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Sweden is moving away from its RES-E target. In absolute figures, RES-E production decreased between 1997 and 2004, mainly due to a lower level of large-scale hydro production. However, other RES, such as biowaste, solid biomass, offshore wind and PV have shown significant growth. In Sweden, a comprehensive policy mix exists, with tradable green certificates as the key mechanism. This system creates both an incentive to invest in the most cost-effective solutions and uncertainty for investment decisions due to variable prices.


Swedish RES-E policy is composed of the following mechanisms:

  • Tradable Green Certificates were introduced in 2003. The Renewable Energy with Green Certificates Bill that came into force on 1 January 2007 shifts the quota obligation from electricity users to electricity suppliers.
  • The environmental premium tariff for wind power is a transitory measure and will be progressively phased out by 2009 for onshore wind.


The RES-E target from the EU Directive for Sweden is 60 per cent of gross electricity consumption by 2010. The Swedish Parliament decided to aim for an increase in RES of 10 TWh between 2002 and 2010, which corresponds to a RES-E share of around 51 per cent in 2010. This deviates from the target originally set by the Directive. In June 2006, the Swedish target was amended to increase the production of RES-E by 17 TWh from 2002 to 2016. The Swedish share of RES-E for gross electricity consumption has decreased from 49.1 per cent in 1997 to 45.56 per cent in 2004 and approximately 38 per cent at the present time.

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