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Swedes eye 2030 cut-off for renewables support

The Swedish Energy Agency has proposed a rule that will bring an end to the country’s electricity certificate system in 2030.

The electricity certificate provides market-based support for renewable energy and has been in place since 2003.

However, the Swedish wind association Svensk Vindenergi has criticised the proposal, stating that setting a date by which the system would come to an end threatens investment in wind, solar and other renewable energy technologies.

Having a date in place for the end of the system could trigger a sharp fall in electricity certificate prices, said the association.

Rapid growth in investment in wind power has meant that the electricity certificate system’s target, which was anticipated to be reached by 2030, will be achieved much sooner.

The renewables industry has argued for a volume-based limit to ensure the system comes to an end smoothly.

Svensk Vindenergi spokesperson Charlotte Unger Larson said those who invested early could go bankrupt and that those who are active in the market now, or are considering investing, could potentially lose confidence in Sweden and seek other renewables markets to invest in.

The Swedish Energy Agency said its proposal to close the electricity certificate system in 2030 will have the least impact on the market’s function ensuring the system’s predictability.

Unger Larson said investors expect the authority to be responsible for the functioning of the system, including taking steps to prevent a large surplus of electricity certificates.

Read the full article at reNEWS.biz