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Photovoltaic energy in Belgium

General
In the strongly regionalized state of Belgium a distinction can be made between federal policy and regional policy regarding renewable energy sources (RES). The incentive schemes for RES are most dominant at the regional level, while on the federal level the RES policy is imposed in more general terms. Attention for energy saving activities exists at both levels. For electricity, the green certificate trading and quota system has been implemented for both Flanders and Wallonia. The certificates can be traded at regional level or at federal level. The three regional energy agencies are: VIREG (Flemish Region), DGTRE (Walloon Region) and IBGE (Region of Brussels Capital). The main renewable contribution in the Belgian energy mix comes from combustible renewable biomass and waste sources. 

In both regions there is a fast growing electricity generation coming from wind energy. Brussels-Capital has, because of its limited surface and electricity generation capacity, very limited renewable energy facilities, being mainly solar thermal demonstration projects. The tradable certificates schemes established by the Federal Authority and the Belgian regions can be summarised as follows. In the case of offshore wind energy, there is an obligation of the transmission system operator (Elia) to buy the certificates at a minimum price set by federal legislation and an obligation of sell these certificates on the regional markets. In the case of the Flemish Region and the Walloon Region, the combination of compulsory quotas imposed on suppliers and on minimum feed-in price guarantees imposed on the DSO (Flemish Region) or on the LTSO (Walloon Region) are in place. In the case of the Brussels Capital Region, the obligation is imposed on electricity suppliers to observe a certain quota of green certificates.

The system of tradable green certificates knows a number of mechanisms to ensure regular feedback: (a.) in the Flemish Region: A study is carried out every 3 years to estimate the need for exploitation support to ensure the acceptable profitability of projects. The next evaluation is planned for 2012. (b.) in the Walloon Region: Every 3 years CWaPE must carry out a detailed analysis of the technical and economic characteristics of the different electricity production chains. CWaPE also conducts an annual assessment of the functioning of the market in green certificates and compiles projections on the development of new medium-term installations (5 years). (c.) in the Brussels Capital Region a consideration of the functioning of the market in green certificates is planned in 2010 to render investments in large-scale installations using renewable energy sources more easily more profitable.

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 Belgium is 13% (in the year 2005 the share was 2.2%). 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 Belgium

The National Renewable Energy Action Plan (NREAP) for Belgium was submitted in December 2010. The target according to Annex I of Directive 2009/28/EC is 13% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (2034 ktoe, 38% of all renewable energy). Second important contribution is expected from biomass (renewable electricity) (11.0 TWh or 949 ktoe, 18% of all renewable energy). The third largest contribution is from wind power (10.5 TWh or 901 ktoe, 17% of all renewable energy). Wind power contributes with 4.3 GW (10.5 TWh). For solar photovoltaic the 2020 contribution is projected to be 1.3 GW (1.1 TWh). For solar thermal the 2020 contribution is projected to be 199 ktoe. The two most important biofuels are projected to contribute 698 ktoe (biodiesel) and 91 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 9.6 TWh (823 ktoe) and for biogas it is expected to be 1.4 TWh (124 ktoe). The consumption of renewable heat is expected to amount to 1947 ktoe for solid biomass and 55 ktoe for biogas.

Renewable energy projections according to the National Renewable Energy Action Plan for Belgium

The National Renewable Energy Action Plan (NREAP) for Belgium was submitted in December 2010. The target according to Annex I of Directive 2009/28/EC is 13% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (2034 ktoe, 38% of all renewable energy). Second important contribution is expected from biomass (renewable electricity) (11.0 TWh or 949 ktoe, 18% of all renewable energy). The third largest contribution is from wind power (10.5 TWh or 901 ktoe, 17% of all renewable energy). Wind power contributes with 4.3 GW (10.5 TWh). For solar photovoltaic the 2020 contribution is projected to be 1.3 GW (1.1 TWh). For solar thermal the 2020 contribution is projected to be 199 ktoe. The two most important biofuels are projected to contribute 698 ktoe (biodiesel) and 91 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 9.6 TWh (823 ktoe) and for biogas it is expected to be 1.4 TWh (124 ktoe). The consumption of renewable heat is expected to amount to 1947 ktoe for solid biomass and 55 ktoe for biogas.

Renewable electricity: PV

Federal authority: Tax reduction for energy-saving investments granted to individuals (including green loans): In 2010, the tax reduction rate is 40% regardless of the eligible investment under consideration. The annual ceiling is EUR 2,770 except for solar energy installations (photovoltaic and solar thermal), for which the ceiling is EUR 3,600.

Two main regions in Belgium are discussed in more detail.

Wallonia
The producers of certified green electricity receive from the CwaPE green certificates proportional to their electricity production and the reduction of CO2 emissions regarding a value reference for classic installations. The current correspondence for 1 green certificate is 456 kg of CO2 avoided. These certificates can be sold and traded for 5 year from the date of issuing. The fine that Belgian electricity suppliers must pay to Wallonia’s energy authority for each ROC missing at the end of each accounting period is 100€. Producers of renewable electricity are assured a minimum price of 65€/ROC since Wallonia’s energy authority will buy certificates at this price.

Flanders
A similar certificate system to Wallonia’s operates in Flanders, though ROCs are not linked to avoided CO2 emissions but to each unit of renewable energy produced. The Flemish energy authority charges for missing ROCs at 125€/MWh. In the case of Flanders there are indicative data about the effective trade and price of Green Certificates in the market for 2006 . They range between 109 and 114 /certificate. Regarding the certificate system several technical changes have occurred during 2007. Formerly, the obligation for renewable electricity was put at the distribution companies. In this way, industrial clients weren’t touched by the obligation system. From 2007 onwards, they have to fulfill the quota as well. 

The average market price for certificates remained relatively stable during 2007 compared to previous years: between 108 and 110 . In February 2008 the green power quotum was defined by VREG at 4,90% (2.076.119 certificates after adjustments). Previously this was 3.00%. The new quotum resulted in a shortage of almost 15 thousand certificates, equal to a fine of in total more than 45 million .

In the year 2007, the amount of PV installations eligible for certificates has grown considerably, more than doubling the 2006 figures. At the federal level PV installations can benefit from a tax relief of 40% of the investment up to 3440 euro.

With regard to Wallonia and the Brussels region: on websites lists of installers of solar systems (thermal and photovoltaic) are provided, that  have been approved and/or who have undergone recognised training.
Future programme changes expected
No information available.

Sources
Interactive EurObserv’ER Database, 2007

Vlaamse Reguleringsinstantie voor de Elektriciteits- en Gasmarkt (VREG), Marktrapport: de Vlaamse energiemarkt in 2007, http://www.vreg.be/vreg/documenten/rapporten/RAPP-2008-3.pdf (sourced August 2008)

http://www.energiesparen.be/subsidies/subsidieregel_detail?id=1822&verstr=769&doelgroep=1 (sourced August 2008)

http://www.energiesparen.be/subsidies/subsidiemodule (sourced August 2008)

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: March 2011


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