The Netherlands are to boost the growth of renewable energy industry
The main aim of the European Union energy policy is to replace the use of fossil fuels in order to reduce greenhouse gases emission and cut expenses. In this case, the European countries are transforming their energy generation systems by using alternative energy sources.
The Dutch energy industry remains inefficient
However, when it comes to the Netherlands, for instance, this country is considered to fail in terms of conducting a new energy policy. According to the European Environmental Agency, the Netherlands along with Luxembourg are following the only one out of the three key energy areas: energy efficiency, renewable energy and reduce of greenhouse gases emission. The Dutch government is trailing in the last one.
What is more, the Dutch energy production is known to have become even dirtier during the last three years, while the rest of the European countries did their best to make their electricity supply cleaner. The Netherlands, however, have increased the use of coal by 5 per cent in comparison with 2013. This figure increased, consequently, from 24 to 29 per cent.
Several Dutch environmental and consumer organizations provide the annual ranking of renewable energy suppliers in terms of efficiency. It is curious, that the biggest Dutch energy providers appeared at the bottom of the list. It means that they are extremely inefficient.
The Netherlands are to increase renewables funding
There are two main reasons for such situation: a lack of renewable energy funding and low prices for coal. In this case, the Dutch government will launch an extended financial support in order to boost this sector growth.
The funding will be provided in accordance to the SDE+ subsidy scheme in two rounds. Both of them will have the same budget totaling €4 billion. It means that the annual budget equates €8 billion, while in 2014 this figure amounted €3.5 billion.
The SDE+ scheme was offered by the Minister of Economic Affairs in order to reach 14 per cent share of renewable energy by 2020 and 16 per cent by 2023 by using solar, wind, geothermal and biomass power sources.
Initially, production of renewable energy requires sufficient amount of investments, since the price for fossil fuels is lower. It means that this industry is not always profitable. Nevertheless, the use of renewables is the only possible way to prevent the extended emission of greenhouse gases. In this context, the SDE+ scheme is to boost the growth of renewable energy generation.
The funding of renewable energy industry is limited
The target audience for this scheme consists of companies, institutions and non-profitable organizations. At the same time, this program is not available for private energy producers.
However, the problem is that the limited number of renewable project applications are to be approved in order to get additional funding. For instance, there are two large energy companies, French utility Engie and German utility RWE, which have already applied for funding this year.
Nevertheless, both applications were declined. Though the budget of the SDE+ scheme was increased, it is still not enough to provide all the energy suppliers with appropriate funding.
Two ways how to boost the growth of renewable energy industry
This problem can be solved in two ways. The first one is to provide additional funding totaling €12.8 billion during the next seven years. This figure is 22 per cent more than the current provision of funding.
Another possible way to address this issue is to launch the SDE+ scheme in other European Union countries. In this case, an additional funding remains required, however this sum will amount approximately €3.5 billion.
In summary, the Netherlands remain one of the biggest environment polluters in the European Union, as its energy production becomes dirtier. In this case, the Dutch government introduced the SDE+ scheme, which aims to provide energy suppliers with an additional funding. It will give an opportunity to reduce make this industry cleaner and reach the goals of the European energy strategy.
