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| About Tricorona Products & Services Carbon Project Development Investor Relations Media Contact us | |||||||||||||||||||||||||||||||||||||
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  Svensk KraftmäklingSwedish Kraftmäkling’s (SKM’s) mission is to broker electricity contracts, electrical power and electricity certificates, including certificates of origin, in the deregulated Nordic power market. Revenues consist of commissions, payable on each brokered transaction, and are paid by both buyers and sellers. SKM has been brokering electricity since the deregulation of the Swedish electricity market in 1996 and is now the country’s only electricity brokerage firm. Nordic electricity production amounts to approximately 390 TWh per year. The financial market for electricity, i.e. buying and selling of futures and forward contracts (that must be completed) and options (where the buyer may choose to exercise a right to buy or sell) has annual sales of about 2,300 TWh. This means that total power generation in the Nordic countries was traded six times on the financial electricity market. SKM’s main competition comes from several Norwegian firms and Nordpool’s electronic marketplace. The brokered component makes up just under half of the financial electricity market. Customers include large and small electricity producers, power companies, funds and investment banks. Electricity certificates and certificates of originThe purpose of the electricity certificate system is to increase the amount of electricity produced from renewable energy sources in Sweden. These certificates are traded over the counter (OTC) and SKM offers the largest marketplace. SKM established its marketplace at the same time that the system was established in 2003, and SKM’s prices are the only public prices and are therefore widely used by others, both for determining the (fair) price of electricity certificates, and as a market reference in appraising these certificates. Sellers are electricity producers and purchasers of electricity who are mandated to buy a statutory quota of certificates. The current electricity certificate system will be in force until 2030, with an interim goal that renewable electricity production will amount to 17 TWh in 2016. Together, the seriousness of the climate issue and the legal requirement to label the origin of electricity have greatly increased supplier interest in making use of various guarantees of origin and branding their electricity as a good environmental choice. When no certificate of origin is procured, electricity is accounted for to consumers as “mixed remainders” (in principle, Nordic electricity minus certificates of origin). |
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Tricorona AB, Kungsgatan 32, Box 70426, SE-107 25 Stockholm, Sweden, Phone +46 (0)8-506 885 00, Fax +46 (0)8-34 60 80,  |
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