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Photovoltaic energy in Netherlands

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.

Renewable electricity: PV
In the period before 2007, the feed-in premium for PV under MEP was capped at 9.7 €ct/kWh, a value that for PV is not competitive. In the new SDE scheme, the tariff for PV is significantly higher than before. The volume of eligible PV systems however is capped until the year 2011. In 2008, a PV capacity of 4.4 MW was installed, in 2009 10.7 MW, and in 2010 an estimated 29.4 MW (a figure that may change due to projects that have not been realized or projects that have been realized without SDE subsidy). This figure of 29.4 is based on Internet Source 1. The cumulative PV capacity by the end of 2010 amounts to 97 MW.

For 2008 PV systems with a capacity of 0.6 to 3 kW were supported. The reference tariff in 2008 was fixed at 56.4 €ct/kWh, which was to be corrected by avoided end-user power purchase prices.

In 2009, two categories were used for PV systems:
In 2010, two slightly different categories were used for PV systems:
In 2010, the maximum available subsidy for PV was EUR 93 million.

In 2009, a PV capacity of 10.9 MWp was realized, and in 2010 an estimated 29.4 MW (based on data from Certiq). This brings the cumulative PV capacity in 2010 at 97 MW (a figure that just like the capacity realized in 2010 may be changed due to PV systems not realized or systems realized without SDE subsidy).

There are several low-interest loans available through green funds, which are exempt from income tax. Projects are eligible for a green fund only if they have received a green statement from the responsible authority. The minimum loan sum is 22 thousand € and the  maximum is 34 M€. The maximum loan period is 10 years. Most renewable energy projects are eligible, amongst others PV and onshore wind, but not offshore wind. Biomass is restricted to clean wood and energy crops. Information about green funds is provided by
SenterNovem http://www.senternovem.nl/groenbeleggen/index.asp.

Very recently, an initiative called 'Wij Willen Zon' developed a plan to install PV panels without SDE subsidy as SDE subsidy will not be eligible for PVto be installed in 2011 (Internet Source 2). 'Wij Willen Zon' was able to secure a relatively large PV capacity for their customers with a reported discount of 35%.

Future programme changes expected
No changes expected.

Sources
Dutch Ministry of Economic Affairs: Regeling aanwijzing categorieën duurzame energiepro-ductie 2000. Staatscourant (nr. 44 / pag. 8), 3 maart 2008

Tilburg, X. van; Cleijne, H.; Pfeiffer, E.A.; Lensink, S.M.; Mozaffarian, M.; Wakker, A. Tech-nisch-economische parameters van hernieuwbare elektriciteitsopties in 2008-2009. Eind-advies ten behoeve van de SDE regeling, ECN-E--08-003, http://www.ecn.nl/publications, February 2008

Tilburg, X. van; Lensink, S.M.; Londo, H.M.; Cleijne, J.W.; Pfeiffer, E.A.; Mozaffarian, M.; Wakker, A., Burgers, J; Technisch-economische parameters van duurzame energieopties in 2009-2010. Eindadvies basisbedragen voor de SDE-regeling, ECN-E--08-090, http://www.ecn.nl/publications, December 2008

Kamerstuk 2008-2009, 31239, nr. 42, Tweede Kamer KST127089: Stimulering duurzame energieproductie; Brief minister over realisatie SDE 2008 (stand 9 januari 2009), 15 January 2009

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 and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Entry into force on June 25th, 2009), download from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

Renewable energy policy; country profiles (Re-Shaping). Based on information available in October 2009, http://www.reshaping-res-policy.eu, 2009

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 (sourced December 2010).

Internet Source 1: http://www.certiq.nl/Images/2010%20Jaaroverzicht_tcm27-19809.pdf (sourced April 2011)

Internet Source 2:  http://www.wijwillenzon.nl/ (sourced May 2011)

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