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The Netherlands


After a period during which support was high but markets quite open, a system was introduced (in 2003) that established sufficient incentives for domestic RES-E production. Although successful in encouraging investments, this system, based on premium tariffs, was abandoned in August 2006 due to budgetary constraints. Political uncertainty concerning renewable energy support in The Netherlands is compounded by an increase in the overall energy demand. Progress towards RES-E targets is slow, even though growth in absolute figures is still significant.



RES-E policy in The Netherlands is based on the 2003 MEP policy programme (Environmental Quality of Power Generation) and is composed of the following strands:

  • Source-specific premium tariffs, paid for ten years on top of the market price. These tariffs were introduced in 2003 and are adjusted annually. Tradable certificates are used to claim the FITs. The value of these certificates equals the level of the FIT. Due to budgetary reasons, most of the FITs were set at zero in August 2006.
  • An energy tax exemption for RES-E was in place until 1 January 2005.
  • A guarantee of origin system was introduced simply by renaming the former certificate system.

The premium tariffs are given in Table I.18.

Table I.18: Key Support Systems - Premium Tariffs in the Netherlands

Technology Duration 1 July to 31 December 2004 1 January 2005 to 30 June 2006 Since August 2006
  premium premium premium
years €/MWh €/MWh €/MWh
Mixed biomass and waste 10 29 29 0
Wind onshore 63 77 0
Wind offshore 82 97 0
Pure biomass large scale > 50 MW 55 70 0
Pure biomass small scale < 50 MW 82 97 97*
PV, tidal and wave, hydro 82 97 0

*Only for installations using biogas from manure digestion and having a capacity below 2 MW. Total premium is limited to €270 million for the complete duration period.


In its climate policy, The Netherlands set a global target of 5 per cent renewable energy by 2010 and 10 per cent by 2020. According to the EU Directive, the RES-E share of The Netherlands should reach 9 per cent of gross electricity consumption in 2010. Between 1997 and 2004, progress was made towards the RES-E target. In 1997, the RES-E share was 3.5 per cent and by 2004 it had risen to 4.60 per cent.

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