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Green certificates

The objective of green certificates is to increase the production of renewable energy. The system works as follows. Electricity producers are allocated green certificates for the amount of electricity they generate from new renewable power plants. The authorities then mandate electricity suppliers to buy a certain number of certificates. The certificate requirement defines how much renewable energy the scheme will lead to. Income from the green certificates goes to covering the difference between the market price of electricity and the costs involved in investing in new, renewable production.

Sweden has had a market in green certificates since 2003. After four years, the system has led to the development of over 13 TWh of renewable electricity produced from bioenergy, hydroenergy and wind power. There are now plans for a joint Norwegian-Swedish certificate market from 2012. This joint certificate market will provide 25TWh of new renewable electricity by 2020. Where and how this new renewable energy generation will be built is determined by the market. Thus politicians only get to decide how much energy is to be developed, while the market determines the technology and the certificate price. The producer receives certificates for a set number of years. In Sweden this is 15 years.

Read more:
http://www.energimyndigheten.se/Foretag/Elcertifikat/ http://webarchive.nationalarchives.gov.uk/+/http://www.berr.gov.uk//energy/sources/sustainable/microgeneration/strategy/implementation/certificates/page39834.html
http://www.regjeringen.no/nb/dep/oed/aktuelt/nyheter/2009/hva-far-produsenter-av-fornybar-energi-i.html?id=575828