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Title:
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Can Dutch co-generation survive threats of the liberalisation of the energy markets?
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Author(s):
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Published by:
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Publication date:
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ECN
Policy Studies
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1-7-2000
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ECN report number:
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Document type:
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ECN-RX--00-027
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Conference Paper
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Number of pages:
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Full text:
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18
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Download PDF
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Presented at: 7th annual international conference, 'Managing the future growth of co-generation in Europe', Berlin, Germany, 22-23 mei 2000.
Abstract:
The paper presents an analysis of the effects of liberalisation of theDutch energy markets on the future development of combined heat and power
generation (co-generation) in the Netherlands. First, it reviews the
historical growth in co-generation in the Netherlands and the supportive
policy measures that have contributed to this growth. Second, the
liberalisation process of the Dutch electricity market and the Dutch gas
market is described. Subsequently, we discuss the impacts of these new market
structures on co-generation by using two scenarios for the Dutch energy
markets. Our assessment of the impacts is mainly focused on the
cost-effectiveness of co-generation projects. We determine the key aspects
that influence the cost-effectiveness of a co-generation project and analyse
some of the calculations for different small-scale and large-scale
co-generation projects. Based on the results, we conclude that investments in
new co-generation plants are unlikely in the short term and the existing
plants can barely produce with a positive cash flow. As many parties have an
interest in reducing the negative effects of a liberalised energy market on
co-generation, approaches are sought to improve the cost-effectiveness of
co-generation in the Netherlands. We describe several optional supportive
measures for co-generation mainly resulting from the determination of the
barriers for co-generation. Moreover, Dutch authorities have already
responded to these barriers by preparing policy measures such as investment
subsidies and exemption from the energy tax. 2 refs.
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