CHP will conditions comparable to industry

The government proposes in its spring bill that carbon tax will be removed for all power plants in the EU emissions trading scheme. CHP with district heating would thus have the same competitive footing as industrial cogeneration plants, which is welcomed by industry associations Swedish Energy and the Swedish District Heating Association.

When the CHP plant owned by an industry that is part of the EU ETS, the Government has previously removed the carbon tax on the grounds that it is double regulation. However, if an energy company owns a similar facility has been the subject of both emissions trading and carbon tax paid. Government's proposal means that from next year will no longer be double taxing cogeneration connected to district heating networks.

It is good that the government is. Now we hope that it also will take hold of the property tax for CHP. There has recently reinterpreted Tax Code after 25 years, which will lead to massive cost increases for energy companies, said Eric Thor Power, head of tax and incentives issues in Swedish District Heating Association.