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Quota Obligation The electricity suppliers are required to purchase electricity certificates corresponding to a certain quota of the electricity they sell. In addition electricity intensive companies and electricity users, who have used electricity that they have themselves produced, imported or purchased on the Nordic electricity exchange, are also labored to purchase certificates. This quota is set in advance so the objective of increasing the production of green electricity is reached by 2016, [6]. A table with the quota up to 2030 is found in Appendix E. Certificates The electricity certificates are traded purely electronically between producers and those who have quota obligations. This means that the price of certificates is determined by the relationship between supply and demand, [6]. Price changes can be seen in Appendix E. However in this study an average price of 235 SEK (26.1 €) per certificate is used. Electricity Prices The electricity price differs a great deal among the member states in the European Union. At present Sweden has a one of the lowest electricity price in the Union. This is probably due to the large percentage of hydro power utilized in the country, since hydro power in general generates electricity at a relatively low cost compared to competing technologies. Figure 1.1 shows a comparison between electricity prices for house holds in different European countries, it can be seen that the prices in Sweden is approximately 60-70% of the prices in Germany and Italy. However, the Swedish prices have increased the last decade, this is most likely related to the increased trade of electricity within the Union and if the trade continue to increase the Swedish prices will probably approach the higher European prices in the future, [7]. Figure 1.1 Electricity prices in July 2007 for households in different European countries, [8] 3PDF Image | Biomass Based Small Scale Combined Heat and Power Tech
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