Ir. K.W. Kwant

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Renewable Energy policyNetherlands

• Ir. K.W. Kwant
• Programma adviseur Bio-energie
• Novem

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Contents

• Policy
• Results
• Fiscal support
• Green Energy Market
• Roadmap for future
• Conclusion

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Climate and energy policies

• Climate
• Kyoto 6 CO2 reduction as compared to 1990
• Reduction of acidification (NOx)
• Energy
• Energy efficiency improvement (30 in 2020)
• Renewable energy 5 in 2010 en 10 in 2020
• Renewable electricity 9 in 2010 (EU directive)

4
Strategy in liberalized market

• Agreements with sectors
• Greening of fiscal system
• Consumer driven market
• in 2001 using green certificates after july 1.
• Research and Development

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Fiscal support for renewable

• For Investment equals 30 subsidy
• Green funds, Tax credits, Fast depreciation
• For Production of Electricity from Renewable
  sources
• increased energy tax 6.02 cts/kWhe
• pay back to renewables 2.0 cts/kWhe
• no tax on green electricity since 1-1-1999

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Fiscal Regime Regulatory Energy Tax
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The principle of making renewable interesting for
power producers
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The principle of making renewable interesting for
power producers
Deficit
Cost PriceRenewableElectricity5,4-8,0 EUct
Price PowerProducers 3,2 EUct
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The principle of making renewable interesting for
power producers
Green funds
Deficit
Cost PriceRenewableElectricity5,4-8,0 EUct
Price PowerProducers 3,2 EUct
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The principle of making renewable interesting for
power producers
Green funds
Fiscal instruments
Deficit
Cost PriceRenewableElectricity5,4-8,0 EUct
Price PowerProducers 3,2 EUct
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The principle of making renewable interesting for
power producers
Energy Tax5,9 EUct
Green Electr. 6,8 EUct
Green funds
Fiscal instruments
Deficit
Cost PriceRenewableElectricity5,4-8,0 EUct
Price PowerProducers 3,2 EUct
Sales pricenormalelectricity17,1 EUct
Sales pricegreenelectricity18,1 EUct
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The principle of making renewable interesting for
power producers
Energy Tax5,9 EUct
Green Electr. 6,8 EUct
Green funds
Fiscal instruments
Payback1,9 EUct
Deficit
Cost PriceRenewableElectricity5,4-8,0 EUct
Price PowerProducers 3,2 EUct
Sales pricenormalelectricity17,1 EUct
Sales pricegreenelectricity18,1 EUct
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The principle of making renewable interesting for
power producers
Energy Tax5,9 EUct
Green Electr. 6,8 EUct
Green funds
Green Certificate
Fiscal instruments
Payback1,9 EUct
Deficit
Cost PriceRenewableElectricity5,4-8,0 EUct
Price PowerProducers 3,2 EUct
Sales pricenormalelectricity17,1 EUct
Sales pricegreenelectricity18,1 EUct
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The principle of making renewable interesting for
power producers
Energy Tax5,9 EUct
Green Electr. 6,8 EUct
Profit
Green funds
Profit
Green Certificate
Fiscal instruments
Payback1,9 EUct
Cost PriceRenewableElectricity5,4-8,0 EUct
Price PowerProducers 3,2 EUct
Sales pricenormalelectricity17,1 EUct
Sales pricegreenelectricity18,1 EUct
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Marketing of green energy
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Green electricity for consumers
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Green electricity Market

• Sharp increase in demand
• Production behind demand
• Since 1 januari 2002 import from other countries
• How to produce more in the Netherlands?

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Sales of Green Electricity
of total energy consumption
13 electricty consump tion 15.000 GWh
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Domestic Production
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From Fiscal Support to Production support

• Before 1/1/2003
• Tax 6 cts/Kwhe
• Nihil tariff for green electricity
• Production support 2 cts/kWhe
• After 1/1/2003
• green electricity 2.8 cts/kWhe

• After 1/7/2003 MEP national production of
  electricity
• guarantee for 10 yrs
• wind, bio, solar 6.8 cts/kwh
• cofiring 4.8 cts
• Waste incineration 2.8, if efficiency gt 27 .

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MEP tarifs 2003
Techniek/optie MEP subsidy,
ct/kWh Wind land 4,9 Wind sea 6,8 landfill
gas 0 Biomass large scale (3 jaar, gt
50MW) 4,8 Biomass mixtures (organic
part) 2,9 Waste Incinerators (organic part ? gt
26) 2,9 Biomass CHP (lt50MW,
standalone) 6,8 Hydro, PV 6,8 CHP Fossil 0,57
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From 1-7-03 (REBMEP)
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FROM 1-7-03 (REBMEP)
Groen-financiering
difference
costtpricegreen power 5,4-11,0 ct/kWh
costtpriceregular power 3,2 ct/kWh
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Vanaf 1-7-03 (REBMEP)
EcoTax REB6,4 ct/kWh
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More Information MEP, sales green certificates

• Greencertificates, by Tennet
• www.certiq.nl
• MEP subsidy
• www.enerq.nl

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Future MEP support ct/kWhe
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Thank you
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Questions in groups

• What info do you need for selling best practice
  in your country
• Is the info in format consistent
• Suggestions for analysis of projects