Translation from Norwegian
Please note: This is an unofficial translation of the Norwegian ACT 2011-06-24 nr 39 Lov om
elsertifikater. The translation is for information purposes only. In the event of any discrepancies
between this translation and the Norwegian original, the wording in the latter shall take precedence.
ACT 2011-06-24 No. 39: Act on elcertificates
CONTENTS
Chapter 1. Introductory provisions ..................................................................................................... 3
Section 1. Purpose ........................................................................................................................... 3
Section 2. Geographical scope of the Act..................................................................................... 3
Section 3. Definitions ....................................................................................................................... 3
Section 4. Elcertificates - functional period................................................................................... 3
Section 5. Foreign elcertificates ..................................................................................................... 3
Chapter 2. Issuance of elcertificates.................................................................................................. 4
Section 6. Entitlement to elcertificates .......................................................................................... 4
Section 7. Generation from renewable sources ........................................................................... 4
Section 8. Accreditation of production facilities............................................................................ 4
Section 9. Metering and reporting .................................................................................................. 5
Section 10. Issuance of elcertificates ............................................................................................ 5
Chapter 3. The elcertificate registry and trading of elcertificates .................................................. 6
Section 11. The elcertificate registry.............................................................................................. 6
Section 12. Trading and registering elcertificates........................................................................ 6
Section 13 Elcertificate pledges ..................................................................................................... 7
Section 14 Legal effect of registration in the elcertificate registry ............................................. 7
Section 15. Price information .......................................................................................................... 8
Chapter 4. Quota obligation ................................................................................................................ 8
Section 16. Who has a certificate obligation? .............................................................................. 8
Section 17 Annual elcertificate quotas .......................................................................................... 8
Section 18. Scope of the quota obligation .................................................................................... 9
Section 19. Registration of the quota obligation ........................................................................ 10
Section 20. Compliance with the quota obligation ..................................................................... 10
Section 21. Fee for failure to cancel elcertificates ..................................................................... 10
Section 22. Information to end-users........................................................................................... 10
Chapter 5. Miscellaneous provisions ............................................................................................... 10
Translation from Norwegian
Section 23. Audits ........................................................................................................................... 10
Section 24. Revocation of accreditation ...................................................................................... 11
Section 25. Coercive fines............................................................................................................. 11
Section 26. Violation fees .............................................................................................................. 11
Section 27. Penalties ..................................................................................................................... 12
Section 28. Fees ............................................................................................................................. 13
Section 29. Compensation ............................................................................................................ 13
Section 30. Regulations ................................................................................................................. 13
Chapter 6. Entry into force and transitional rules. Amendments to other Acts ......................... 13
Section 31 Entry into force ............................................................................................................ 13
Section 32. Amendments to other Acts ....................................................................................... 13
Translation from Norwegian
Act on elcertificates
Chapter 1. Introductory provisions
Section 1. Purpose
The purpose of the act is to contribute to increased generation of electrical energy
from renewable energy sources.
Section 2. Geographical scope of the Act
The act shall apply on Norwegian territory.
The King may determine that the entire Act or parts thereof shall apply on the
Norwegian continental shelf or in jurisdictions established pursuant to Act No. 91 of
17 December 1976 relating to the economic zone of Norway.
The King may provide regulations concerning application of the Act in Svalbard and
Jan Mayen, and may stipulate special rules taking into account the local conditions.
Section 3. Definitions
In the Act the following definitions shall apply:
a) elcertificate: a confirmation issued by the Norwegian State proving that one
b)
c)
d)
e)
megawatt hour (MWh) of renewable energy has been generated pursuant to
this Act
entitled producer: the owner of a production facility entitled to elcertificates
contingent on compliance with the terms and conditions stipulated in Chapter
2
quota obligation: an obligation to have a certain number of certificates for
cancellation by 1 April each year, in accordance with this Act
production facility: an installation for generation of electrical energy
registry responsible: the entity appointed responsible for issuing elcertificates
pursuant to Section 11 and for developing and running an electronic registry
for elcertificates.
Section 4. Elcertificates - functional period
Elcertificates can be issued for production that takes place up to and including 31
December 2035. The final cancellation of elcertificates will take place on 1 April 2036.
Section 5. Foreign elcertificates
The Ministry may stipulate more detailed provisions relating to the use of foreign
elcertificates to comply with the quota obligations and the more detailed terms and
conditions pertaining to this.
Translation from Norwegian
Chapter 2. Issuance of elcertificates
Section 6. Entitlement to elcertificates
The owner of a production facility is entitled to elcertificates if the production facility:
a) generates electrical energy based on renewable energy sources in accordance
with Section 7,
b) has been accredited in accordance with Section 8 and
c) complies with the requirements for metering and reporting in accordance with
Section 9.
Section 7. Generation from renewable sources
Elcertificates are issued for generation of electrical energy based on renewable
energy sources, including:
a) hydropower
b) wind power
c) solar power
d) ocean energy
e) geothermal energy
f) bioenergy
The Ministry may stipulate more detailed provisions relating to what constitutes a
renewable energy source.
Section 8. Accreditation of production devices
The Ministry shall, upon written application from the owner, accredit production
devices that qualify for the right to elcertificates.
The production devicemust:
a) have started construction after 7 September 2009,
b) be a hydropower plant with an installed capacity of up to 1 MW with construction
start after 1 January 2004, or
c) permanently increase its energy production with construction start after 7
September 2009.
Production devices as mentioned in litera c shall be accredited to the extent that the
increase in production is a result of an investment.
The Ministry may stipulate more detailed provisions relating to accreditation of
production devices, including stipulations relating to construction start, facilities that
are significantly renovated or affected by significant changes in the framework
conditions, as well as calculation and documentation of increased production.
Translation from Norwegian
Production devices that become operational after 31 December 2020 are not entitled
to elcertificates. Production devices that have received investment support from the
Norwegian State and that started construction after 7 September 2009 shall only be
accredited if the received investment support has been repaid by 30 April 2012. The
Ministry may stipulate more detailed provisions relating to rules concerning
repayment, including interest.
An entitled producer has a duty to report any changes relating to the production
device that may be of significance for the device accreditation as soon as the entity
becomes aware of these changes, including the time the change took place.
The King may stipulate regulations relating to fulfilment of obligations with another
state concerning exclusion of the right to elcertificates if state subsidies have been
granted for the generation of electrical energy in accredited production devices.
Section 9. Metering and reporting
Elcertificates are issued for electrical energy metered and reported to the registry
responsible on the basis of a system for metering generation and verification of the
metering results. Applications pursuant to Section 8 must contain documentation of
this.
If only parts of a facility’s production qualify for the right to elcertificates, the Ministry
may request that the owner makes special calculations and reports this production to
the registry responsible.
The Ministry may stipulate more detailed provisions relating to metering and reporting
of generation of electrical energy.
Section 10. Issuance of elcertificates
The registry responsible shall issue one elcertificate to the entity entitled to such a
certificate for each megawatt hour of electrical energy generated in an approved
production device in accordance with Section 8. Each elcertificate shall contain an
identification number and date of issue.
An elcertificate is issued to the entity entitled to such a certificate by registering the
certificate in the entity’s elcertificate account. The registrations shall take place
without undue delay after the registry responsible has received report of the entity’s
production.
For each accredited production device, elcertificates can be issued for a total period
of 15 years from the first allocation. For production devices comprised by Section 8,
first subsection, litera c, the issue period runs from the time of the first allocation after
the increased production became operational. For production devices comprised by
Section 8, first subsection, that became operational before the Act entered into force,
the operation period leading up to the date the act entered into force, shall be
deducted from the total issue period.
If an entitled producer is prevented from receiving electrical certificates due to
operational interruptions or incidents relating to transmission or distribution of
electrical energy, the Ministry may, upon application, extend the 15 year period for a
period corresponding to that during which the entitled producer did not receive
Translation from Norwegian
elcertificates. Elcertificates cannot be issued for production taking place after 31
December 2035.
Should an entitled producer find that it has been issued with an incorrect number of
elcertificates, the entity may request that the Ministry make a decision concerning
how many elcertificates the entity is entitled to.
Entitled producers have a duty to keep documentation pertaining to the issuance of
elcertificates for ten years after the end of the calendar year in which the elcertificates
were issued.
The Ministry may stipulate more detailed provisions relating to the issuance of
elcertificates.
Chapter 3. The elcertificate registry and trading of elcertificates
Section 11. The elcertificate registry
The registry responsible shall establish an elcertificate registry containing, inter alia,
information about the issuing and number of certificates, as well as transfer, trading
price and cancellation of elcertificates.
The registry responsible shall, upon written application, open elcertificate accounts
for entities with an obligation to hold elcertificates (obligated entities), entities entitled
to elcertificates (entitled entities) and others. Obligated entities shall have an
elcertificate account.
The registry responsible is responsible for running the elcertificate registry and for
registration and cancellation of elcertificates. The Ministry shall have direct access to
the elcertificate registry.
The Ministry appoints a registry responsible and may, through regulations or by
making an individual decision, stipulate terms and conditions for the elcertificate
registry, including the duty to open elcertificate accounts, keeping of the elcertificate
registry, criteria for when a right shall be considered registered, reporting to the
elcertificate registry and disclosure of information registered in the elcertificate
registry.
Section 12. Trading and registering elcertificates
Elcertificates can be sold to anyone with an elcertificate account pursuant to Section
11. All trading of elcertificates and the trading price shall be registered in the
elcertificate registry.
The seller is responsible for ensuring that the sale of elcertificates is registered in the
buyer’s elcertificate account and for informing the registry responsible of the trading
price.
The registry responsible may, upon written application from the buyer, conduct a
preliminary registration of the purchase if this is rendered probable. The registry
responsible shall immediately inform the seller about the preliminary registration. The
seller shall be given a two-week period to comment.
Translation from Norwegian
If the seller does not dispute the preliminary registration to the registry responsible
within two weeks, the purchase shall be registered as final in the buyer’s account.
Should the seller dispute the preliminary registration and inform the registry
responsible of this within two weeks, the preliminary registration shall be retained
until the issue has been legally settled, or the seller and buyer jointly request that the
registry responsible changes the preliminary registration. Elcertificates that have
been preliminary registered cannot be sold, pledged as security or transferred in any
other way.
The registry responsible conducts registrations or preliminary registrations of pledges
in the same way as sales. The registry responsible conducts registration of
bankruptcy and execution after receipt of a written notification.
The registry responsible may correct obvious errors in the elcertificate information.
The registry responsible shall, immediately after the correction has been made, notify
the account holders and other holders of legal rights that are affected by the
correction.
Section 13 Elcertificate pledges
Elcertificates may be pledged as security. Liens in elcertificates will have legal
protection once they are registered in the elcertificate registry. The pledge covers the
elcertificates specified as pledged in the pledger’s elcertificate account.
When pledging elcertificates as security, the parties shall notify the registry
responsible about the pledge. The pledgee must grant his consent before the pledge
can be deleted. The provisions relating to registration, preliminary registration and
correction of errors laid down in Section 12 shall apply correspondingly.
Execution in elcertificates registered in the elcertificate registry will have legal
protection once registered in the elcertificate registry.
A registered lien in elcertificates is a basis for execution of enforced payment
pursuant to Chapter 10 of the Norwegian Enforcement Act.
The Ministry may stipulate more detailed provisions relating to elcertificate pledges.
Section 14 Legal effect of registration in the elcertificate registry
A registered right takes precedence over a non-registered right, and over a right
registered at a later point in time.
An older right will, regardless of the first subsection, take precedence over a younger
right if:
a) the younger right is based on an agreement and the acquirer of the younger right
was aware of, or should have been aware of, the older right at the time of
registration, or
b) the younger right was acquired by inheritance.
Translation from Norwegian
When a right that was acquired through an agreement has been registered, the buyer
shall not be held accountable for the seller’s right not being in accordance with the
content of the elcertificate registry. This shall not apply if the buyer was aware of, or
should have been aware of, the seller’s lack of right when the purchase was
registered, or in the event of conflicts between colliding rights as stated in the first
and second subsection.
Section 15. Price information
The registry responsible shall continuously make public information about transfers of
elcertificates, including the date of transfer, the number of transferred elcertificates
and the amount of consideration paid.
The seller and buyer shall, upon request, submit contract documentation to the
registry responsible or the Ministry.
The Ministry may stipulate more detailed provisions relating to the collection and
publication of price information.
Chapter 4. Quota obligation
Section 16. Who has a quota obligation?
The following have an quota obligation:
a) anyone supplying electrical energy to an end-user,
b) anyone consuming self-produced electrical energy, and
c) anyone purchasing electrical energy for own consumption on the Nordic power
exchange or through a bilateral agreement.
In cases where the purchaser has an obligation to hold elcertificates pursuant to litera
c), the seller does not have an obligation to hold elcertificates.
Section 17 Annual elcertificate quotas
The annual elcertificate quota for entities with an quota obligation is a ratio provided
in the following table:
Calculation year for the quota obligation
Quota obligation
2012
2013
2014
2015
0.030
0.049
0.069
0.088
Translation from Norwegian
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
0.108
0.127
0.146
0.165
0.183
0.182
0.181
0.180
0.179
0.176
0.164
0.151
0.132
0.113
0.094
0.075
0.056
0.037
0.018
0.009
Section 18. Scope of the quota obligation
The scope of the obligation to hold elcertificates corresponds to the quota obliged
party’s consumption data in the individual year, multiplied by the quota (ratio)
established for the same year. If the calculated quota obligation does not make up a
whole number, the number of elcertificates per megawatt hour shall be rounded off to
the nearest whole number. However, the quota obligation shall always comprise at
least one elcertificate.
The consumption data pursuant to the first subsection shall mean deliveries as
mentioned in Section 1 of the Storting’s decision relating to a consumer tax on
electrical energy as stipulated for the 2011 budget period.
The King will stipulate more detailed provisions allowing power consumption in
power-intensive industries, possibly above a certain consumption level, to be
considered not calculation-relevant when an application for this has been submitted.
Purchases of electrical energy to cover grid losses are not calculation-relevant.
The grid companies have a duty to, upon request, provide the Ministry and the quota
obliged party with information about the consumption data supplied via the grid
companies’ grid.
The quota obliged party cannot charge end-users for elcertificate costs relating to
consumption that is not calculation-relevant.
Translation from Norwegian
Section 19. Registration of the quota obligation
Entities with an quota obligation pursuant to Sections 16 and 18 shall submit a
notification to the Ministry two weeks after the quota obligation has arisen at the
latest. The Ministry may, after prior notice, register entities that have not reported
their quota obligation.
Upon application, the Ministry may make decisions for obligated entities pursuant to
Section 16 to determine whether electrical energy is considered calculation-relevant
pursuant to Section 18.
Section 20. Compliance with the quota obligation
Entities with an obligation to hold elcertificates shall, by 1 March each year, report to
the registry responsible all electrical energy included in the calculation of the quota
obligation in accordance with Section 18, as well as the number of elcertificates to be
cancelled. The registry responsible shall forward the information to the Ministry.
Compliance with the quota obligation takes place as the registry responsible, as at 1
April each year, cancels the number of elcertificates specified by the quota obliged
party. Elcertificates that are pledged as security, subject to execution or preliminary
registered, cannot be cancelled.
Entities with an quota obligation shall keep documentation pertaining to the
establishment of the quota obligation for 10 years after the end of the calendar year
the quota obligation applies to.
Section 21. Fee for failure to cancel elcertificates
If an insufficient number of elcertificates have been cancelled for the quota obliged
party pursuant to Section 20, the Ministry will charge a fee for each elcertificate that
is lacking in order to comply with the quota obligation.
The final decision to impose a fee shall be a basis for enforced execution. The
Ministry will stipulate more detailed provisions relating to how a fee for failure to
comply with the quota obligation shall be calculated, imposed and recovered.
Section 22. Information to end-users
The quota obliged party shall provide end-users with specified information about the
costs incurred as a result of the quota obligation, and general information about the
quota obligation, including the quota for each year.
Chapter 5. Miscellaneous provisions
Section 23. Audits
The Ministry conducts audits to ensure compliance with the provisions stipulated in or
pursuant to the Act.
The Ministry may issue any orders necessary to ensure compliance with the
provisions stipulated in or pursuant to the Act.
Translation from Norwegian
All parties with rights or obligations under this Act must, regardless of provisions
relating to a duty of confidentiality, provide the Ministry with the information
necessary to execute authority pursuant to this Act, and to honour Norway’s
international commitments. The Ministry may, without being precluded by the
statutory duty of confidentiality, also provide information to other Norwegian
authorities to execute authority vis-à-vis entities comprised by the Act. To ensure that
Norway meets its contractual obligations to other states the Ministry may, without
being precluded by the statutory duty of confidentiality, provide such information to
other EEA member states as is necessary to promote enforcement of the Norwegian
State’s, or another relevant state’s, regulation of the elcertificate market. The Ministry
may stipulate more detailed provisions relating to the duty of disclosure, duty of
confidentiality, and disclosure of information.
The Ministry is entitled to access to production devices, premises, areas belonging to
such productiondevices and the registry responsible’s offices, to the extent that this
is necessary to conduct audits pursuant to this Act.
Section 24. Revocation of accreditation
If the accreditation as an entitled producer pursuant to Section 8 has been granted
on the basis of incorrect or misleading information, or should the production device
for other reasons no longer comply with the accreditation requirements, the
accreditation may be revoked.
Section 25. Coercive fines
The Ministry may decide to issue a coercive fine to ensure that a duty arising as a
result of or pursuant to this Act is fulfilled. The coercive fine may be issued as a
continuing fine or a one-off payment. The coercive fine is payable to the Treasury
and shall be a basis for enforced execution. The Ministry may waive an accrued
coercive fine in total or partly.
Section 26. Violation fees
The Ministry may impose a violation fee on anyone who wilfully or negligently
a) provides incorrect or misleading information in the application for accreditation of
production facilities or fails to provide such information pursuant to Section 8,
b) provides incorrect or misleading information regarding aspects that form the basis
for the issuance of elcertificates pursuant to Sections 9 and 10.
c) provides incorrect or misleading information pursuant to Section 12 or 15 in
connection with the sale of elcertificates,
d) violates or contributes to violation of the provisions relating to keeping of
documentation pursuant to Section 10, sixth subsection or Section 20, third
subsection,
e) violates or contributes to violation of the provisions relating to quota obligation in
Sections 19, 20 or 22, or
f) violates or contributes to violation of decisions made pursuant to Sections 18, 21 or
23.
Translation from Norwegian
The deadline for payment of fees is four weeks from the date of the decision.
Imposed fines are a basis for enforced execution. Claims for fees are collected by the
Norwegian National Collection Agency (NCA). The NCA may recover the claim
through deductions in pay or other similar payments pursuant to the rules in Section
2-7 of the Act relating to creditors’ rights to satisfaction of claims. The NCA may also
recover the claim by creating a lien by distraint for the claim if the lien can be given
legal protection through registration in a registry or by notifying a third party, cf.
Chapter 5 of the Mortgage Act, and the execution proceedings can be conducted at
the office of the NCA pursuant to Section 7-9, first subsection, of the Norwegian
Enforcement Act.
If a violation that may result in a violation fee has been committed by a party acting
on behalf of an undertaking, a violation fee may be imposed on the undertaking even
if a violation fee may not be imposed on any individual. An undertaking is defined
here as a company, sole proprietorship, foundation, association or another
amalgamation, estate or government agency.
In deciding whether a violation fee shall be imposed on an undertaking and in meting
out the sanction, particular emphasis shall be given to:
a) the seriousness of the violation,
b) whether the undertaking could have prevented the violation with guidelines,
instruction, training, monitoring or other measures.
c) whether the violation was committed to promote the undertaking’s interests,
d) whether the undertaking has benefitted, or could have benefitted, from the
violation,
e) whether this is a repeated violation,
f) the undertaking’s financial capacity.
Section 27. Penalties
Fines or imprisonment of up to three months, or both, will be imposed on anyone who
wilfully or negligently
a) provides incorrect or misleading information in the application for accreditation of
production facilities or fails to provide such information pursuant to Section 8,
b) provides incorrect or misleading information regarding aspects that form the basis
for the issuance of elcertificates pursuant to Sections 9 and 10.
c) provides incorrect or misleading information pursuant to Section 12 or 15 in
connection with the sale of elcertificates,
d) violates or contributes to violation of the provisions relating to quota obligation
pursuant to Sections 19, 20 or 22, or
e) violates or contributes to violation of decisions pursuant to Section 21 or 23.
Complicity is punished in the same way.
Translation from Norwegian
Section 28. Fees
The Ministry may stipulate more detailed provisions relating to fees for administrative
processing pursuant to the Act, including registration and keeping of accounts in the
elcertificate registry, processing of applications regarding accreditation of facilities
and audits.
Imposed fines are a basis for enforced execution.
Section 29. Compensation
The registry responsible is responsible for financial losses suffered by an entity as a
result of errors that have occurred in connection with the registration activities. This
shall not apply if the registry responsible can prove that the error was caused by
matters beyond his control which he could not reasonably have anticipated or
overcome the consequences of.
The compensation liability pursuant to the first subsection shall only apply to direct
losses.
For other financial losses, the registry responsible is liable if the loss is caused by
negligence by the registry responsible or by anyone the registry responsible is liable
for.
In the case of participation by the party who sustained the loss, the liability may be
reduced or lapse altogether.
Section 30. Regulations
The Ministry may issue regulations for the implementation and supplementation of
this Act and the regulations that are necessary to honour Norway’s obligations
pursuant to the EEA Agreement.
Chapter 6. Entry into force and transitional rules. Amendments to other Acts
Section 31 Entry into force
The King decides when the Act will enter into force1. The King may decide that
specific provisions in the Act shall enter into force at various times.
1
As of 1 Jan. 2012, pursuant to Res. No. 1244 of 16 Dec. 2011
Section 32. Amendments to other Acts
From the time the Act enters into force, the following amendments are made to other
Acts: - - The database was last updated on 15 June 2012.
Translation from Norwegian