The Netherlands (urgent and) inspiring energy/climate policy

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1 The Netherlands (urgent and) inspiring energy/climate policy Marion Bakker MSc NL delegate IEA HTP TCP RVO.nl Bron: marktplaats

2 Urgent policy: Phasing-out Gas production Minister Eric Wiebes (Economic affairs and Climate): Due to continuing induced earthquakes, cabinet decided to phase-out gas production Groningen. Complete stop in Implies earlier transition to other gas/sources for heating and production for built environment, companies and countries Signals urgency to make quick start with the energy transition. The new Delta Works 2 WPP Symposium Gent 2018 October 10th

3 The Netherlands energy policy The Agreement on Energy for Sustainable Growth partners: public, private, NGOs 1,5% energy savings annually / 100 PJ by % renewable energy in 2020, 16% in 2023; full-time jobs Energy Report 2015 Goal: near climate neutral in 2050 Focus on CO 2 -reduction energy-report-transition-tot-sustainable-energy Energy Agenda 2016 Netherlands has an economic interest in accelerating the transition Coalition agreement 2017 Post Paris: reflects ambitious emission reduction goals for 2030: 49% -> Climate agreement 2018 Actual status: Parliamentary discussion 3

4 From a straigthforward energy policy to.. 4

5 Renewable energy subsidies Success of the SDE+ feed-in tariff Electricity Heat Renewable gas Cost-effective support scheme: competition for the lowest subsidy Small scale heat? 5 More SDE update?

6 Small-scale renewable heat subsidy (ISDE) Since 2016; 20-40% of upfront costs Heat pumps > 1100 Solar water heaters > 500 Biomass boilers > 2500 Pellet stoves > 500 Total budget 2018: 100 million/year (63 million claimed as of 1 October)

7 Small renewable heat market ready? Acceleration table Small scale renewable heat Cooperation public, private, NGO. RVO coordinator Focus on market ready (barriers), customer journey National (& local) Campaign (TV, social media) Green Deal renewable heat installers (7 centers) Traditional Traditional New campaign

8 Districts without natural gas Coalition agreement: 30,000-50,000 houses without gas/year No natural gas for new houses Existing houses? District-oriented approach District tender (120 million) Municipalities (&grid operators&end-users) Results 1st tranche: 27 allocated Innovation tender (12.8 million) Prototype within 1 year Industry (& knowledge centers) All electric / heat district systems / renewable gas / smart control / new business models / energy storage / tools Source: Minbzk

9 More focus on sustainable heat Heating law Report: CO 2 Primary energy Fraction renewable heat Obligation to report in the revised heating law (from 2018) International network Mission Innovation #7 Affordable heating & cooling Comfort & Climate Box (CCB) Collaboration IEA TCP HPT/ECES NL budget for the operating agent 9

10 .. broader scope: Climate Agreement Dutch table approach with result? Sector Indicative CO2 reduction target Mton per 2030 Industry 14.3 Transport 7.3 Buildings 3.4 Electricity 20.2 Agriculture & Land-use 3.5 Total 48.7 Parliamentary discussion -> table work Agreement in 2019? Source: minezk More info:

11 Climate Agreement key points Further growth of renewable energy production and system integration; CO2-minimum price, tax shift gas and electricity No natural gas in new buildings; new funding models for improving energy performance of houses and other buildings; further penetration of renewable heat. Further improvement of process efficiency and efficient use of heat in industry; CCS as intermediate technology. Electrification of mobility, public transport without emissions; biofuels and green hydrogen, mobility chains, government tender procedures. Reduction of methane emissions in agriculture; carbon capture through land uses; sustainable horticulture; climate friendly food consumption, chain approach dairy farming. Climate Agreement in 2018? More info (also English document) 11

12 Summary Urgency! Phasing out gas production Groningen Post Paris. Policy focus on CO2-reduction (Climate agreement) Heat is 53% of final energy use in the Netherlands. To decarbonize, renewable heating (&cooling) plays a major role (Heating law, subsidy for heat, Mission Innovation/IEA annex Comfort & Climate Box) Stimulate both innovation and market uptake (e.g. Tenders) Cooperation public, private, NGO (#tables) Inspiring? 12