19. april 2017 - 10:15
Swedish-Norwegian negotiations end with positive results
Today, the government announced that it has concluded its talks with the Swedish government on how to proceed with a Swedish extension of the green certificates-scheme towards 2030. All certificates will continue to be valid in the common market.
The agreement which has now been reached by the two governments is in line with the three main points outlined by NORWEA in February;
- Norway is allowing a Swedish increase in the RES target under the scheme of 18 TWh to 2030. Moreover, the agreement states that what is deployed beyond the 28,4 TWh target before 2020 is to go towards fulfilling the new Swedish target.
- A stop-mechanism is to be devised in Sweden by the end of 2020. The mechanism is to provide predictability for market actors, and may be designed as either a time-limit or another limit for approving production for certificates under the scheme
- The quotas for certificate consumption in Sweden is to be pushed forward to 2018 and 2019, in order to achieve an earlier increase in certificate consumption. This allows for adjustments to reflect any over achievement in the original 28,4 TWh target, and for a smooth transition into the new system.
Moreover, although not part of our original message, we are happy that predictability for market actors is further bolstered by the fact that the Swedish increase in the RES target will be achieved by a linear increase in the Swedish quotas from 2022-2030 – notwithstanding the concession mentioned under point 3. This is in contrast with earlier talk of a rear-hunching quota-curve.
- The agreement we have been presented with today is a significant milestone, and credit is due to the Ministry of Petroleum and Energy and their counterparts in Sweden for at last reaching an agreement. With this, the 28,4 TWh is for the future to be called the 28,4 + 18 TWh target, boosting renewables in our two countries, says Øyvind Isachsen, CEO of NORWEA
- We note that Norwegian production will continue to count towards the new target up until 2021; it’s duly noted that Minister Søviknes today has urged Norwegian players to commission as many cranes and diggers as they can, and to build as much new renewable power as possible before 2021. As they would say in Sweden; “nu kör vi, grabbar!”, concludes Øyvind Isachsen, CEO of NORWEA.
Overall, NORWEA is happy with the results of the negotiations, and the contents of today’s announcement. Now it is expedient to make sure that the changes in the bilateral agreement governing the scheme is made as quickly as possible. Minister Søviknes is today quoted in Europower, saying that these changes will not require legislative changes, however, Parliament will be notified as soon as possible.
We have been through a period of great insecurity which have reflected on prices in recent weeks. The provisions in today’s agreement as well as a constructive effort to enact the agreement, should ensure that we land on an even keel before summer.
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