Continued high expansion of renewable electricity despite lower electricity certificate price
The development of renewable electricity during 2014 continued at a high pace,
despite the low price for electricity certificates. The largest percentage
increase is from Swedish solar energy and Norwegian wind power. The electricity
consumer's cost for the scheme is still low.
The high rate of expansion continues, and Swedish solar electricity production and Norwegian wind power account for the highest increase between 2013 and 2014. Production from solar installations has almost tripled in Sweden, and in Norway the production of wind power has expanded more than five-fold in the Electricity Certificate System. Since 2012, 10.3 TWh of renewable electricity production has been added within the joint goal. In 2014 Sweden contributed approximately 3.3 TWh.
The annual average price of electricity certificates was SEK 183, meaning that the price remained low compared with previous years. Electricity consumers' cost was 2.6 öre per kWh, compared with 2.7 öre per kWh in 2013.
"Production that came into the Electricity Certificate System in 2014 had been decided by investors no later than one year ago, and sometimes much longer ago than that. This means that today's electricity certificate price does not necessarily reflect the current willingness to invest," says Gustav Ebenå, head of the Renewable Electricity Unit at the Swedish Energy Agency.
Wind power in 2014 accounted for 64% of the expansion of renewable production within the Electricity Certificate System. Bio-power accounted for 27%, hydro-electric power for approximately 8% and solar and peat for less than 0.1% each.
Low electricity consumption
Quota-obligated electricity consumption in Sweden fell even more in 2014 and has not been as low since the start of the Electricity Certificate System in 2003. Quota-obligated electricity consumption in Sweden was 88.4 TWh in 2014, which resulted in a quota obligation on 12.5 million electricity certificates. In Norway, quota-obligated electricity consumption amounted to 76.7 TWh, which resulted in a quota obligation on 5.3 million electricity certificates. This year's reduced electricity consumption is largely due to the unusually warm weather. Since supply is still higher than demand, it means that the joint electricity certificate reserve increased by 0.9 million to a total of 13 million electricity certificates.
About quota obligation
Electricity suppliers and some electricity users are quota-obligated and are thus obliged to hold electricity certificates corresponding to a certain percentage of the electricity they sell or use. Every year, quota-obligated parties declare how much electricity they invoiced their customers and used during the previous year. On April 1st 2015, electricity certificates were cancelled on the basis of declarations submitted regarding 2014.