Nordic Elcert issuance hits record 4.2m in December

Jan 17, 2020 | Montel

(Montel) The issuance of Swedish-Norwegian Elcerts rose 43% month on month to a record 4.2m certificates in December, energy regulator data showed on Wednesday.

The previous record had been 3.9m certificates, set in March 2019.

Wind power plants received a record 2.8m certificates last month, up from 1.7m in November, while hydropower plants received 0.7m in December, up from 0.5m the month before.

Meanwhile, biofuelled plants saw the number rise to 0.7m, from 0.6m in November.

A total of 3.2m certificates were allotted to Swedish plants, while Norwegian plants received 1m.

Plunging prices
The record issuance comes amid a prolonged period of wet and windy weather in Scandinavia, with Elcert prices tumbling in response.

The benchmark 2020 Elcert contract hit a record low SEK 27/MWh (EUR 2.56) on Tuesday, down 46% since the start of the year. Meanwhile the spot contract has dropped 44% to SEK 26.50/MWh, according to brokers SKM.

Further downside pressure came from low consumption as a mild winter limited heating demand.

Prices could still fall further, said Odd Rune Olsen at brokers Cleanworld.

The 2021 contract last traded at SEK 19/MWh and the 2020 contract could fall to a similar level, he said, noting the two contracts had historically cost roughly the same.

“However, I get the impression that no one is willing to sell certificates for less than SEK 10/MWh,” he said.

Under the joint Norwegian-Swedish support scheme, producers of renewable energy are eligible for one tradable certificate for each MWh they generate.

The certificates are sold to consumers who are required to cover a certain amount of their power use from plants supported by the scheme.

(EUR 1 = SEK 10.55)

Reporting by:
Roger Fry
14:19, Wednesday, 15 January 2020

Reporting by:
Kjersti Dalfest
14:19, Wednesday, 15 January 2020

Editing by:
Jeff Coelho
14:19, Wednesday, 15 January 2020