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THE NETHERLANDS 2008 Review Energy Policies of IEA Countries

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THE NETHERLANDS 2008 Review Energy Policies of IEA Countries INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/Textbase/about/copyright.asp THE NETHERLANDS 2008 Review Energy Policies of IEA Countries THE NETHERLANDS 2008 Review The energy policies of the Netherlands play an important role in ensuring energy security not only on a national level but in all of north-west Europe. The country’s strategic location makes it an important transit and trade hub for natural gas, oil and electricity. Furthermore, it has important natural gas production and a large oil refining industry. To enhance continental energy security, the government takes a leadership role in natural gas and electricity market development, pushing forward important policies to better integrate and harmonise the existing national and regional markets. One of the world’s leaders in energy research and development (R&D) management, the Netherlands is further increasing its R&D on energy technologies. With sound policies already in place, the Netherlands has recently announced its intention to create an even more sustainable energy future. As part of this pledge, the government has set ambitious targets: to increase the share of renewables in the energy mix to 20% by 2020; to make a 2% annual efficiency improvement; and to lower greenhouse gas emissions by 30% by 2020 from the 1990 level. These objectives will not be easy to achieve. To ensure their attainment, the Netherlands will need not only well-designed policies but also their timely and effective implementation. This review analyses the energy challenges facing the Netherlands and provides critiques and recommendations for further policy improvements. For example, it urges the government to provide policy continuity – such as in promotion regimes for renewable energy – to underpin a sustainable investment climate. It also highlights the need for closer co-ordination among national, regional and local authorities. (61 2008 20 1 P1) €75 ISBN 978-92-64-04339-8 -:HSTCQE=UYXX^]: INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries THE NETHERLANDS 2008 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA) is an autonomous body which was established in November 1974 within the framework of the Organisation for Economic Co-operation and Development (OECD) to implement an inter national energy programme. It carries out a comprehensive programme of energy co-operation among twenty-eight of the OECD thirty member countries. The basic aims of the IEA are: n To maintain and improve systems for coping with oil supply disruptions. n To promote rational energy policies in a global context through co-operative relations with non-member countries, industry and inter national organisations. n To operate a permanent information system on the international oil market. n To improve the world’s energy supply and demand structure by developing alternative energy sources and increasing the effi ciency of energy use. n To promote international collaboration on energy technology. n To assist in the integration of environmental and energy policies. The IEA member countries are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Republic of Korea, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States. The European Commission also participates in the work of the IEA. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of thirty democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic of Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States. The European Commission takes part in the work of the OECD. © OECD/IEA, 2009 International Energy Agency (IEA), Head of Communication and Information Offi ce, 9 rue de la Fédération, 75739 Paris Cedex 15, France. Please note that this publication is subject to specifi c restrictions that limit its use and distribution. The terms and conditions are available online at http://www.iea.org/Textbase/about/copyright.asp TABLE OF CONTENTS 1 EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS ..... 9 Executive Summary ..................................................... 9 Key Recommendations ................................................. 11 PART I: POLICY ANALYSIS 2 GENERAL ENERGY POLICY ................................. 15 Country Overview....................................................... 15 Supply-Demand Balance ............................................... 16 Supply ............................................................... 16 Demand ............................................................. 17 Electricity Generation ............................................... 18 Government, Regulatory Institutions and Other Organisations ...... 18 Key Energy Policies ..................................................... 20 Energy Taxes and Subsidies ............................................ 22 Critique .................................................................. 23 Recommendations ...................................................... 25 3 SUSTAINABLE ENERGY POLICIES ............................ 27 Climate Change ........................................................ 27 Carbon Dioxide Emissions Profile .................................. 27 Kyoto Target ......................................................... 29 Climate Change Policy ............................................. 29 Air Quality .............................................................. 36 Energy Efficiency ....................................................... 36 Trends in Energy Efficiency ......................................... 36 Key Institutions ..................................................... 37 Policies and Measures .............................................. 37 Industry ............................................................. 38 Residential and Commercial Sectors ............................... 40 Transport ............................................................ 42 Critique .................................................................. 43 Recommendations ...................................................... 48 4 ENERGY SECURITY .......................................... 49 Oil ....................................................................... 49 Natural Gas ............................................................. 50 Electricity ................................................................ 50 Technology Development .............................................. 51 Critique .................................................................. 51 Recommendations ...................................................... 53 2009 OECD/IEA, 3 © PART II: SECTOR ANALYSIS 5 FOSSIL FUELS .............................................. 57 Hydrocarbon Exploration and Production ............................. 57 Natural Gas ......................................................... 57 Oil ................................................................... 61 Natural Gas ............................................................. 61 Demand ............................................................ 61 Market Structure .................................................... 62 Infrastructure ........................................................ 64 Imports and Exports ................................................ 68 Hub Trading ......................................................... 68 Security of Supply ................................................... 72 Oil ....................................................................... 72 Supply-Demand Balance ........................................... 72 Industry Structure ................................................... 74 Prices and Taxes .................................................... 74 Data Quality ........................................................ 74 Coal ..................................................................... 79 Supply-Demand Balance ........................................... 79 Coal Power Plant Efficiency ........................................ 79 Carbon Capture and Storage ....................................... 80 Critique .................................................................. 82 Recommendations ...................................................... 84 6 ELECTRICITY ................................................ 87 Supply and Demand ................................................... 87 Capacity ............................................................. 87 Electricity Generation ..............................................
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