Electricity certificates represent a form of financial support for the production of eletricity from renewable energy sources in Norway and Sweden. The electricity certificate system is market-based and is intended to increase energy production from renewable energy sources in a cost-effective manner.
Electricity certificates represents a financial support which makes it more profitable to invest in renewable energy sources like hydro, wind, solar and bioenergy. The electricity end users pay for development of renewable energy production because the cost of the electricity certificates is included in electricity bills. In Norway it is the Norwegian Water Resources and Energy Directorate (NVE) that govern the electricity certificates system.The system is regulated by the Act on Electricity Certificates and Regulations on Electricity Certificates.
Since 1 January 2012 Sweden and Norway have had a joint market for electricity certificates. From 2012 to the end of 2020 the goal is to increase renewable energy production by a total of 28.4 TWh in both countries. This represents the energy consumption of more than half of all Norwegian households. The collaboration will last until year end 2035.