On April the (25th) 2012, the Norwegian government presented a new climate policy. The White Paper on Climate Efforts is an ambitious policy that seeks to increase the production of renewable energy, use energy more efficiently and reduce the emission of greenhouse gases. In order to accomplish these targets, Norway entered into a joint el-certificate market with Sweden in 2012. The el-certificate is a remuneration scheme to incentivise the development of more renewable energy. Following the introduction of the scheme a series of initiatives were presented on how to utilise the renewable energy in an efficient way. Several academics and experts have argued against the remuneration scheme claiming that it is expensive and aimless. This paper will investigate if the proposed remuneration scheme leads to a competitive development of renewable energy, and more specifically the competitiveness of wind power in Norway. The thesis will also assess if the increase in renewable energy will lead to a reduction in greenhouse gas emission, which is a key target for the government. The author has chosen to focus on three important measures that could reduce the emission. The thesis concludes that the remuneration scheme will make onshore wind power projects competitive. However, it is not likely that any offshore wind power project will be developed over the lifetime of the remuneration scheme. Overall the remuneration scheme will favour the development of many small scale hydropower projects, which is inefficient and not environmentally friendly. The increase in more renewable energy could reduce the greenhouse gases emitted in Norway, but will not reduce the emission in the EU ETS, which Norway is a part of. Two of the measures proposed by the government to reduce the greenhouse gas emission are not realistic. The cost per ton emitted is too low compared to the emission reducing measure. The third solution, increasing the number of el-cars, is the most feasible solution.
|Educations||MSc in Finance and Strategic Management, (Graduate Programme) Final Thesis|
|Number of pages||100|