Transcript sjabloon azuur

Renewable energy and Climate
policy incentives in the
Netherlands
Michel Verhagen
Willem van der Heul
Energy production directorate
Ministry of Economic Affairs
directoraat-generaal voor energie
Koomen05
Topics
•incentives for renewable energy
Investment schemes EIA and EPR
 energy tax (REB)
 new MEP scheme
•incentives for climate policy
directoraat-generaal voor energie
Investment schemes
• Stimulate investments in energy saving
and renewable energy
• EIA: energy investment deduction
scheme for enterprises (55% of investment
is deductible from profit tax);
• EPR: investment scheme for households.
RE investments 50% subsidy
directoraat-generaal voor energie
Energy tax (REB)
• on gas and electricity consumption
• ceiling of 1 mln m3 and 10 mln kWh
• total revenue in 2002 over € 3 bln
• All REB is returned to target groups, i.e
households and SME’s.
• For example: REB exemption for green
electricity
directoraat-generaal voor energie
REB on electricity (€ct/kWh)
kWh
‘98 ‘99 ‘00 ‘01 ‘02 ‘03
0-800
0
5.84
6,01
6,39
800-10000
1.35 2.25 3.72 5.84
6,01
6,39
10000-50000
1.35 1.47 1.61 1.94
2,00
2,07
50000-10 mln
0
0.1
0.22 0.60
0,61
0,63
> 10 mln
0
0
0
0
0
directoraat-generaal voor energie
0
0
0
MEP scheme (environmental
quality of electricity production)
• subsidise national production of green,
CHP and “Clean fossil” electricity
• Reason for introduction:
 present demand oriented scheme ran
out of hand (massive green electr. Imports)
 poor development of RE in NL
harmonise with RE schemes in other
EU-member states
directoraat-generaal voor energie
RE Schemes in EU in 2003
Feed-in tariff / green prices
supply
Germany, Austria, Spain,
Portugal, Greece, Finland,
France, Netherlands
Sweden, Denmark
Tender
Ireland
France (wind)
Obligation for producers
Italy
demand
directoraat-generaal voor energie
Price support
of the demand
Obligation (%) for
consumers or suppliers
Netherlands
UK, Austria (small hydro)
Belgium
price
quantity
MEP scheme (2)
•inspired on German EEG scheme
•budget € 258 m (2003) tot € 316 m (2006)
•RES € 141mln, CHP 94 mln, CF 23 mln
•10 year contract with fixed kWh subsidy
•Every NL electricity connection pays 34 €
•100% compensated in REB energy tax
•Start MEP foreseen in July 2003
directoraat-generaal voor energie
MEP scheme (3) kWh subsidies:
•Wind on land 4,9 €ct/kWh (max. 18000 hr)
•Wind offshore 6,8 €ct/kWh
•Biomass co-firing 4,8 €ct/kWh
•MSW + mixed biomass streams 2,9
€ct/kWh (only biomass comp.)
•Hydro + solar-pv 6,8 €ct/kWh
•CHP 0,57 €ct/kWh
•Clean fossil electricity 6,8 €ct/kWh
directoraat-generaal voor energie
Eligibility of RE imports
•Imports are eligible under REB 36i (fiscal
demand subsidy). Restrictions:
Hydro electricity and MSW are exempted
No foreign subsidy
Biomass co-firing must meet NTA 8003
Electricity must be imported physically
PM: reciprocity?
directoraat-generaal voor energie
Guarantees of origin
•Present green certificate system is
transferred into GOO system
•We will comply with planning in EC
directive (Oct. 26, 2003)
•We are presently investigating
consequences for import green electricity
(refuse certificates from non-complying
countries?)
directoraat-generaal voor energie
Grid system issues (art 7 RED)
•No priority for RE electricity (for now)
•The MEP law requires Tennet to subsidise
RE electricity at a fixed tariff;
•In practice at this time not many problems
because NL has a dense electricity
network
•Problems may arise with implementation
of wind off shore (6000 MW?)
directoraat-generaal voor energie
Progress RE Targets
•10% in 2020, 5% in 2010 (primary energy)
•9% of RE electricity in 2010 (RED)
•Results in 2001: 1,2% primary energy,
2,8% electricity (almost 10% when imports
were included)
•Prospects 2010-2020: 10% of primary
energy can be done, but with 1-2% imports
•priority on wind (off shore) and biomass
directoraat-generaal voor energie
Dutch Climate Policy
•reduction target 2008-2012: -6% from
1990 levels
•40 Mton a year
•50% flexible mechanisms: JI and CDM
•Extra: EU emission trading directive
directoraat-generaal voor energie
Dutch JI Programme
•Budget: € 34 mln per year
•government purchases ERU’s
Four tracks
1. ERUPT
2. multilateral financial institutions
3. private banks
4. bilateral agreements
directoraat-generaal voor energie
1. ERUPT
•public procurement for private companies
status
•ERUPT-I and -II: max 9 Mton
•price: € 5-9/ton
•ERUPT-III: selection phase
directoraat-generaal voor energie
2. Multilateral Financial
Institutions
•Participation in Prototype Carbon Fund
•Negotiations to sign contracts with EBRD
and Worldbank to deliver emission
reductions (expected: summer ‘03)
directoraat-generaal voor energie
3. Private banks
•Contract private banks to sell emission
reductions from projects in their portfolio
•Banks will be selected through public
procurement (expected: summer ‘03)
directoraat-generaal voor energie
4. Bilateral agreements
•Interesting option, but may be superseded
by ET directive
•Credits have to be project-related (no “hot
air”)
directoraat-generaal voor energie
EU Emissions Trade Directive
•Start in 2005 (-2007 and 2008-2012)
•Direct CO2-emissions only
•Participating sectors: electricity prod.+
CHP installations > 20MW , steel industry,
chemistry, paper  50% of Dutch CO2emissions
•‘Grandfathering’ of allowances by National
allocation plans
directoraat-generaal voor energie
ET scheme and electricity
•Electricity production sector major player
in emissions allowance market
•Electricity sector charges customer for
extra marginal costs allowances
•Grandfathering implies a subsidy to
electricity producers
•With allowances of 5 euro, electricity price
increases 7%
•Change in merit order electricity
production
directoraat-generaal voor energie
ET scheme and renewable
energy
•Renewable electricity shifts in merit order
• Position renewables improved by scheme
•Estimated allowance prices (5 - 20 euro)
not high enough to make renewables
profitable
•No need anymore to support renewables
from perspective of climate change policy
•Other policy goals may ask for extra
instruments to support renewables
directoraat-generaal voor energie
More info
www.emissionstrading.ez.nl
www.ji.ez.nl
www.cdminfo.nl
Thank you
directoraat-generaal voor energie