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Netherlands Biogas

General
The new Dutch renewable energy support scheme, SDE, has been operational since April 2008. Per category, the SDE sets a fixed reference price based on the average production costs, given the duration of the subsidy. The actual feed-in premium varies as a result of annually determined correction values that correspond to the possible revenues of electricity sales on the market. In other words, the annual SDE feed-in premium would be equal to the fixed reference price minus the yearly set correction value. This is the major difference between SDE and MEP, the previous Dutch feed-in support scheme, as the latter was based on a fixed feed-in premium. Another important difference between these two support schemes is the definition of an annual subsidy ceiling for new projects per category.

As of September 2008, a new financial support scheme is in operation: the programme 'Duurzame warmte' (sustainable heat), announced by the Ministry of Economic Affairs in June 2008.  The objective of this subsidy scheme is to stimulate the installation of solar water heaters, heat pumps, and micro-CHP in approximately 70,000 households. The scheme applies to existing dwellings only (built before 1 January 2008) and targets private owners and social housing associations. In the period up to 31 December 2011 a total budget of  M€ 66 is available.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for the Netherlands is 14% (in the year 2005 the share was 2.4%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for the Netherlands
The National Renewable Energy Action Plan (NREAP) for the Netherlands was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 14% for the year 2020 and the projected NREAP share in that year is 14.5%.  According to the projection, the most important contribution in the year 2020 is expected from wind power (32.4 TWh or 2787 ktoe, 38% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (1520 ktoe, 21% of all renewable energy). The third largest contribution is from biomass (renewable electricity) (16.6 TWh or 1431 ktoe, 19% of all renewable energy). Wind power contributes with 11.2 GW (32.4 TWh) in the year 2020 (onshore wind 6.0 GW and 13.4 TWh, offshore wind 5.2 GW and 19.0 TWh). For solar photovoltaic the 2020 contribution is projected to be 0.7 GW (0.6 TWh). For solar thermal the 2020 contribution is projected to be 23 ktoe. The two most important biofuels are projected to contribute 552 ktoe (biodiesel) and 282 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 12.0 TWh (1030 ktoe) and for biogas it is expected to be 4.7 TWh (401 ktoe). The consumption of renewable heat is expected to amount to 650 ktoe for solid biomass and 288 ktoe for biogas. A contribution of 582 ktoe is expected from bio-methane for grid feed-in by the year 2020.

Biogas-to-electricity
According to the National Renewable Energy Action Plan (NREAP) for the Netherlands the contribution of electricity from biogas amounts to 872 GWh (216 MW) in the year 2010 and 4664 GWh (639 MW) in the year 2020. In energy terms, this represents an average annual growth of 18% per year (11% per year in capacity terms). The renewable heat from biogas is projected to amount to 111 ktoe in the year 2010 and 288 ktoe in the year 2020 (representing an average annual growth of 10% per year).

Within SDE an apart category is defined for electricity production from landfill gas and biogas from waste water treatment installations (sewage and industrial waste water). The 2010 subsidy ceiling for this category is €13 millions. The reference price for gas from this category is set at 5.9 €ct / kWh. Another category concerns electricity production based on biogas from co-digestion of animal manure, biogas from VFG (vegetable, fruit and garden waste), biogas from digestion of other organic residues/wastes (specially residues from the food industry), and biomass combustion with an electrical power less than, or equal to 50 MW. The subsidy ceiling for this category in 2010 is €400 millions. The reference price for co-digestion of manure is 0.165-0.193 €ct / kWh, for VFG digestion 0.129-0.149 €ct / kWh, and for the remaining digestion options 0.158 €ct / kWh, for the duration of 12 years. In cases that the reference price is given as a range, it increases at increased heat utilisation.

Biogas-to-green gas
The 2010 subsidy ceiling for the category green gas production from landfill gas and biogas from waste water treatment installations (sewage and industrial waste water) is €24 millions. The reference price for green gas from this category is set at 21.8 €ct /Nm3. The subsidy ceiling for the category green gas from biomass (co-digestion of animal manure, VFG, and the remaining digestion options) is €190 millions. the reference price for co-digestion of manure is 63.5 €ct / Nm3, for VFG digestion 46.5 €ct / Nm3, and for the remaining digestion options 58.3 €ct / Nm3, for the duration of 12 years.

Future programme changes expected
No changes expected.

Sources
ECN database on National Renewable Energy Action Plans (NREAPs), data for the Netherlands, http://www.ecn.nl/nreap, October 2010

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, http://ec.europa.eu/energy/renewables/transparency_platform_en.htm

MR aanwijzing categorieen duurzame energieproductie 2010, SenterNovem: http://www.senternovem.nl/sde/sde_nieuwsbrieven/sde_nieuwsbrief_nr_8_januari_2010_webversie.asp , January 2010

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: December 2010



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