A common Nordic market is developing for green certificates. The authorities had aimed to present a defined plan to the Norwegian Parliament in Spring 2004, but did not stay on schedule. However, on November 24 2004 the Norwegian government presented a proposal based on the EU Renewable Energy Directive, which sets targets for renewable energy consumption in EU member states. The proposal aims to increase renewable energy production and consumption. The hearing was completed in February 2005.
According to the proposal, renewable energy producers will receive certificates in accordance with the volume of renewable energy they produce. Only the production of power stations for which construction began after January 1 2004 will be entitled to receive certificates.
Electricity suppliers must buy certificates. The demand in the electricity certificate market will depend on the quota fixed annually for suppliers. The increased expenses of the suppliers are supposed to be covered by the endusers.
The proposal stresses that the aim is to establish a common market for electricity certificates in Norway and Sweden. Harmonization with the equivalent proposed Swedish act will be carried out simultaneously and may result in adjustments to the presented proposal. The market was initially due to become operative on January 1 2006. Therefore, the Norwegian government promised to present a proposition to the Norwegian Parliament in Spring 2005.
However, according to a press release of February 14 2005 from the Ministry of Petroleum and Energy, Sweden aims to achieve a common market from 2007. As a consequence of the Swedish decision, the Norwegian market and a common market with Sweden will be launched one year later than originally planned.
The market's postponement does not affect which power stations are entitled to receive certificates, as the date for the start of construction still stands. However, it does have negative financial consequences, as the producers' extra income from the sale of electricity certificates will be put off for one year.
With regard to wind power, the postponement is generally of less or no importance, due to the extension of the current investment aid scheme. However, it is not politically desirable to have two parallel aid schemes and, therefore, if a wind power project has received investment aid after January 1 2004, the aid must be repaid completely before joining the market for electricity certificates.
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