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Researchers saw electricity support - customers are blown to SEK 100 billion ($10 Billion)

In addition to being inefficient and hitting hard on electricity consumers, it cannot be ruled out that the electricity certificate system has contributed to knocking out other fossil-free electricity generation, namely a number of nuclear power reactors, which damages the electricity supply. This subsidy is only a free lunch for some shareholders and should be abolished, says chief economist Jacob Lundberg to DI.

Electricity consumers are the big losers in the electricity certificate system, a new research report shows. According to DI, the cost to consumers is more than SEK 100 billion (about $10 billion US dollars).

"Our analysis shows that the support system for subsidizing renewable electricity introduced by Sweden is extremely unprofitable for the economy," says Bengt Kriström, professor of natural resource economics at the Swedish University of Agricultural Sciences (SLU) in Umeå.

According to the report, electricity customers are the biggest losers by being forced to pay higher electricity prices through electricity certificate fees via the electricity bill. The electricity certificate system has failed, the researchers say.

- Our study shows that there is very little or no support for subsidies that have benefited from technical development, created more jobs or provided a safer electricity supply, says Bengt Kriström.

The support, which costs electricity customers billions of amounts each year, has no positive climate impact despite contributing to an investment boom in wind power and biofuel-fired cogeneration, for example.

- The reason is that the EU's emission allowance trading controls climate-harmful emissions and puts a ceiling. Our conclusion is that the economy would have won up to SEK 9 billion if the electricity certificates were never introduced, says Bengt Kriström to DI.

The think tank Timbro considers the data to be startling.

- In addition to being inefficient and hitting hard on electricity consumers, it cannot be ruled out that the electricity certificate system has contributed to knocking out other fossil-free electricity generation, namely a number of nuclear power reactors, which damages the electricity supply. This subsidy is only a free lunch for some shareholders and should be abolished, says chief economist Jacob Lundberg to DI.

Certificate system

The electricity certificate system is a market-based support system that aims to increase the production of renewable electricity in a cost-effective way, according to the Swedish Energy Agency's information.

The system is based on supporting new renewable electricity generation and it is financed by the electricity customers paying an extra fee via the electricity bill.

The energy sources that are entitled to be awarded electricity certificates are wind power, some hydropower, some biofuels, solar energy, geothermal energy, wave energy and turf in cogeneration plants.

Translation to English using Google Translate


Source: https://www.fplus.se/forska...

AUG 28 2019
http://www.windaction.org/posts/50247-researchers-saw-electricity-support-customers-are-blown-to-sek-100-billion-10-billion
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