Dutch government unveils green energy production subsidy
Date: 06-Nov-02
Country: NETHERLANDS
The new proposals are part of an effort to cut the overall amount the state spends to promote clean energy by about 310 million euros annually, while shifting funding to producers from consumers, a spokesman for the Dutch economics ministry said.
In September, the government said it would trim 450 million euros in subsidies in place since the beginning of the year by reducing the exemption to the "eco-tax" to three cents from six cents per kilowatt hour for households which use green energy.
An unintended consequence of the previous government's system had sent up to 200 million euros in Dutch state money to biomass generation in Denmark and Norway, prompting criticism the subsidies failed to stimulate new production facilities.
The Dutch government has been scrambling to cut expenditures for 2003, when its budget deficit is expected to reach 2.2 billion euros.
Under the new government proposals, the state will subsidise five euros cents per kilowatt hour (kwh) of power from sea-based wind, biomass facilities with capacity under 50 megawatts, photovoltaic solar power, tidal and wave power and water power.
Land-based wind farms and plants operating on partial biomass will receive 2.4 euro cents per kwh, while cogeneration plants will receive 0.32 euros cents for the first half of 2003.
The new subsidies, which apply only to production facilities brought online since the beginning of 1996, will take effect from the beginning of 2003 if approved by the parliament.
In addition, the government would add a 34 euro charge per consumer connection, although the effect would be neutral because of a planned reduction in the overall tax, according to the ministry.
More than one million Dutch households have opted to buy green energy instead of traditional coal, gas or nuclear-generated power since July 2001.
The plan must also be approved by the European Commission, which has informally signalled it did not oppose the plan, the ministry said.
The issue remains clouded by the untimely fall of the centre-right government in October after less than 100 days in office. New elections are scheduled for January, and the parliament is expected to debate the 2003 budget next week.
