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“CODE meeting April 28”. National support mechanisms in the Netherlands. WK Platform (Co-generation Platform) Peter Steenbergen www.cogen.nl. Content. Co-generation in the Netherlands Investment support (EIA) Exploitation support (SDE) Grid charges Energy tax exemptions ETS.
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“CODE meeting April 28” National support mechanisms in the Netherlands WK Platform (Co-generation Platform) Peter Steenbergen www.cogen.nl
Content • Co-generation in the Netherlands • Investment support (EIA) • Exploitation support (SDE) • Grid charges • Energy tax exemptions • ETS
Investment support • Energie Investerings Aftrek (EIA) • Tax credit: extra depreciation • 44% of the investment sum • Company tax rate 25,5% • Effectively: 44%*25,5% = 11,22% • Minimum “Senter-efficiency”:2/3 heat efficiency + electrical efficiency
Exploitation support (SDE) Part of the subsidy arrangement for renewables For who? • Only CCGT • Installed capacity at least 150 MWe • H/P-ratio at least 0,6 at max heat production • Primary energy savings at least 10% • Natural gas fired (at least 90%) • Heat for industrial use (at least 90%) • Green field Who is left???
Features SDE • Covers 100% of the Onrendabele Top (OT), “guarantees” 7% ROE • 12 years • Remuneration adjusted every year on the basis of actual forward energy prices (electricity, natural gas en CO2) • Maximum remuneration • Only applicable to CHP-electricity according to EU directive
Features SDE (2) • Tender procedure • Available € 168 mln in 2010 for 12 years • € 14 mln/year • Potentially enough for 250 MWe Idle hope for extension to other categories
Grid charges • Special (lower) grid charges at higher voltage levels for back-up power (< 800 h) • No kWh or capacity charges, neither for co-generators nor for electricity producers • Arrangement for avoided grid lossesended because of lack of sufficient legal basis
Energy tax exemptions • Electricity, for own use • From renewables • From CHP – “Senter efficiency” > 60%Senter: e-efficiency + 2/3 heat efficiency • Natural gas • Electricity generators • Electrical efficiency > 30% (en >60 kW) • No comparative advantage for CHP
Energy tax on natural gas • Tax rates in 2010 (in ct/m3) • 0 - 5.000 m3 16,29 • 5.000 – 170.000 m3 14,11 • 170.000 – 1 mln. m3 3,91 • 1 – 10 mln. m3 1,24 • > 10 mln. m3 0,82 • 1 m3 = 35,17 MJ (HHV) = 9,77 kWh • Per grid connection per year
Energy tax on electricity • Tax rates in 2010 (in ct/kWh): • 0 - 10.000 kWh 11,14 • 10.000 – 50.000 kWh 4,06 • 50.000 – 10 mln kWh 1,08 • > 10 mln 0,05“benchmark companies” 0,00 • Per grid connection per year
ETS • Small advantage in ETS II • ETSIII ???????????
Present situation • No big stimuli in The Netherlands for co-generation • Although acknowledgement of big contribution to energy savings and CO2-emission reduction • Co-generation only a marginal business, growth purely in horticulture
? Cogen Nederland Peter Steenbergen Peter.steenbergen@cogen.nl www.cogen.nl 06-51064603