The Swedish Electricity Certificate System is in compliance with EU Regulations

The EU court has issued its landmark ruling in the case between Ålands Vindkraft
and the Swedish Energy Agency regarding the compatibility of the Swedish
Electricity System with EU law.

The Swedish Energy Agency is very pleased with the outcome, where the Court decided in line with the position of the Swedish Energy Agency.

The Ruling is in short as follows:

The EU Court considers that a support scheme supporting green electricity such as the Swedish Electricity Certificate System is allowed under the EU Renewables Directive.

The Court first determined that legislation such as the Swedish law is in principle capable of impeding imports of electricity, especially green electricity, from other Member States and that, in consequence, it constitutes a measure having equivalent effect to a quantitative restriction on imports, in principle incompatible with the obligations under EU law resulting from Article 34 TFEU, unless that legislation can be objectively justified.

However, the Court found that the Swedish restriction is justified by the public interest objective of promoting the use of renewable energy sources in order to protect the environment and combat climate change.

The Court in particular states that the territorial restriction in the Swedish legislation does not go beyond what is necessary to attain the objective of increasing the production of green electricity, provided that there is a market for green certificates on which able to obtain certificates under fair terms.

The case was decided by the Court Grand Chamber.

- The Swedish Energy Agency is very pleased with the outcome, where the Court decided in line with our position, Camilla Rosenberg, Chief Legal Officer says.

Background

Ålands Vindkraft, which operates a wind farm in Finland, had applied for Swedish green certificates, and was refused on the grounds that green certificates were available only for wind farms based in Sweden. Ålands Vindkraft appealed to the court, which referred a series of questions to the European Court of Justice.