Wind power 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 Electricity: wind
The three main regions in Belgium are discussed consecutively.

Wallonia 

The target of the Walloon government is to reach 370 GWh from wind turbines in 2010.

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. The average certificate price in  the Walloon region was slightly below 90 euro. For offshore wind the guaranteed minimum price is determined at the federal level and amounts to 107 EUR/MWh for parks below 216 MW and 90 EUR/MWh for parks larger than 216 MW.

Flanders

The target of the Flanders government is to reach 900 GWh from wind turbines in 2010 (approximately 450 MW).

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 EUR/ certificate. The average market price for certificates remained relatively stable during 2007 compared to previous years: between 108 and 110 euro. Also in the year 2008 the price varied between 105 and 110 euro.

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.

A guaranteed minimum price in the green certificate scheme is in place. For onshore ind in the Flemish region this is 90 EUR/certificate. For offshore wind the guaranteed minimum price is determined at the federal level and amounts to 107 EUR/MWh for parks below 216 MW and 90 EUR/MWh for parks larger than 216 MW.

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 euro.

The Decree of 27 March 2009 on the adaptation of the Regional Planning Decree allows for wind turbines in rural areas to be authorised directly, i.e., without a spatial implementation plan (ruimtelijk uitvoeringsplan).

A measure is in place on support for ecological investments (ecologiesteun): companies can benefit from a premium for investments in the production of energy from renewable energy sources. For small and medium-sized enterprises, the subsidy is at most 40% of the admissible additional costs, and at most 20% for large enterprises. The allowed additional costs vary according to technology and amount to 10% for wind energy (larger than 1.5 MW)

Brussels

No certificate system and no specific support for wind energy.

Federal level
The federal regulation provides for a supplementary support measure for offshore wind parks called 'production deviation', aiming at supporting parties responsible for maintaining the grid balance with the presence of an offshore wind park. This 'production deviation' mechanism for offshore wind energy requires the system operator to compensate, by sale or purchase, the difference between the notified injection (announced the previous day) and the actual injection (up to a production deviation of 30%). The federal Authority contributes to the financing of connection costs for offshore wind parks: the transmission system operator is obliged to finance one third of the costs of the submarine cable up to a maximum amount of EUR 25 million for a project of 216 MW or more. If the project involves less than 216 MW, the financial contribution of EUR 25 millions is reduced proportionally. Companies benefit from a tax deduction for certain investments in renewable energy. The tax deduction rate lies between 13.5% and 20.5% depending on the average development of the consumer price index.

For offshore wind the guaranteed minimum price amounts to 107 EUR/MWh for parks below 216 MW and 90 EUR/MWh for parks larger than 216 MW.

Future programme changes expected

The Belgian NREAP mentions several initiatives currently under consideration. For the Walloon region the update of the 'reference framework for the establishment of wind turbines' (Cadre de Référence pour l’implantation des éoliennes) might address the question whether a strategy for installing wind turbines can be established, notably by (a.) applying a 'first come, first served' principle by determining selection dates for competing projects at fixed intervals and (b.) compiling a list of suitable sites for the setting up of wind turbines requiring a specific action by public authorities. Moreover, in order to streamline the process of handling of applications for the different permits, a one-stop shop within the frame of Directive 2006/123/EC is currently under consideration. The Brussels Capital Region is considering simplified granting procedures for environmental permits for small-scale wind turbines and hydro power or geothermal installations as well as for small scale biomass installations.



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)

ODE-Vlaanderen, de Organisatie voor Duurzame Energie Vlaanderen, http://www.ode.be (sourced January 2009)

Commission wallonne pour l'Energie, http://www.cwape.be (sourced January 2009)

Commission Energy 2030, Belgium's Energy Challenges Towards 2030, final report, June 2007, http://www.ce2030.be

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
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Last update: January 2011

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