Posts Tagged ‘electricity certificate’

Swedish investment in wind power collapses while waiting for new subsidies

September 22, 2014

The simple fact is that wind power investment depends upon subsidies. The greater the subsidy offered the greater the investment. The higher the electricity price the greater the value of any subsidies and the greater the investment.

Subsidies just don’t work.

And in the meantime the world has begun to cool.

From Swedish Radio:

During the second quarter of this year, decisions were made to invest in future wind power totaling 37 megawatts, down 83 percent compared with the same period last year according to statistics from the Swedish Federation of Wind Energy.

One reason for the decline is the low price of electricity, another is that the industry is waiting for next year’s so-called checkpoint in parliament on changes to the certificate system, a decision which, according to Annika Helker Lundström, CEO of Swedish Wind Energy, will be of great importance for Swedish wind power company.

……

The certificate system was introduced in 2003 and means that the government supp…orts producers of renewable electricity by handing out certificates worth one megawatt per piece which can then be sold to electricity suppliers. Electricity suppliers are in turn obliged to buy a certain amount of renewable electricity.

The current system is certified to award equivalent to 25 terawatt-hours by 2020, and already has a certificate for over 20 terra watt hours distributed. The Agency has proposed to the government that more certificates to be awarded and the dividend period is extended to 2030.

This should increase the willingness to invest in the electricity generators.


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