The Electricity Certificate System that was introduced in 2003 (Sweden and Norway have had a shared Electricity Certificate System since January 1, 2012) is a market-based support system where trading takes place between renewable electricity producers and electricity consumers or producers subject to quota obligations. The system aims to increase the generation of renewable electricity in a cost-efficient and technology-neutral manner. The electricity certificate system increases the ability of renewable energy sources to compete with non-renewable energy sources.
An electricity certificate is awarded to a party that has generated and measured one MWh of electricity from renewable energy sources or peat in an approved facility. Electricity generated from the following energy sources entitles the producer to an electricity certificate: wind power, solar energy, wave energy, geothermal energy, biofuels, small-scale hydropower and peat when burnt in CHP plants.