Quota system
Updated: 17.01.2019
Author: Oskar Vågerö
Act No. 2011:1200 obliges electricity suppliers, certain electricity consumers and energy-intensive companies to annually acquire renewable energy certificates in due proportion to their electricity sales and their consumption by a set date (Chapter 4 §§ 1 and 4 Act No. 2011:1200). Furthermore, the Act stipulates the conditions in which owners of renewable energy generation plants may acquire electricity certificates (Chapter 2 §§ 1-13 Act No. 2011:1200).
Eligible technologies
Wind energy | Eligible (Chapter 1 § 2 No. 2 Act No. 2011:1200). |
---|---|
Solar energy | Eligible (Chapter 1 § 2 No. 2 Act No. 2011:1200). |
Geothermal energy | Eligible (Chapter 1 § 2 No. 2 Act No. 2011:1200). |
Biogas | Eligible (Chapter 1 § 2 No. 2 Act No. 2011:1200; § 2 Regulation No. 2011:1480). |
Hydro-power |
|
Biomass | Eligible (Chapter 1 § 2 No. 2 Act No. 2011:1200; § 2 Regulation No. 2011:1480). |
Amount
Amount of quota and period of application | The quota shall be calculated by multiplying the number of megawatt hours of electricity sold or used during the calculation year with the quota obligation for the calculation year. The quotas for the period from 2018 to 2045 have been set as follows (Chapter 4 § 4 Act No. 2011:1200):
The quota shall be calculated by multiplying the number of megawatt hours of electricity sold or used during the calculation year with the quota obligation for the calculation year (Chapter 4 § 4 Act No. 2011:1200). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Adjustment of quotas | The procedure for changing the quota levels is not defined by law. For this reason, it will be necessary to amend the act governing the quota obligation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of certificates according to technology | One certificate is issued for every MWh of electricity produced, regardless of the generation technology employed (Chapter 3 § 2 Act No. 2011:1200). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fees and penalty charges | Quota obligation fine. Obligated persons that fail to satisfy their quota obligation shall pay a quota obligation fine. Each certificate not invalidated carries a fine of 150% of the weighed, average certificate value during the applicable obligation period (Chapter 6 § 1 Act No. 2011:1200). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual average certificate price | According to the Swedish Energy Agency, the average price per certificate (per MWh) was SEK 124 (approx. € 12.1) in 2017. |
Addressees
The quota obligation applies to
- companies supplying electricity to the consumers,
- electricity consumers who use electricity they have produced. The electricity consumed must exceed 60 MWh per year and have been produced in a plant with an installed capacity of more than 50 kW,
- electricity producers outside of a grid-concession, if the production amount to more than 60 MWh and if the electricity in a professional way is distributed to users in the same grid,
- electricity consumers, for electricity they imported from or purchased on the Nordic electricity market, and
- registered energy-intensive companies
(Chapter 4 § 1 Act No. 2011:1200).
Procedure
Process flow |
|
---|---|
Competent authority | The authorities in charge of the quota system are the Swedish Energy Agency, which monitors the procedure, and the Swedish Transmission Grid Operator (Svenska Kraftnät), which manages the certificate accounts (§ 3 Regulation No. 2011:1480). |
Eligibility period
Solar and geothermal plants commissioned prior to 1st May 2003 have become ineligible at the end of 2012 (Chapter 2 § 7 no. 1 Act No. 2011:1200); Certain plants using wind or hydro energy, biogas or biomass and commissioned prior to 1 May 2003 have become ineligible at the end of 2012 or 2014 (Chapter 2 § 7 no. 1 Act No. 2011:1200).
The eligibility of plants commissioned after this date will end after 15 years of support (Chapter 2 § 7 Act No. 2011:1200). In any case, eligibility will cease at the end of 2045 at the latest (Chapter 2 § 11 no. 2 Act No. 2011:1200).
International applicability
International certificate trade | According to the Swedish Energy Agency, Sweden and Norway introduced a common electricity certificate market on 1 January 2012. The producers of RES electricity receive certificates in their own country. These certificates can be traded on both the Swedish and Norwegian markets (Chapter 1 § 5 Act No. 2011:1200). |
---|
Distribution of costs
Consumers | According to the Energy Agency, the costs are borne by the consumers. |
---|---|
Distribution mechanism | According to the Energy Agency, electricity suppliers pass on the costs arising from the quota obligation to the consumers by adding a surcharge to their services. Since the introduction of the Swedish-Norwegian common certificate market, the costs of the quota obligation have been shared by the electricity consumers in both countries. |