Electricity Certificates and Emissions Permits Schemes in Sweden. Strategic implications for Vattenfall AB and Sydkraft AB
(2003)The International Institute for Industrial Environmental Economics
- Abstract
- In Sweden, energy utilities face the double challenge of complying with the Kyoto protocol targets and increasing renewable energy capacity to make use of the electricity certificates system. Sydkraft AB and Vattenfall AB, two of the largest players in the Nordic electricity market, have different expectations regarding the future development of the two mechanisms and, therefore, have different approaches to the uncertainties that the two mechanisms involve. Therefore, this research looks into the strategic implications of the emissions trading system and electricity certificates system for Sydkraft and Vattenfall.
The strategic implications of the implementation of both flexible mechanisms for Sydkraft and Vattenfall are: a) both... (More) - In Sweden, energy utilities face the double challenge of complying with the Kyoto protocol targets and increasing renewable energy capacity to make use of the electricity certificates system. Sydkraft AB and Vattenfall AB, two of the largest players in the Nordic electricity market, have different expectations regarding the future development of the two mechanisms and, therefore, have different approaches to the uncertainties that the two mechanisms involve. Therefore, this research looks into the strategic implications of the emissions trading system and electricity certificates system for Sydkraft and Vattenfall.
The strategic implications of the implementation of both flexible mechanisms for Sydkraft and Vattenfall are: a) both companies will make few investments to build renewable energy capacity and reduce carbon dioxide emissions, since investing in new capacity is currently a risky activity. Therefore, independent entrepreneurs are expected to be responsible for new developments in renewable energy; b) both companies will lose opportunities in green certificates trading, in the voluntary scheme of the Renewable Energy Certificates System (RECS), the Norwegian electricity certificates system or/and the European Tradable Renewable Energy Certificates System, if they become reality; c) both companies will face strategic disadvantages for not taking early moves in reducing carbon dioxide emissions and increasing renewable energy capacity, allowing other utilities to gain in experience and performance in the industry. Finally, in Sweden, electricity certificates and tradable emission permits are working in parallel and there are few possibilities to link them in order to both increase renewable energy capacity and reduce carbon dioxide emissions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1324961
- author
- Caycedo G., Juan Carlos
- supervisor
- organization
- year
- 2003
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- electricity certificates, emissions trading, energy utilities, tradable emission permits, Environmental studies, Miljöstudier
- language
- English
- id
- 1324961
- date added to LUP
- 2007-03-02 00:00:00
- date last changed
- 2007-03-02 00:00:00
@misc{1324961,
abstract = {{In Sweden, energy utilities face the double challenge of complying with the Kyoto protocol targets and increasing renewable energy capacity to make use of the electricity certificates system. Sydkraft AB and Vattenfall AB, two of the largest players in the Nordic electricity market, have different expectations regarding the future development of the two mechanisms and, therefore, have different approaches to the uncertainties that the two mechanisms involve. Therefore, this research looks into the strategic implications of the emissions trading system and electricity certificates system for Sydkraft and Vattenfall.
The strategic implications of the implementation of both flexible mechanisms for Sydkraft and Vattenfall are: a) both companies will make few investments to build renewable energy capacity and reduce carbon dioxide emissions, since investing in new capacity is currently a risky activity. Therefore, independent entrepreneurs are expected to be responsible for new developments in renewable energy; b) both companies will lose opportunities in green certificates trading, in the voluntary scheme of the Renewable Energy Certificates System (RECS), the Norwegian electricity certificates system or/and the European Tradable Renewable Energy Certificates System, if they become reality; c) both companies will face strategic disadvantages for not taking early moves in reducing carbon dioxide emissions and increasing renewable energy capacity, allowing other utilities to gain in experience and performance in the industry. Finally, in Sweden, electricity certificates and tradable emission permits are working in parallel and there are few possibilities to link them in order to both increase renewable energy capacity and reduce carbon dioxide emissions.}},
author = {{Caycedo G., Juan Carlos}},
language = {{eng}},
note = {{Student Paper}},
title = {{Electricity Certificates and Emissions Permits Schemes in Sweden. Strategic implications for Vattenfall AB and Sydkraft AB}},
year = {{2003}},
}