Tax Reduction for Wind Power - Prolongation

The Swedish budget bill for 2003 proposed to prolong the tax exemptions for electricity generated from wind power to the end of 2003. This "environmental bonus", introduced in 1994, provides the opportunity for deduction of the energy tax due on electricity produced from wind power. As of 2004, subsidy amounted to SKr 0.181/kWh. The European Commission first approved the temporary measure in October 1999, and more recently on 12 March 2002. The government proposed that the measure remain in force until it could be replaced by market-based support schemes. This required renewed approval by the European Commission.