Sweden and Norway consider early termination of green subsidies

They said that on Friday, Sweden and Norway had asked their respective energy regulators for options to end a joint certificate scheme earlier than the current target date of 2035.

The joint electricity certificate scheme was introduced in 2012, and the last reform occurred in 2020. Its aim was to help build up 46.4 terawatt-hours (TWh), of renewable energy by 2030. This target had already been met in 2021.

The scheme gives a certificate that can be traded to power producers per megawatt-hour (MWh) they generate of green electricity, and power suppliers have to buy certificates for a portion of electricity sold.

In a recent statement, Norway's Energy Minister Terje Aasland stated that the goals of the scheme for electricity certificates have been achieved and the certificates are now covering the administrative costs.

He added that several stakeholders had called for the end of the scheme to be earlier. However, any decision taken must also consider the government's desire to create a predictable environment for market participants.

Aasland asked the Norwegian regulator NVE for a proposal regarding how to implement an early termination.

Ebba busch, the Swedish Minister of Energy and Economy, said that she had commissioned Sweden's Energy Agency (the country's energy agency) to examine the advantages and disadvantages associated with an earlier stop.

According to the Swedish government, the deadline for the presentation of the findings has been set at October 31st 2025.

The scheme has created a total of 55 TWh in green electricity production, of which 35 TWh was built in Sweden. Nora Buli is reporting, Terje Solsvik is editing.

(source: Reuters)