12,7 TWh of renewable electricity through the electricity certificate system in 2007

12.7 TWh of renewable electricity was produced under the electricity certificate system in 2007. This is equivalent to the annual consumption of around half a million electrically heated detached houses.

Biofuels are the dominant source of energy for electricity production in the system. But the sharpest increase is for wind power, up 45 per cent on 2006, from 0.988 TWh to 1.43 TWh.    

The outcome of 12.7 TWh in 2007 is in line with the Swedish Parliament objective of an increase in the production of electricity from renewable energy sources of 17 TWh between 2002 and 2016. Renewable electricity production in Sweden to date has increased by 6.2 TWh since 2002. Since the electricity certificate system was launched in May 2003, around 400 new installations have been built with expected production of renewable electricity of around 2.1 TWh per year. “These installations are now beginning to make a significant contribution to the production of renewable electricity in Sweden,” says Mattias Eriksson, Head of Unit at the Swedish Energy Agency.

Peat is not classified as a renewable fuel, but is included in the electricity certificate system. Including peat, 13.3 TWh of electricity was produced under the electricity certificate system in 2007. Electricity production from biofuels received 68.3 per cent of all allocated electricity certificates, hydro power 16.5 per cent, wind power10.8 per cent and peat 4.4 per cent.

The amount of electricity subject to quota obligation in the electricity certificate system in 2007 was 96 TWh. 99.8 per cent of all electricity certificates were cancelled for the 2007 quota obligation.

“We are satisfied with 99.8 per cent fulfilment. Because of new rules for electricity-intensive enterprises and many new enterprises in the system we were worried that the quota fulfilment rate would be lower,” says Eriksson.

A total of 843 enterprises were affected by the year’s cancellation. Around twenty enterprises have not yet submitted their declarations. These enterprises face a quota obligation charge of SEK 318 per missing electricity certificate. The total quota obligation charge for 2007 is expected to be just over SEK 8 million.

Facts/Electricity Certificate System

The electricity certificate system has existed in Sweden since 2003. The electricity certificate system is a statutory and market-based support system aimed at inceasing production of electricity from renewable energy sources such as wind, solar, biofuels, small-scale hydro power, geothermal energy and peat in a cost-effective way. The target is for use of electricity from renewable energy sources to increase by 17 TWh from the 2002 level by 2016. The electricity certificate system will continue until 2030.

The system replaces previous government investment and operating grants for wind power, combined heat and power and small-scale hydro power. The principle is that there is a seller and a buyer of electricity certificates and that trading takes place between them. Approved producers of renewable electricity receive one electricity certificate for each megawatt-hour of electricity from central government. Electricity suppliers are obliged to purchase electricity certificates from the producers equivalent to a particular proportion of their billed electricity, known as a quota obligation. Demand for electricity certificates is consequently created, and producers of renewable electricity gain an extra source of revenue. Each year the electricity suppliers have to declare and submit electricity certificates equivalent to their quota obligation. The electricity certificates have to be in the accounts of those who have quota obligations by 31 March for cancellation.