Yesterday, the Swedish Parliament passed the bill to end the electricity certificates support scheme on December 31st 2021. Following the Energy Policy Agreement (Energiöverenskommelsen) between five political parties in 2016, the Swedish government clearly communicated both the importance of a stop-rule that would keep a market in balance and prevent price collapse and how time-critical it was for it to come into place. They instructed the Swedish Energy Agency to come back with a stop rule proposal and do it quickly, time was of importance to get the risk capital back and not to jeopardize the green build-out. The elcert part of the Energy Policy Agreement created the trust in the market they needed. It gave investors the confidence to put SEK 90 billion in new Swedish wind power, creating the “Swedish wind-wonder”, going from 20 TWh yearly production in 2019 to 43 TWh in 2023.
Read the full blog post from Bodecker partners.
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