were approved for inclusion in the electricity certicate system. Of this production, 2.8 TWhwas constructed in Sweden and 0.4 TWh in Norway. Production from these plants is included inthe common goal of 26.4 TWh electricity production from renewables before the end of 2020.

In 2012, Swedish wind power representedaround 68 per cent (2.1 TWh) of the new expec-ted mean annual production included in thecommon goal. The wind power plants that beca-me operational in Sweden during 2012 are relati-vely evenly distributed across the area prices(see Table 4.1 in the table section).It was primarily new hydro plants that contribu-ted to the increased expected mean annual pro-duction in Norway. The major part of the newelectricity production in Norway is in NO2 andNO5 (see Figure 3 and Table 4). Most of the

Norwegian wind power plants that becameoperational in 2012 are not included in theelectricity certicate system, as the ownersinstead chose to retain the investment grantfrom ENOVA.

In order to achieve the goal of 26.4 TWhby the end of 2020, an average of 2.93 TWhnew electricity produced from renewablesneeds to become operational in the twocountries together each year.

FACT 7: Expected mean annual production in relation to actual production

The expected mean annual production is an estimate of the annual production of electricityfrom renewables at one plant under normal operational circumstances. This will differ fromthe actual production each year for the plant. This chapter uses expected mean annual pro-duction, as this gives a picture of the expected annual production for the operational plants.

It is the actual production that determines the number of electricity certicates issued to theplant. The production entitled to receive electricity certicates is dependent upon the wea-ther and the time of the year the plant was approved for inclusion in the system. The goal of26.4 TWh will correspond to the actual production by 2020. In 2012, these plants were issuedelectricity certicates corresponding to 0.04 TWh in Norway and 0.74 TWh in Sweden.


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There is no xed goal for each year, but the re- It is the market participants that make thelationship between actual expansion to the aver- investment decisions and build the plant, andage gure still provides an indication of how thereby determine how much renewable electri-much new production is needed each year in city production is expanded each year.order to reach the goal by 2020 (see Figure 2).

2 0 1 6

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2 0 1 4

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30

25

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10

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x p e c t e d m e a n a n n u a l p r o

d u c

t i o n

[ T W

h ]

Figure 2. New expected mean annual production within the 26.4 TWh goal

Sweden

Norway

2,93 TWh/year

26,4

2 0 1 2

FACT 8: Plants not included in the common goal

The plants entitled to receive electricity certicates that became operational before 2012are not included in the common goal of 26.4 TWh by 2020. Electricity certicates issuedto these plants shall instead be nanced by each country. During 2012, these plants wereissued with electricity certicates for production corresponding to 0.16 TWh in Norwayand 20.7 TWh in Sweden. On 1 January 2012, approximately 1,450 plants were phased outof the electricity certicate system in Sweden. This means that the allocation of electricitycerticates will reduce signicantly during 2013.

Source: Swedish Energy Agency, NVE


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Figure 3. New expected mean annual production for plants withinthe 26.4 TWh goal d ivided up by area prices

SE1

SE2

SE3

SE4

NO4

NO3

NO5

NO2

NO1

Wind

Hydro

Biofuel

Expected mean annual production perarea prices

Sweden GWh Norway GWh

SE1 432 NO1 22SE2 1 049 NO2 49SE3 579 NO3 119SE4 787 NO4 64Total 2 847 NO5 104 Total 358

Source: Swedish Energy Agency, NVE


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Key gure table CElectricity certicates issued [million] Sweden Norway

Wind 7,16 0,003

Hydro 3,14 0,20Biofuel 10,57 -

Solar 0,001 -

Peat 0,55

21,4

-

Total 0,2

FACT 9: Electricity producers receive one electricity certicate for each megawatt-hour (MWh)renewable electricity produced.1 MWh = 1 electricity certicate 1 TWh = 1 million electricity certicates

PHASING-OUT OF APPROVED PLANTS

During 2013, the number of electricity certica-tes issued on the market will be reduced. This isbecause many older Swedish plants were phasedout from the electricity certicate system at theend of 2012, and will therefore no longer beentitled to certicates. Some of these plants havehowever been given a longer allocation periodfollowing outages. The plants also have theopportunity to get a new allocation period ifmajor reconstruction has been carried out, or ifproduction has increased within the existingplant.

Of the Swedish plants that were operational be-fore 1 May 2003 and have been issued electricitycerticates, the allocation period for the majori-ty ended at the end of 2012. The older plantsremaining are entitled to receive electricitycerticates until the end of 2014.

The number of approved plants fell by approx-imately 1,450 due to the phasing-out as from1 January 2013. During 2012, these plants wereissued 10.8 million electricity certicates.

During the same period, 10.8 million electricitycerticates were issued to the plants that remainwithin the system. Some of those that remain inthe system became operational in 2012, andwere therefore not issued electricity certicatesfor a full year.

Tables 7 and 8 (see the tables section) show theinstalled capacity and expected mean annualproduction for all approved plants, divided upby when their allocation period ends. For biofuelplants, an annual average for the electricity pro-duction entitled to electricity certicates over thelast two years is shown instead of the plantsexpected mean annual production. It is im-portant to remember that the amount of electri-city produced that is phased out at various timesmay change due to differing operational circum-stances. As the annual average for biofuel plantsis calculated using longer series of productiondata, the importance of structural and overallchanges is smaller. Factors that may impact onthe calculation are changes in the proportion offuel entitled to electricity certicates and exter-nal factors, such as temperature.


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Cancellation of electricity certicatesIn 2012, a total of 18.7 million electricity certicates were cancelled. Of these, 16.3 million werecancelled in Sweden and 2.4 million in Norway. This is 1.2 million electricity certicates fewerthan the authorities had assumed when drawing up the quota curves.

The quota curves are based on how much elec- this was that electricity usage with a quota obli-tricity produced from renewable resources is to gation was lower than expected. The discrepan-be nanced and how large the electricity usage cy between actual and expected electricity usagewith a quota obligation can be assumed to be in with a quota obligation was about the same ineach country. The relationship between these Sweden and in Norway, but because of the hig-gures provides a percentage, which constitutes her quota in Sweden, the discrepancy betweenthe quota. As the quota is xed, while the elec- actual and assumed cancellation of electricitytricity usage with a quota obligation varies with certicates was greater in Sweden.factors such as the temperature and economic

outlook, the number of cancelled electricityQUOTA OBLIGATION FULFILMENT

certicates will not always correspond to the The cancellation for 2012 shows that most mar-cancellation calculated to achieve the goal. A ket participants with a quota obligation cancel-year with greater electricity usage than assumed led a sufcient number of electricity certicates.in the quota curves means that too many electri- For 2012, the overall quota obligation fullmentcity certicates are cancelled, while years with was 99.9 per cent. Market participants with alower electricity usage means that too few quota obligation who do not cancel electricity

electricity certicates are cancelled. certicates have a quota obligation charge impo-In order to ensure that Sweden and Norway sed for the electricity certicates lacking on thenance equal amounts of electricity production, certicate account. For 2012, 48 market partici-the quota curves must be adjusted during the pants (6 in Norway, 42 in Sweden) had to payon-going collaboration on the electricity certi- the quota obligation charge of SEK 297.86 percate market. Any adjustment will be made in electricity certicate that had not been cancelled.conjunction with the progress review in 2015. A total of 9,490 electricity certicates were lack-

During 2012, the electricity usage with a quota ing at cancellation. The charge amounts to 150obligation in Norway was higher than expected per cent of the volume-weighted average pricein the quota curve. Therefore more electricity under the calculation year on transactions in thecerticates were cancelled than expected. Howe- accounting systems (Cesar and NECS). Histori-ver, as the quota in Norway was low, the discre- cally, the proportion of cancelled electricity cer-pancy between the assumed and actual cancelled ticates has been almost 100 per cent in Sweden.electricity certicates was small (see Figure 5). In Norway, the quota obligation fullment was

Contrary to what happened in Norway, fewer similarly almost 100 per cent for the rst cancel-electricity certicates were cancelled in Sweden lation, which occurred in 2012.than expected in the quota curve. The reason for


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16

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12

10

8

6

4

2

0 E l e c t r i c i

t y c e r

t i c a t e s

[ m i l l i o n ]

Assumed in the quota curve

Actual cancellation

Norway Sweden

Key gure table DCancellation for 2012 Sweden Norway

Cancelled [million electricity certicates] 16,3 2,4

Quota obligation fullment [%] 99,9

SEK 297.86 each

99,97

NOK 267.80 eachQuota obligation charge

Key gure table ECance llat ion for 2012 Sweden Norway Assumed Actual Assumed Actual in the quota curve usage and in the quota curve usage and cancellation cancellation

Usage [TWh] 96, 6 91 74

3

2,2

79,4

2,4

Quota obligation [%]

Cancelled [ TWh]

17,9

17,3 16,3

Figure 5. The number of cancelled electricity cer ticates in relation to thenumber assumed in the quota curv e for Norway and Sweden respectively Source: Svenska Kraftnts and Statnetts accounting systems (Cesar and NECS respectively), Swedish Energy Agency and NVE


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Surplus

25

20

15

10

5

0

At the end of 2012, the surplus minus the certicates cancelled, amounted to 11.7 million electri-city certicates. This is an increase of 3.0 million electricity certicates compared to last year andcorresponds to an increase of 33 per cent.

Electricity certicates issued but not cancelled participants with quota obligation do not cancelconstitute the electricity certicate surplus. electricity certicates according to their quota

There must be sufcient electricity certicates to obligation.balance the market. The surplus increasesduring the years when the allocation of electrici- At the start of the common market for electricityty certicates is higher than the demand for certicates in 2012, the surplus was 8.7 millionthem. The explanation for differences between electricity certicates. This surplus has beensupply and demand for electricity certicates built up gradually since 2003 on the Swedishduring individual years may be the time when electricity certicate market, and is now part of

plants are built and start producing, or the fact the common market.that fewer electricity certicates are cancelledthan expected. The latter occurs if the electricity In 2012, the surplus increased by 3.0 millionusage with quota obligation is lower than assu- electricity certicates. This means that after themed when the quota curve was set, or if market 2012 cancellation, the surplus held 11.7 million

Figure 6. Electricity cert icates issued, cancelled and the accumulated surplusduring 20032012Source: Svenska Kraftnts and Statnetts accounting systems (Cesar and NECS respectively)

E l e c t r i c i

t y c e r t

i c a

t e s

[ m i l l i o n ]

Electricity certicates issuedElectricity certicates cancelled

Accumulated surplus

2 0 0 3

2 0 0 7

2 0 1

1

2 0 1 2

2 0 0 4

2 0 0 8

2 0 0 5

2 0 0 9

2 0 0 6

2 0 1 0


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electricity certicates (see Figure 6). To reduce DISTRIBUTION OF THE SURPLUSthe surplus, Sweden adjusted its quotas at the Following the cancellation of electricity certi-latest progress review. The new quotas apply cates on 2 April 2013, there were 14.2 millionfrom 2013, and will contribute to reducing the electricity certicates in various accounts withsurplus as a one-off measure. NECS and Cesar. This also includes electricity

certicates issued in relation to production inThe surplus in relation to the number of electri- January and February 2013.city certicates to be cancelled may provide anindication of the pressure on the electricity cer- The electricity certicates in accounts as ofticate market. A low surplus in relation to the 2 April 2013 had a market value of SEK 3.3number of electricity certicates to be cancelled billion, based on the average closing price ofmay contribute to increased price pressure on SEK 230/MWh for spot price contracts forthe electricity certicate market, as the compe- electricity certicates on 2 April 2013 with the

tition to buy electricity certicates increases. In three largest electricity certicate brokers.the same way, a large surplus in relation to the Figure 7 shows how these electricity certicatesnumber of electricity certicates cancelled may were distributed across the accounts of variouscontribute to a negative price pressure on the market participants in Sweden and Norway.electricity certicate market.

NO - Market participant

1%

NO - Electricity supplier entitled to electricitycerticates and with quota obligation

with quota obligation

SE - Market participantwith quota obligation

SE - Electricity supplier entitled to electricity

12%

19%

8 %

23%

37%

37 %

NO - Trader, ~ 0 %

NO - Market participant entitled to electricitycerticates, ~ 0 %

SE - Market participant entitled to electricitycerticates

certicates and withquota obligation 23 %

SE - Trader

Size of the surplus on 2 April 2013: 14. 2 million electricity certicates. This also includes electricity certicates issued inrelation to production in January and February 2013.

Figure 7. Distribution of electricity certicates between different marketparticipants in Norway and SwedenSource: Svenska Kraftnts and Statnetts accounting systems (Cesar and NECS respectively)


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n o v -

1 2

d e c -

1 2

450

400

350

300

250

200

150

100

50

0

250

200

150

100

50

0

Price and trading The average spot price registered with the three largest brokers of electricity certicates amountedto SEK 168/MWh during 2012. This corresponds to a price fall of 10 per cent since 2011. Despite afall in the average market price of electricity certicates, over the full year, the spot price of electri-city certicates rose by as much as 44 per cent during 2012.

2012 STARTED WITH LOW PRICES ON expansion rate may be some of the factors thatELECTRICITY CERTIFICATES could explain the price development.The lowest level was reached in February,when the average spot price for the month TRADING ON THE ELECTRICITYfrom the three largest brokers of electricity CERTIFICATE MARKETcerticates was SEK 140/MWh. The prices in Trading in electricity certicates is mostly donethese marketplaces in 2012 have been approx- between market participants with quota obliga-imately equal to an average difference between tions and market participants entitled to electri-highest and lowest prices of SEK 2/MWh. city certicates. There are also traders withPrices rose during the second half of 2012, accounts in the electricity certicate registersand the average price of electricity certicates NECS and Cesar. These traders intention isfor December nished up at SEK 210/MWh to buy electricity certicates and sell them at a(see Figure 8). The size of the surplus and the prot at a later date, and they may thereby

Figure 8. Average price of electricity cer ticates in spot t rading duringthe period 20032012

A v e r a g e p r i c e

[ S E K ]

A v e r a g e p r i c e

[ S E K ]

SKM

ICAP

CleanWorld

2 0 0 3 j a n

- 1 2

f e b - 1 2

m a r - 1

2

a p r - 1

2

m a y - 1

2 j u n

- 1 2 j u l

- 1 2 a u

g - 1 2

s e p -

1 2

o c t - 1

2

2 0 0 7 2 0

1 1 2 0

1 2 2 0

0 4 2 0

0 8 2 0

0 5 2 0

0 9 2 0

0 6 2 0

1 0

Difference between highest and lowest prices

Source: CleanWorld, ICAP and Svensk Kraftmkling

SKM

ICAP

CleanWorld


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contribute to evening out prices of electricitycerticates over time.

According to a summary of the transactionsin NECS and Cesar during the period from1 April 2012 to 31 March 2013, approximately49.4 million electricity certicates were sold(which corresponds to 49.4 TWh).

Data from the three largest brokers on the elec-tricity certicate market shows that approxima-tely 25 TWh was traded via brokers during theperiod 31 March 2012 to 1 April 2013. Figure 9shows the distribution of the various contractstraded via brokers.

Figure 9. Electricity certicate trading via brokers divided up by type ofcontract during the period 1 April 2012 up to and including 31 March 2013

35

30

25

20

15

10

5

0

P r o p o r t

i o n

[ % ]

SPOT(8,1 TWh)

Type of contract

March 2013(7,9 TWh)

March 2014(5,8 TWh)

March 2015(2,3 TWh)

March 2016(1,0 TWh)

Source: CleanWorld, ICAP and Svensk Kraftmkling

FACT 10: Standard contracts supply and payment

Electricity certicates are bought and sold both bilaterally and via brokers. There are twotypes of broker contracts available on the electricity certicate market, namely spot pricecontracts and March contracts. These contracts are available for the next ve years.

Spot contract Price Determined on the contract date Delivery Within ve banking days of the contract date Payment Within ten banking days of the contract date

March contract Price Determined on the contract date Delivery 18 March each year Payment Within ve banking days of the contract date


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REGISTER PRICES

The volume-weighted average price of transac-

tions in NECS and Cesar as from 1 April up toand including 31 March 2013 was SEK 198.57/ MWh. This is a decrease of SEK 7.9/MWhsince 1 April 2012. The average prices presen-ted in the electricity certicate registers Cesarand NECS are volume-weighted average prices oftransactions in each register during the period in

question. The price therefore reects all transfersbetween two legal entities during the period.

The register price provides a value of the electri-city certicates over a historic period, weightedin relation to the volume turned over during thesame period. The market price, on the otherhand, provides an indication of the value of anelectricity certicate at a given point in time.The register price can therefore not be consi-dered to be the market price of electricitycerticates.


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Table 4.1 Expected annual production per a rea price for plants in Sweden within the 26.4 TWh goal

SE1 Expected mean annual production

[GWh]Biofuel -Solar -Hydro 4Wind 428Total 432

SE2 Expected mean annual production

[GWh]Biofuel 323Solar 0,03Hydro 2Wind 724Total 1 049

SE3 Expected mean annual production[GWh]

Biofuel 207Solar 0,91Hydro 6Wind 365Total 579

SE4 Expected mean annual production[GWh]

Biofuel 243Solar 0,25Hydro -Wind 544Total 787

Source: Swedish Energy Agency

Table 4.2 Expected mean annual production per area price for plants inNorway within the 26.4 TWh goalNO1 Expected mean annual production

[GWh]

Biofuel -Solar -Hydro 22Wind -Total 22

NO2 Expected mean annual production[GWh]

Biofuel -Solar -Hydro 44Wind 5Total 49


Biofuel -Solar -Hydro 108Wind 11Total 119


Biofuel -Solar -Hydro -Wind 64Total 64


Biofuel -Solar -Hydro 104Wind -Total 104

Source: Norwegian water resources and energ y directorate


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Number of 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012plants [ea] 1 May-Dec

Biofuel, peat 87 105 118 125 131 142 156 163 170 180Solar 1 1 2 3 4 9 11 13 31 61Hydro 966 1 040 1 060 1 075 1 094 1 120 1 144 1 164 1 200 1 210Wind 543 613 668 706 846 948 1 108 1 371 1 633 1 875 3

Total 1 597 1 759 1 848 1 909 2 075 2 219 2 419 2 711 3 034 3 326

Electricity 2003

productionMay-Dec

renewable andpeat [MWh]

2004 2005 2006 2007 2008 2009 2010 2011 2012

Biofuel 4 218 276 7 670 770 7 925 790 8 593 538 9 049 308 9 599 311 9 765 983 11 162 850 10 305 639 10 571 205Solar 4 6 5 20 19 129 212 275 529 1 027Peat - 544 791 634 012 556 380 579 622 834 194 871 437 792 434 657 438 550 734Hydro 9 63 637 1 968 325 1 799 446 2 018 577 2 195 320 2 607 348 2 441 624 2 611 044 2 698 130 3 144 187Wind 455 642 864 546 939 125 988 340 1 431 644 1 995 846 2 490 409 3 485 933 6 093 169 7 159 745Total 5 637 559 11 048 438 11 298 378 12 156 855 13 255 913 15 036 828 15 569 665 18 052 536 19 754 905 21 426 898

Installed capa- 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012city [MW] 2 May-Dec

Biofuel, peat 3 157 3 185 3 424 3 643 3 676 3 451 3 892 4 056 3 924 4 138Solar 0,008 0,008 0,011 0,036 0,043 0,309 0,369 0,557 1,001 1,601Hydro 491 504 517 540 558 598 602 620 657 662Wind 401 472 530 583 831 1 074 1 440 1 998 2 688 3 495Total 4 049 4 161 4 471 4 765 5 066 5 123 5 935 6 674 7 271 8 296

Energy source Sweden [millions of electricity certicates] Norway [millions of electric ity certifcates]Biofuel 10,57 0,0

Solar 0,001 0,0Peat 0,55 0,0Hydro 3,14 0,20Wind 7,16 0,003Total 21,42 0,20

Table 5. Electricity cert icates issued in Sweden and Norway during 2012

Source: Svenska Kraftnts accounting system (Cesar respective NECS)

Table 6.1 Number of plants, installed capacity and electricity production perenergy source during 2003-2012 in Sweden

1) Number of plants issued more than 0 electricity certicates for each year. 2) Number of pl ants iss ued more than 0 e lectricit y certica tes.3) 1,875 wind power plants consisting of 2,28 5 individual turbines.

Source: Svenska Kraftnts accounting system (Cesar); Swedish Energy Agency


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Table 6.2 Number of plants, installed capacity and expected electricity meanannual production per energy source during 2012 in Norway

128 249 34 62 62 59 243 251 361 558 735 809Wind [MW] 479 4 17 18 6 19 54 19 48 22 71 173Hydro [MW]

2 685 209 1 40 44 151 144 59 417 132 484 214Biofuel [MW] 0,008 0 0 0 0 0,028 0,007 0,267 0,060 0,458 0,375 1,339Solar [MW]

3 293 462 52 120 112 229 441 329 827 713 1 290 1 197Total [MW]

2012 2014 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Energy source

262 545 60 135 134 112 655 634 973 1 523 1 945 2 137Wind [GWh ] 1 896 14 83 73 18 94 311 77 179 74 248 491Hydro [GWh ]

6 647 943 3 39 122 567 574 70 1 357 356 58 989Biofuel [GWh ] 0,040 0 0 0 0 0,023 0,010 0,221 0,053 0,243 0,358 1,167Solar [GWh ]

8 805 1 502 147 247 273 773 1 540 781 2 509 1 954 2 251 3 618Total [GWh]

2012 2014 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Energy source

Number of plants Installed capacity [MW] Expected meanannual production [GWh]

0 0 0 0 0 0 150 256 799,3 2 4,6 15,8

Source: NVE

Energy source

BiofuelSolarHydroWind

Table 7. Phasing-out of plants (installed capacity) during 20122027

Source: Cesar, Swedish Energy Agency, Norwegian water resources and energy directorate

Table 8. Phasing-out of plants (electricity production capacity) during 20122027 1

1) For wind, hydro and solar, the expected mean annual production is shown. For biofuel, an annual average for theelectricity production entitled to electricity certicates over the last two years is shown.

Source: Cesar, Swedish Energy Agency, Norwegian water resources and energy directorate


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Table 9.1 Cancellation of electricity certicates during 20032012 in Sweden

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 63,3 97,4 97,6 97,1 96,0 94,0 90,6 98,0 92,5 91,0Electricity with

quota obligation[TWh]

77 99,2 99,9 99,9 99,8 99,96 99,99 99,99 99,8 99,95Quota obligationfullment [%]

175 240 306 278 318 431 470 402 310 298Quota obligationfee [SEK/each]

37,8 40,6 40 ,9 40,5 42,8 41,6 36,5-37,4 39,7-40,6 40,3-41,3 ~ 42,3 2Exempted elec-tricity in electrici-ty-intensive com-panies [TWh] 1

182,8 14,4 3 ,1 2,3 8,3 2,3 0,7 0,8 9,5 2,6Total quotaobligation fee[MSEK]

3,5 7,8 10,1 12,4 14,5 15,3 15,4 17,5 16,5 16,3 3Number of can-celled electricitycerticates[million]

0,074 0,081 0,104 0 ,126 0,151 0,163 0,170 0,179 0,179 0,179Quota

1) A new regulatory framework for electricity-intensive industry was introduced on 1 January 2009 2) In 2012 , the exempted qu ota obliga tion for electricity- intensive in dustry with a d eclaratio n obliga tion corresp ondedto 40.8 T Wh. Exemptions for industry with no declaration obligation amounted to approximately 1.5 T Wh.3) These gures may be changed slightly, as an option for the Swedish Energy Agency to decide to cancel more

electricity certicates than stated in the declaration was introduced on 1 January 2012. The surplus number ofelectricity certicates are registered as locked and cancelled or given back to the owners once the decision has

come into legal force. Source: Act (2011:1200) concerning Electricity Certicates; Cesar; Swedish Energy Agency.

Source: Act (2011:1200) concerning Electricity Certicates; Cesar; Swedish Energy Agency

Table 9.2 Cancellation of electricity cer ticates in 2012 in Norway

2012Electricity with quota obligation[TWh] 79,4Electricity exempted from quota obligation [TWh] 37,3Quota 0,03Number of cancelled electricity certicates [million] 2,4Quota obligation fullment [%] 99,97Quota obligation fee [NOK/each] 267,8Total quota obligation fee [MNOK] 0,22

Source: LOV 2011-06-24 nr 39: Lov om elsertikater, NECS, NVE


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Glossary Cancellation of electricity certicates entails an The declaration shall state the proportion of eachelectricity certicate being returned to the govern- fuel out of the total energy input.ment from the account of the market participantwith a quota obligation (Cesar in Sweden and NECS Electricity certicate is an electronic proofin Norway). When an electricity certicate is cancel- issued by the Norwegian or Swedish governmentled it is used up and cannot be sold or used to full that one megawatt-hour (MWh) of renewable elec-

the quota obligation again. Cancellation is done on tricity has been produced in accordance with the1 April for the quota obligation of the previous year. Swedish Act (2011:1200) concerning ElectricityCerticates or the Norwegian LOV 2011-06-24

Cesar is the electronic accounting system for No 39: Act concerning Electricity Certicateselectricity certicates used by Svenska Kraftnt. respectively.In order to be issued, buy and sell electricitycerticates, an market participant has to have Electricity-intensive industry has an

a certicate account with Cesar. electricity certicate cost only for that part of theelectricity not used in the manufacturing process.Declaration by market participants withquota obligations in Sweden shall be submit- Electricity producer with entitlement toted to the Swedish Energy Agency no later than electricity certicates is the owner of a plant1 March for the previous calendar year. The decla- producing electricity from renewable energy sour-ration shall state the amount of electricity sold, ces and peat . The plant shall be approved by the

electricity used and any deductions, for example Swedish Energy Agency or NVE respectively forelectricity usage in electricity-intensive manufac- the allocation of electricity certicates. By beingturing processes, auxiliary power, free power and approved by the electricity certicate system,electrical losses. the producer is issued one electricity certicate

per megawatt-hour of electricity producer andDeclaration of electricity production in measured.Norway from biofuel and peat shall be submitted

to Statnett no later than the 10th of the month Electricity production with entitlement tofollowing the production month. The declaration electricity certicates is electricity producedshall state the proportion of each fuel out of the from renewable energy sources (and peat in Swe-total energy input. den) that comply with the requirements of the

Swedish Act (2011:1200) concerning ElectricityDeclaration of electricity production in Certicates or the Norwegian LOV 2011-06-24Sweden from biofuel and peat shall be submitted No 39: Act concerning Electricity Certicates

to Svenska Kraftnt no later than the 15th of the respectively.month following the production month.


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Electricity supplier is a market participant course. In addition to these energy sources, theresupplying electricity that it or someone else are also geothermal energy sources, whose sourceproduces. Apart from those companies that is the interior of the Earth.have electricity supply as their main objective,market participants such as property companies Spot contract is a contract at market pricethat deliver electricity to their customers may where the electricity certicates are transferredalso be included in the concept. from the seller to the buyer within one week.

Expected mean annual production is the Statnett manages the national grid for electricalestimated annual production of electricity from power in Norway and has system responsibility forrenewables under normal operational circum- the Norwegian electricity supply. Statnett is thestances. authority managing the accounting system for the

electricity certicate system in Norway and isForward contract is a purchase agreement in- responsible for the accounting system NECS.tended to be completed at a set time in the futureat a price set when the contract was entered into. Svenska kraftnt (SvK) manages the national

grid in Sweden for electrical power and hasIndustrial back-pressure power produc- system responsibility for the Swedish electricitytion is a combined heat and power plant within supply. SvK is the authority managing theindustry used to produce process steam (heat) accounting system for the electricity certicateand electricity simultaneously. system in Sweden and is responsible for theCombined heat and power production (CHP) accounting system Cesar.is the use of a thermal process, for example asteam boiler, for the combined production of Quota obligation is the obligation to hold theelectricity and heat. right number of electricity certicates on 1 April

each year in relation to the market participants sa-NECS is the electronic accounting system for les or usage of electricity during the preceding year.electricity certicates used by Statnett. All mar-ket participants with a quota obligation in Nor- Quota obligation fee must be paid by theway must have their own account with NECS. market participant with a quota obligation that

does not cancel the number of electricity certi-Renewable energy sources are those owing cates corresponding to its quota obligation.energy sources that are recreated constantly The fee is calculated per electricity certicatethrough the impact of the sun on Earth and on that has not been cancelled and amounts to 150nature. They are therefore called renewable. per cent of the volume-weighted average price ofWater, wind and wave power are owing energy electricity certicates during the period as fromsources, as is tidal energy. Biomass is regarded as 1 April of the calculation year up to and inclu-a solar-based energy source, and is therefore also ding 31 March the following year.a renewable energy source, as is solar power of


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ET 2013:19Stockholm/Oslo 2013

Edition: 200Graphic design: Granath Havas Worldwide

Printing: Arkitektkopia ABPhoto: www.sxc.hu


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Since 1 January 2012, Sweden and Norway have had a common market for electricitycerticates. Electricity certicates provide support to producers of renewable electricity.A common market for electricity certicates means that the renewable resources can be

used more efciently than if the countries were to work individually.The annual report for the electricity certicate market is published by the Norwegian

Water Resource and Energy Directorate (NVE) and the Swedish Energy Agency.With this publication, the NVE and the Agency wish to provide statistics relating to theelectricity certicate system and increase the understanding of how the system works.

The publication A Swedish-Norwegian Electricity Certicate Market - Annual Report 2012 is also published inNorwegian and Swedish. You can download them or order t hem from www.energimyndigheten.se or www.nve.no

Elcertifikat2013 Eng TA (2) (1)

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