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Wind energy policy in the Netherlands

General
The Dutch renewable energy support scheme, SDE, is operational since April 2008. For each category of renewable energy, the SDE sets a base rate making use of a private-sector financial analysis, given the duration of the subsidy. The feed-in premium varies as a result of annually determined correction values corresponding to the revenues from electricity (or heat) sales on the market. In other words, the annual SDE feed-in premium is equal to the base rate minus the electricity (or heat) price. This is the major difference between the SDE and the previous feed-in support scheme, MEP, as the latter was based on a fixed premium. Other important differences are that the SDE also includes green gas and (starting in 2012) renewable heat, and that the budget for renewable categories is capped.

In 2008, the Ministry of Economic Affairs introduced a new support scheme: the programme 'Duurzame warmte' (sustainable heat), to stimulate installation of solar water heaters, heat pumps, and micro-CHP in approximately 70,000 households. The scheme applies to existing dwellings (built before 1 January 2008) and targets private owners and social housing associations. In February 2011, this programme was discontinued due to budget reductions.

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). The 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 photovoltaic power 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: wind power
In 2010, three major wind farms have been awarded SDE subsidy. The wind farm Noordoostpolder (NOP) near Urk will have 38 turbines  placed on land and 48 turbines in the lake IJsselmeer. It will have a capacity of 450 MW and generate 1.4 billion kWh per year. Almost 1 billion Euro of subsidy has been awarded: 880 million Euro as a regular subsidy and up to 116 million Euro due to the innovative character of the wind farm.  Construction will start in 2012 and the wind farm will be operational in 2014. The wind farm has experienced considerable local protest.
 
An offshore wind tender has resulted in funding allocated to ZeeEnergie C.V. and Buitengaats C.V., both part of the German group BARD. The construction of the two offshore wind parks with a total power output of 600 MW should start before August 1st, 2013. As part of this tender, a third offshore wind farm of 129 MW is to be built by Eneco. Therefore, the combined capacity of the three offshore wind farms of the tender (round 2) will be 729 MW. The aggretated feed-in premiums needed for these wind farms amount to 5.3 billion Euro.
 

In March 2012, the new SDE+ scheme will be opened. The new scheme has, like the old SDE scheme, an annual budget ceiling. The opening of the SDE+ will take place in different phases. Therefore, the wind developers will have the choice between obtaining a high rate base (about 9.6 ct/kWh) or a lower rate base (9.0 ct/kWh). The high subsidy rate has a higher rejection risk as a result of budget overrun. The total subsidy available for the SDE in 2012 is expected to amount to 1.5 billion Euro.
 
The base rate for onshore wind is 9.6 ct/kWh, based on 2200 full-load hours per year, while the reference electricity price is 5.1 ct/kWh. The period covered by SDE subsidy for onshore wind is 15 years.

In 2010 a new sub-category has been defined for onshore wind turbines larger than 6 MW. The rate base for wind turbines larger than 6 MW is also 9.6 ct/kWh, based on 3000 full-load hours.

Future programme changes expected
No changes expected.

Sources
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

S.M. Lensink et al: Bindadvies basisbedragen 2011 voor elektriciteit en groen gas in het kader van de SDE-regeling, ECN/KEMA, ECN-E--10-082, September 2010, http://www.http://www.ecn.nl/docs/library/report/2010/e10082.pdf

Minister van Economische Zaken, Landbouw en Innovatie: Regeling aanwijzing categorieën duurzame energieproductie 2011. Staatscourant, nr. 60, 1 juni 2011, https://zoek.officielebekendmakingen.nl/stcrt-2011-9424.html (accessed January 2012)

Tweede Kamer 2009-2010, 31239, nr. 76, KST137617: Stimulering duurzame energieproductie; Brief van de Minister van Economische Zaken, 23 November 2009

Tweede Kamer 2011-2012: Stimulering duurzame energieproductie; Brief van de Minister van EL&I over Openstelling SDE+ 2012, 3 November 2011

Tweede Kamer 2011-2012: Stimulering duurzame energieproductie; Brief van de Minister van EL&I over Openstelling SDE+ 2012, 23 december 2011


Regeling windenergie op zee 2009, Staatscourant Nr. 17851, 24 November 2009, http://www.senternovem.nl/duurzamewarmte (accessed April 2009)

Ministry of Economic Affairs: Verhagen kent eenmalige subsidie windmolenpark Noordoostpolder toe, 2010, http://www.agentschapnl.nl/nieuws/verhagen-kent-eenmalige-subsidie-windmolenpark-noordoostpolder-toe (accessed January 2012)

Eneco: Eneco builds innovative offshore wind farm, November 2011, http://corporateuk.eneco.nl/News_and_Media/pressreleases/Pages/Eneco-builds-innovative-North-Sea-windfarm.aspx (accessed January 2012)

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 (accessed 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 (accessed December 2010)

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Last update: January 2012



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