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Sweden, Norway expect 18 TWh of new renewable power by 2022

in News, Renewable Power

Note* - All images used are for editorial and illustrative purposes only and may not originate from the original news provider or associated company.

Norwegian and Swedish authorities said on a further 18 terawatt hours (TWh) of additional renewable electricity generation capacity will be completed by 2022 under a joint subsidy scheme.

Projects currently under construction totalled 7.4 TWh in Norway and 10.6 TWh in Sweden, a new monthly progress report showed. These projects should start operation in time to qualify for the Nordic countries’ joint electricity certificates system, which will close to new entrants from Jan. 1, 2022.

Created with an initial target to build 46.4 TWh of new green capacity, the scheme already covers 41.8 TWh, according to the report, and with a further 2.2 TWh also complete but yet to gain formal permission to generate the certificates awarded for each megawatt hour produced.

A tradeable commodity in its own right, and mandatory for power distributors to buy, an electricity certificate last traded at 3.50 Swedish crowns ($0.4346) per megawatt hour.

The price has plunged 35% since the start of the month however, amid growing oversupply due to windy and wet weather in the hydropower-dominated region and a rush to complete projects before the 2022 deadline.

The build-out of onshore wind power is expected to slow down in the following years amid growing local opposition, especially in Norway. On Wednesday, lawmakers from Norway’s three coalition parties and the opposition Progress Party agreed on new onshore wind planning rules.

These regulations will give the final say to municipalities and setting a five-year deadline for project completion, while promising to channel more of the ensuing tax revenues into local coffers.

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