Sweden Renewables Report Q2 2016
BMI View: We hold a relatively muted outlook for the Swedish non-hydropower renewables sector thisquarter, as lack of regulatory clarity will weigh on investor sentiment. We attribute this view to the plannedintroduction of new taxes for the sector, uncertainty over tax harmonisation with Norway regarding theshared REC subsidy scheme and limited visibility into mooted nuclear power phase-down plans.
Lates Updates And Structural Trends
The implementation of the proposed removal of tax exemptions for wind power projects and introductionof a tax on photovoltaic (PV) solar power projects with more than 255kW of capacity would dramaticallyslow deployment of new utility-scale solar projects in Sweden.
Uncertainty over the renewable energy electricity certificate market (REC) shared between Sweden andNorway - and how to equate a highly Sweden-centric investment tendency due to favourable Swedishtaxation rules - will cause some uncertainty over the direction of the subsidy scheme. As Sweden wishedto increase the pool of renewable energy certificates for the scheme, Norway has set Swedish taxharmonisation with Norwegian tax rules as a prerequisite.
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