Netherlands Energy efficiency report

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1 Netherlands Energy efficiency report Objectives: 51 TWh of end-use energy savings by 216 2%/year of energy savings over Overview - (% / year) Primary intensity (EU=1) % -- CO 2 intensity (EU=1) % -- CO 2 emissions per capita (in tco 2 / cap) % - Power generation - (% / year) Efficiency of thermal power plants (in %) % + Rate of electricity T&D losses (in %) % -- CO 2 emissions per kwh generated (in gco 2 / kwh) % - Industry * -* (% / year) Energy intensity (EU=1) % - Share of industrial CHP in industry consumption (in %) % + Unit consumption of steel (in toe/t) % - * and 2- for steel ++ Among best countries + Better than the EU average - Below the EU average -- Among countries with lowest performances Latest update: January The European Union, as the best-performing region, is used as the benchmark. 1 Netherlands Country reports

2 1. Overview 1.1. Policies: 2%/year of energy savings by 22 The Netherlands has adopted a National Energy Efficiency Action Plan -216 (NEEAP), which sets an energy savings target of 51.2 TWh (or 4.4 Mtoe) by 216 to be achieved in buildings, transport and small industries (excluding sectors under ETS). Industry (including non-energy uses) is the largest consuming sector, with about 45 percent of final energy consumption. The households and services sector represents 35 percent of final consumption while transport accounts for 2 percent. Figure 2: Distribution of final energy consumption by sector 1% The Clean and Efficient Program, launched in, aims to improve energy efficiency by 2 percent/year over the period and to reduce greenhouse gas emissions by 3 percent by 22 compared with. The program uses different measures to achieve its objectives, including energy efficiency standards. 8% 6% 4% Households -Services -Agriculture Transport 1.2. Energy consumption trends: a high level of energy consumption per capita Consumption per capita (4.7 toe in ) is 4 percent higher than the EU average, mainly because of the large refining and chemical industries. 2% % Industry (including non energy use) Total energy consumption increased by 1.2 percent/year between and. It decreased slightly in (-.7 percent) and more significantly in (-2.2 percent) as a result of the economic slowdown. Natural gas occupies a privileged position and meets 45 percent of the country s energy needs. The market share of oil stands just below 4 percent and is increasing (35 percent in ). The use of coal decreased slightly, accounting for 1 percent of the primary energy mix in. The share of biomass increased over the period and reached 5 percent in. Nuclear electricity accounted for around 2 percent in (2.6 percent in ). Figure 1: Total and final energy consumption trends The country s electricity consumption per capita is 15 percent higher than the EU average, at 6,6 kwh/capita. The share of electricity in final energy consumption increased slightly between and, from 12 percent to 15 percent. Until electricity consumption grew steadily, by more than 2 percent/year, but in it fell by 5.5 percent. Industry represents 4 percent of the country s electricity consumption. Figure 3: Electricity consumption trends by sector Industry Others TWh Mtoe Primary consumption Final consumption Country reports Netherlands 2

3 Netherlands Energy efficiency report 1.3. Energy efficiency and CO 2 trends: large fall in CO 2 intensity thanks to fuel substitutions Total energy consumption per unit of GDP (primary energy intensity), measured at purchasing power parity, is only slightly higher than the EU average (by 8 percent). Primary energy intensity decreased at a slower pace than in the EU as a whole: 1.2 percent/year compared with 1.7 percent/ year for the EU between and. Final energy consumption per unit of GDP (final intensity) decreased at a faster pace than primary energy intensity. That trend, which was even more noticeable between and, reflects increased losses in energy conversion. CO 2 emissions per unit of GDP (CO 2 intensity) decreased faster than total energy intensity over the period - due to substitutions of coal by biomass in the primary energy mix. Fuel substitutions explain about 3 percent of the CO 2 intensity reduction between and. directly, or buy green certificates. Since, the green certificates can be used to buy electricity produced from renewables abroad. However, the new law on renewables specifies that in order to qualify for government aid, the green electricity must be produced in the Netherlands Power generation trends by source: thermal sources dominate power generation Thermal sources represent 85 percent of power generation. The share of natural gas in electricity production is growing rapidly and in represented about 6 percent of the overall production (5 percent in ). The share of coal-fired electricity production decreased from 4 percent in to 25 percent in. As a result, CO 2 -free sources play a marginal role in electricity generation and in made up just 15 percent of total generation (6 percent for biomass, 5 percent for nuclear and 4 percent for wind energy). Figure 5: Power generation by source Figure 4: Energy and CO 2 intensity trends 12.% %/year -.2% -.4% -.6% -.8% -1.% -1.2% TWh Other* Wind Nuclear Gas Oil Coal-Lignite -1.4% -1.6% -1.8% *Including biomass, geothermal and solar -2.% Primary energy intensity Final energy intensity CO 2 intensity 2. Power generation 2.1. Policies: bonus payment and quotas for electricity generated from renewables In the framework of its Clean and Efficient Program, the country set the target of achieving 2 percent of renewables in primary energy consumption by 22. Moreover, the Netherlands aims to double its wind power production capacity, setting targets of 4, MW for 211 and 6, MW for 22. The development of renewables in power generation is encouraged through a bonus payment system called Sustainable Energy Incentive Scheme (SDE). The producers of electricity from renewables are also exempted from the environmental tax levied on electricity consumption (Ecotax). Electricity distribution companies have to distribute an amount of green electricity. Distributors either have to produce the green electricity 2.3. Efficiency of the power sector: sharp drop in the CO 2 emission factor The efficiency of the power sector has increased significantly since and stood at 45 percent in. That trend is mainly driven by the development of gas-combined cycle facilities. 3 Netherlands Country reports

4 Figure 6: Efficiency of power generation and thermal power plants Figure 8: Electric T&D losses % 38 % Total power generation Thermal power plants 1 3 GW Figure 7: Thermal electricity capacity, by technology 25 Steam Gas turbines Combined cycles The average CO 2 emission factor for power generation decreased sharply between and (by 35 percent). The amount of CO 2 emitted per kwh produced was around 37 gco 2 in. The fall in the CO 2 emission factor for electricity production was driven by the substitution of coal by natural gas and the development of renewables, primarily biomass. Figure 9: CO 2 emissions factor for power generation gco2/kwh 45 4 The rate of T&D losses in the Dutch grid has remained stable over time, at 4 percent of the distributed volumes Country reports Netherlands 4

5 Netherlands Energy efficiency report 3. Industry 3.1. Policies: voluntary agreements to improve efficiency In industry, the Long-Term Agreements and the Benchmarking Covenant played an important role in driving energy efficiency, as did the emission trading scheme (ETS). The Benchmarking Covenant was signed with 9 industrial companies and stipulates that they have to be among the most efficient 1 percent of industries in the world by Energy consumption trends: natural gas meets industrial energy needs Industrial energy consumption increased by 1.6 percent/year between and, but decreased significantly in and following the economic downturn (by 7.5 percent and 6 percent, respectively). Figure 11: Energy consumption of industry, by source 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Biomass Heat Electricity Gas Oil Coal/Lignite Figure 1: Industrial energy consumption Figure 12: Energy consumption of industry, by branch 14 1% Mtoe % 8% 7% 6% 5% Other Paper Non metallic minerals 4 4% Chemical 2 3% Steel 2% 1% % Natural gas remains the largest energy source in industry, despite the fact that its market share decreased from 5 percent in to about 4 percent in. The use of electricity has risen slightly since and its share stood above 25 percent in. The share of coal fell slightly, from 17 percent to 15 percent in (and even 11 percent in following the industrial recession). The market share of heat in industrial consumption has surged since following greater distribution of cogeneration, and stood at 11 percent in. Oil accounts for 7 percent of overall consumption while biomass is developing, although its share remains around 1 percent. Energy-intensive industries account for 6 percent of industrial energy consumption. The chemical industry is the largest sector, with 35 percent of overall consumption (4 percent in ). The market share of the steel industry has decreased slightly since, and was 15 percent in. The paper and non-metallic minerals industries represent 7 percent and 6 percent of the sector s consumption, respectively Energy intensity trends: industrial energy intensity trends driven by the chemical industry Industrial energy intensity (consumption per unit of industrial value added) decreased by 1 percent/year between and, with an acceleration since. Over the period - the largest drop was seen in the chemical industry, ie, the largest consuming sector, which saw its energy intensity fall by 4 percent/year. The decrease in the specific energy consumption of the steel industry was moderate, while energy consumption per ton of paper decreased by.4 percent/year. This contrasts with an increase in the pace of energy required per ton of cement between and, which increased by.7 percent/year. 5 Netherlands Country reports

6 Figure 13: Trends in the energy intensity of industrial branches 2% - - Figure 14: Trends in energy intensity of manufacturing and structural effect 1% % -1% -2% -3% Total* -4% Steel -5% Chemical -6% Cement** -7% Paper -8% *Including construction and mining ** - for cement The share of combined heat and power generation in the Netherlands is high (55 percent in ) and stands far above the EU average (17 percent). The share of CHP has increased noticeably since, along with the development of the use of heat and biomass in the sector s consumption. Figure 14: Share of Industrial CHP in industrial consumption 6% 5% 4% 3% 2% 1% % %/year %/year 1.5% 1.%.5%.% -.5% -1.% -1.5% -2.% -2.5% -3.% -3.5% -4.% - - Real variation Change at constant structure Structural effect When calculated at constant structure, the energy intensity of the manufacturing industry (ie, excluding mining and construction) decreased by 2.4 percent/year between and, compared with the slower pace of 1.9 percent/year for the actual value. Changes in the structure of the industrial value added, namely a growing share of chemicals, limited the reduction in the energy intensity of manufacturing. That effect was even more pronounced over the period -. All information or data provided by Enerdata, in any form, is the property of Enerdata and is protected in each country by national laws governing intellectual property. All information or data provided by Enerdata is copyright protected, inclusive of material appearing in a hard copy format or electronically. Data provided by Enerdata are based on compilation and analysis of the best sources in the industry. Enerdata has agreements with those providers to use and publish this data. All pictures Copyright ABB Country reports Netherlands 6

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