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ECN publication
The Dutch renewable electricity market in 2003. An overview and evaluation of current changes in renewable electricity policy in the Netherlands
Published by: Publication date:
ECN Policy Studies 1-4-2003
ECN report number: Document type:
ECN-C--03-037 ECN publication
Number of pages: Full text:
26 Download PDF  

Since the opening of the Dutch retail market for renewable electricityin July 2001 the number of renewable electricity customers has increased from about 250,000 to approximately 1.4 mil-lion in January 2003. This surge in the demand for renewable electricity was caused mainly by favourable fiscal incentives for renewable electricity production and consumption and further stimulated the growth of the European green certificate market. However, there were several adverse effects associated with the Dutch support model for renewable electricity. The import of renewable electricity resulted in a considerable loss of tax revenues, while not effectively stimu-lating additional investments in the Netherlands or elsewhere. These adverse effects caused the government to review its renewables policy and subsequently led to the proposal of a new sup-port mechanism in November 2002. This report describes the recently adopted policy changes. Finally, the new support mechanism is evaluated in the light of its stated policy objectives and the future harmonisation of the European renewable electricity market.

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