1. Energy opportunitiesEnergy opportunities
in the Netherlandsin the Netherlands
European Power Generation StrategyEuropean Power Generation Strategy
SummitSummit
Prague, 30 November 2011Prague, 30 November 2011
Weero KosterWeero Koster

2. Table of ContentsTable of Contents
 Characteristics of the Dutch energyCharacteristics of the Dutch energy
marketmarket
 Dutch energy policyDutch energy policy
 Developments on the Dutch energyDevelopments on the Dutch energy
marketmarket
 Main subsidy schemesMain subsidy schemes

3. Characteristics DutchCharacteristics Dutch
energy marketenergy market
Production
2008
Production
2010
Consumption
2008
Consumption
2010
Electricity 104 TWh 128,8 TWh 99 TWh 109,4 TWh
Gas 80 billion m3
83,9 billion
m3
41,4 billion
m3
51,9 billion m3
Heat 37 PJ 49 PJ 37 PJ 41,7 PJ

4. Characteristics Dutch energyCharacteristics Dutch energy
marketmarket
 Electricity productionElectricity production
 large scale generation companies (Electrabel, E.On,large scale generation companies (Electrabel, E.On,
Essent, Nuon and EPZ)Essent, Nuon and EPZ)
 small de-central plantssmall de-central plants
 only 2,5% is imported (compared to 15-20% prior to 2009)only 2,5% is imported (compared to 15-20% prior to 2009)
 Gas productionGas production
 Groningen field and small fieldsGroningen field and small fields
 huge export of exporthuge export of export
 HeatHeat
 Electricity production and waste industryElectricity production and waste industry

5. ElectricityElectricity
networknetwork

6. Emden
Oude Staten-Zijl
Julianadorp
Vlieghuis
Winterswijk
Zevernaar
Bocholtz
‘s Gravenvoeren
Hilvarenbeek
Obbicht
Zandvliet
Zelzate
Gas networkGas network

7. Dutch energy policyDutch energy policy
 Coalition agreementCoalition agreement ““Balkenende IVBalkenende IV”” ––
goals for 2020:goals for 2020:
 30% less greenhouse gases30% less greenhouse gases
 20% share of sustainable energy20% share of sustainable energy
 annual energy savings rate of 2%annual energy savings rate of 2%
 Dutch energy policyDutch energy policy
 14% renewable energy production in 202014% renewable energy production in 2020
 20% CO20% CO22
-emission reduction compared to 1990-emission reduction compared to 1990

8. Dutch energy policyDutch energy policy
 Clean and Efficient policy plan appearsClean and Efficient policy plan appears
not far-reaching enough and goals fornot far-reaching enough and goals for
2020 would not be reached2020 would not be reached
 Fundamental transition towards climateFundamental transition towards climate
neutral economy in 2050 -neutral economy in 2050 - Climate LetterClimate Letter
20502050

9. Third Energy PackageThird Energy Package
 Third Energy Package – 3 options for network operatorsThird Energy Package – 3 options for network operators
per 2011per 2011
Ownership
unbundling (OU)
Independent
Transmission System
Operator (ITO)
Independent
System Operator
(ISO)
Owns/manages
network
Independent management Manages network and
investment decisions
Minority shareholding Vertically integrated
undertaking
Vertically integrated
undertaking
Dividends allowed Supervisory body /
Compliance officer
Leases network from
supplier
No control / voting
rights
Heavy regulated and
permanent monitoring by
national regulator
Regulated and
permanent monitoring by
national regulator

10. Developments on the DutchDevelopments on the Dutch
energy marketenergy market
 Electricity Act and Gas ActElectricity Act and Gas Act
 require full ownership unbundling of grid operatorsrequire full ownership unbundling of grid operators
 transfer of all gas transportation grid to Gasunietransfer of all gas transportation grid to Gasunie
 transfer of >110 kV grids to TenneTtransfer of >110 kV grids to TenneT
 Upcoming investments in grids requiredUpcoming investments in grids required
 Discussion on minority privatisation ofDiscussion on minority privatisation of
Gasunie/TenneTGasunie/TenneT
 Position of regional grid operators?Position of regional grid operators?

11. Developments on the DutchDevelopments on the Dutch
energy marketenergy market
 RWE announced to sell its Urenco-stakeRWE announced to sell its Urenco-stake
 OwnershipOwnership
 1/3 UK Government1/3 UK Government
 1/3 Dutch government1/3 Dutch government
 1/3 E.On and RWE jointly1/3 E.On and RWE jointly
 Urenco is managed by the Shareholder ExecutiveUrenco is managed by the Shareholder Executive
 UK government is also considering selling its stakeUK government is also considering selling its stake
 Dutch government needs to take positionDutch government needs to take position

12. Developments on the DutchDevelopments on the Dutch
energy marketenergy market
 Nuclear – Borssele plantNuclear – Borssele plant
 owned by DELTA and RWEowned by DELTA and RWE
 lifetime of nuclear plant prolonged until 2033lifetime of nuclear plant prolonged until 2033
 Robustness test on flooding risk, earth quakeRobustness test on flooding risk, earth quake
risk, fire risk and power back uprisk, fire risk and power back up
 Development of Borssele IIDevelopment of Borssele II
 licence DELTAlicence DELTA
 coalition partner: RWE / EdF ?coalition partner: RWE / EdF ?
 permitting procedure to be started in near futurepermitting procedure to be started in near future

13. Developments on the DutchDevelopments on the Dutch
energy marketenergy market
 Governmental support for renewable energyGovernmental support for renewable energy
 Introduction suppliers obligationIntroduction suppliers obligation
 Priority on grid for renewable energyPriority on grid for renewable energy
 SDE+SDE+
 SDE+ 2012SDE+ 2012
 EUR 1,7 bln availableEUR 1,7 bln available
 stimulation of innovative energy sources which are economicallystimulation of innovative energy sources which are economically
unviableunviable
 thermal conversion biomass, near shore wind, offshore wind,thermal conversion biomass, near shore wind, offshore wind,
solar pv (>15 kWp), geothermal, and osmosissolar pv (>15 kWp), geothermal, and osmosis
 2013 SDE+ will be paid by energy consumers2013 SDE+ will be paid by energy consumers
through a top up charge on the energy billthrough a top up charge on the energy bill

14. Developments on the DutchDevelopments on the Dutch
energy marketenergy market
 Green deals Dutch governmentGreen deals Dutch government
 sustainable initiatives in energy, water,sustainable initiatives in energy, water,
commodities or mobility fieldcommodities or mobility field
 economically viableeconomically viable
 lead to new economic activities or cost reductionlead to new economic activities or cost reduction
for companiesfor companies
 e.g. smart cars / grids / citiese.g. smart cars / grids / cities
 Draft regulation for mandatory biomass fuelDraft regulation for mandatory biomass fuel
mixmix

16. Growth renewableGrowth renewable
energyenergy

17. Alternative energyAlternative energy
sourcessources
 green / biogasgreen / biogas
 4 licences for exploration activities scale4 licences for exploration activities scale
gasgas
 solar and tidalsolar and tidal
 offshore and onshore windoffshore and onshore wind
 wind in lakeswind in lakes

18. Main subsidyMain subsidy
schemesschemes
SDE+ Subsidy for electricity producers
EIA Net tax reduction of up to 40% from taxable profit upon
energy-efficient equipment of renewable technology for
lifetime of investment
VAMIL Tax scheme which provides for freedom of choice for rate
and timing of depreciation of environmental investments
MIA Tax relief of up to 40% from taxable profit for entrepreneurs
that invest in environmental friendly /improved equipment
Green
investment
Tax incentive scheme for green projects that benefit nature
and environment
SMOM Scheme for NGOs for development of environmental and
sustainable initiatives
ProMT Subsidy for MKB to encourage development and application
of innovative processes
WBSO Tax incentive scheme for innovation and promotion of
research