Low Carbon Opportunities for the Netherlands Today

Discussion points from an expert panel on low carbon technology

1. Priority access to the grid for clean energy
Energy generated by renewables, combined heat and power (CHP) and gas fired electricity plants should have priority access to the electricity grid above coal fired and nuclear power production. Laws should ensure cleaner energy producers will not incur extra financial burdens, nor carry the extra costs of the dirty energy generators because of this priority access.

2. A long term guaranteed feed-in tariff for clean energy
A long-term national feed-in tariff would encourage companies an individuals to invest in renewable energy generation by ensuring they will be paid a guaranteed price for selling it back to the grid if they generate more energy than they need. A guaranteed feed-in tariff would also make it easier for companies to take sound decisions on long term investments.

3. A North Sea-‘supergrid’
Working with other EU countries to build a new electricity supergrid in the North Sea which interconnects all off-shore wind parks of seven countries around the North Sea.


4. Availability of sufficient and affordable capital for clean energy projects
The financial crisis means loans are harder to come by and threatens investment in EU clean energy projects. The introduction of easier terms of depreciation to replace inefficient production lines or facilities could help offset this and free up much needed investment.

5. Electric vehicles
Pilot schemes such as that in the city of Leeuwarden must be encouraged. Local government must coordinate various players (energy companies, car companies, new companies offering ‘packages for complete EV solutions for customers’) and implement clear, long-term fiscal incentives to motivate the consumer to actually use electrically powered vehicles. Government can encourage entrepreneurship by shaping the right investment climate through subsidies, co-investments, stimulating standardisation efforts, easy network deployment procedures, creating a level playing field for companies (new and existing) and participating as a launch customer. Government can
also have an impact by increasing prices and/or penalties associated with the production of CO2 and other pollutants.

6. Insulation of existing and new homes and buildings
Insulating existing homes and buildings is one of the most cost effective climate policies, effectively paying for itself in terms of energy saved. The Dutch government can encourage this by implementing tax breaks or subsidy schemes for landlords and home owners who make significant investment in insulation properties (30% energy efficiency improvement). Building companies should also be encouraged to incorporate energy reducing and (renewable) producing measures in new homes and buildings.

7. ‘Green’ the public street lighting
One of the best opportunities for sustainability and energy savings Dutch municipalities and provinces have is to ‘green’ the public street lighting. The costs of replacing older street lamps and armatures in public places is usually paid back within three years due to lower utility bills.

8. VAT-differentiation
At the next Ecofin-meeting, the Dutch government could propose an EU-wide VAT-differentiation, in which renewables (conversion, green power and services) as well as A++ labelled appliances are taxed at a 0% tariff and a 20% VAT-tariff is applied to polluting conversion and appliances.