Global

Details

  • Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 7/1/2014

Sweden - Green energy program complies with EU directive 

July 1:  The Court of Justice of the European Union (CJEU) today issued a judgment finding that the Swedish support program for promoting green energy production in Sweden is compatible with EU law. The CJEU concluded that the EU Member States are not required to support the production of renewable energy in other EU countries. Ålands Vindkraft AB v. Energimyndigheten, C-573/12 (1 July 2014)

Read a CJEU release [PDF 112 KB]

Summary

An EU directive allows EU Member States to support the production of green energy.


In Sweden, green electricity production installations located in the national territory may be awarded electricity certificates which then may be sold to electricity suppliers or to certain users (who must hold a specific number of certificates or otherwise must pay a fee). The sale of the certificates enables producers of green electricity to receive income in addition to that derived from the sale of electricity.


A company applied to the Swedish authorities for electricity certificates for a wind farm in Finland. The application was refused, on the basis that the production installation was not located in Sweden.


Today, the CJEU found that the Swedish green certificate regime was a support program that is compatible with the directive.




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