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Solid biomass in the 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 and heat : solid biomass

The SDE subsidy ceiling in 2009 for renewable electricity from biomass is M€ 550 and relates to the following biomass-related options:

The period covered by the SDE subsidy for biomass-based combustion options is 12 years. The fixed reference price for solid and liquid biomass-based combustion options is within the range of 11.5 (at a heat utilisation coefficient of zero MJ/kWh) and 15.6 (at a heat utilisation coefficient of 4.0 or higher MJ/kWh) €c/kWh. The base electricity price is set at 4.4 €c/ kWh.

Future programme changes expected
No changes expected.

Sources
Dutch Ministry of Economic Affairs: Regeling aanwijzing categorieŽn duurzame energieproductie 2009. Staatscourant (nr. 60), 27 maart 2009

van Tilburg et al., Technisch-economische parameters van duurzame energieopties in 2009-2010; Eindadvies basisbedragen voor de SDE regeling, ECN-E--08-090, December 2008

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

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: December 2010


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