Update Renewable Energy in the Netherlands. Maarten Arentsen University of Twente

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1 Update Renewable Energy in the Netherlands Maarten Arentsen University of Twente

2 Dutch political climate since late 2010 Right wing coalition in power with passive parliamentary support of popular party Restricted financial climate: 18 billion budget cuts in 4 years Less public money for all sectors Pragmatism and realism in politics Popular voice strong public control mechanism

3 Energy resource focus All options open including nuclear Fossils continue prominence till 2050 CCS will be needed and therefore experimented Realism and cost effectiveness in support of renewable energy Cheapest options preferred (closest to commercialisation) Preparation of a second nuclear power plant in the Netherlands Two consortia applied for an investment licence

4 Frame conditions public financial support of renewables Increase share renewables is focus (not innovation) (production target = EU commitment) Maximum surcharge per KWh and Nm 3 (Ceiling in support) Stimulation of technological options close to the market Priority to cheapest options Process controlled by opening subsidy in different ceiling rounds. First round lowest subsidy (highest chance funding), last round highest subsidy (lowest chance funding) Large scale cofiring of biomass very much welcomed but in different subsidy scheme

5 SDE+ Financial support of renewable energy production 1.5 billion Euro for financial support coming 15 years = 100 million a year Money comes from surcharge energy tariff gas and electricity of all consumers Is new, before tax money was used

6 Dutch RES-E performance (1/2) Gross production of electricity and heath by energy resource in percentage of total MWh produced Fossil resources Renewable resources Nuclear Other resources Total

7 Dutch RES-E performance (2/2)

8 Implications policy change. Momentum is fading out: Ambition and enthousiasm in renewable energy sector tempered Frustration of business dynamics in renewable energy production A shift from national to regional / local political support Example Overijssel: University-province collaboration on bioenergy

9 Overijssel Total 125 PJ in 2005 = 4% national energy consumption in Netherlands 4,3% of the 125 PJ energy consumption in Overijssel covered by renewable energy production in the region itself. Potential = Biomass/bioenergy

10 Production sustainable energy Overijssel 2011

11 Background of the project (1/2) Renewable energy ambition in Europe/the Netherlands Climate change Security of supply Renewable energy ambition in Overijssel 20% share in 2020 Bio energy as preferred option Substantial financial support

12 Background of the project (2/2) University /Province collaboration University in the community Knowledge push for regional development Investing shareholder money energy companies Bio-energy Health

13 Project Focus: Two technological trajectories 1. Pyrolysis Production of high-value fuels via catalytic pyrolysis Combustion of pyrolysis oil in gas turbines Pyrolysis oil upgrading to fuels 2. Bio-energy of farm scale Feedstock engineering Algae refinery Farm waste valorization

14 Why fast pyrolysis of biomass? Simple process Low temperature / pressure o C, 1 bar High efficiency: 15% energy loss 13 wt% 75 wt% 12 wt% Energy densification 1MJ feedstock 1MJ Pyrolysis Oil

15 Traditional farming

16 Future farming

17 Two routes: socio-technical questions How could both routes unfold in Overijssel between now and 2030? Energy production, consumption, logistics What do both routes imply for: the physical environment and the socio-economic development in Overijssel? How to accelerate innovation in both routes? Innovation and business models Governance and policy Knowledge and education Other questions?

18 Approach/method Processing existing knowledge Stakeholder dialogues Additional research

19 Work in progress More next year Thank you for your attention