The Netherlands is set for significant growth in sustainable power production which, if present goals are met, will change its power market dramatically. Energy Matters ask whether there is a Dutch future for conventional power such as CHP and, if so, how plant operators should deal with this changing environment.

The Dutch Energy Transition and the situation of CHP

In 2013 40 different Dutch market players, the national government and several institutions and NGO’s signed an agreement to accelerate the transition towards sustainable energy and a low carbon economy. The SER Energy Agreement. Part of the agreement is a substantial increase of sustrainable power production. At this moment it looks like all parties involved in the SER Energy Agreement have a strong drive to realize the targets.

Coal Power Plants, Gas Fired Plants, CHP installations

CHP has a relative large share in the Dutch electricity production mix with over 40% of electricity being produced in CHP installations. Although the enormous savings potential of CHP, there is nog support for CHP accoording to the SER agreement and it is foreseen that the government is nog willing to set up a subsidy scheme for CHP. WIthout support it is expected by Cogen Netherlands, that about 50% of the present CHP capacity will be phased out in the next decade. But is the present situation permanent or just a bad moment for CHP?

For the Netherlands, the expectation is that after another two years of a poor market and a low spark spread new opportunities and revenues arise for flexible CHP units from 2017 onwards. Until then Dutch CHP’s have to bite the bullet.

bron: Energy Matters