Innovation and institutional change: the transition to a sustainable ...

Evolution of decentral cogeneration in the Netherlands 143
1993 Second National Environmental Policy Plan (P)
Second White Paper on Energy Saving: Energy efficiency improvement target reduced to 17%
for 1989-2000, effectively 1.7% annual
Nine distribution companies and one producer publish vision in Horizon 2000 with
liberalisation as central tenet (E)
Four producers, EnergieNed, GasUnie and Sep publish vision Together with own Identities
with return to the pre-1989 situation of integrated electricity companies as central tenet (E)
1994 Sharp reduction of public budgets for cogeneration announced by new government (P)
Moratorium agreed for decentral cogeneration between distributors (EnergieNed) and
producers (SEP) (E)
Second Environmental Action Plan of the distribution sector, with increased targets for CO2
reduction (E)
1995 Third White Paper on Energy Policy: target of energy efficiency improvement of 33% for
1995-2020, effectively 1.6% annually. Cogeneration capacity targeted to rise to 8000 MWe in
2000 and 14000 MWe in 2020 (P)
Subsidies for cogeneration replaced by fiscal measures (investments become tax deductable)
(P)
1996 Introduction of Regulatory Energy Tax (P)
Policy note streamlining towards an electricity market (P)
EU directive on common rules for the electricity market (P)
Second White Paper on Climate Change (P)
1997 Kyoto-protocol agreed at World Climate Conference with a CO2 reduction target of 5% for
2000-2010 for developed countries (P)
Energy Distribution Act (E)
Third Environmental Action Plan (1997-2000) of the distribution sector (E)
SEP closes down Dodewaard nuclear power plant (E)
A stimulation package for cogeneration is unfolded
Despite these efforts, the growth of cogeneration during 1980-1985 was
below expectations and at the end of 1986 a motion was formulated in
parliament to formulate a stimulation program (AER, 1987). Important
factors triggering renewed discussion on cogeneration in that year were the
drop in energy prices that had slowed down energy efficiency improvements
and the Tsjernobyl accident in April 1986 that effectively closed the nuclear
route for electricity generation. In a follow-up, the AER concluded that
much of the potential for cogeneration was not being realised. In their
advice, the AER therefore proposed in the first place to let the lower gas
tariffs for large users also be applicable for smaller cogeneration units. After
negotiation with Gasunie and VEGIN 17 this advice was almost immediately
followed (AER, 1987: 8-9). The second issue involved remuneration tariffs
for electricity that were still considered low. The AER argued for an increase
in remuneration tariffs to be part of the then ongoing negotiations between
SIGE, VKW and the association of energy distributors, VEEN (AER, 1987:
17 Association of gas companies in the Netherlands.