The future of energy in the Netherlands and Bangladesh
Tuesday, 13 April 2010
Alphons J.A.J.M.G. Hennekens
THE Netherlands energy policy is based on the European vision that in 2050 energy should be clean, reliable and affordable. This vision was developed based on the notion that the demand for energy is ever increasing, the associated CO2 emission is too high at the moment and traditional energy sources are getting scarcer. The Netherlands wants to break the cycle of increasing reliability on polluting energy sources and strives for a transition to sustainable, clean energy management. At the same time it is realised that the Government cannot achieve this on its own and active cooperation and contribution is sought from the private sector, households, knowledge institutes and non-governmental organisations.
Already in 2008, the Government formulated its energy vision, which provides the framework for national and international cooperation in the field of energy. The energy vision is broken down into three priorities:
1. Ensuring that the energy needed to meet the demand is provided in an economically efficient way.
2. Ensuring the right 'energy mix' needed to meet energy demand in a sustainable way.
3. Ensuring that the proper infrastructure is in place to deliver energy to the customer.
The challenges in the energy sector in the Netherlands cannot be solved within the present energy structure. The Government believes that to achieve the different policy objectives it will be necessary to force technological changes, foster behaviour changes of consumers and to adapt the energy infrastructure in order to make the change to a sustainable energy management possible.
One of the key factors that determine the success of the transition is the role of civil society and the private sector. Both stakeholders will be intimately involved in shaping and implementing the energy policy in the coming years. At the core of sustainable energy management is a system of flexible energy management. This means an energy management system which is:
-- Cleaner, especially in terms of reduction of CO2 emission in order to meet the EU target of 50% in 2050 against the emission level of 1990. The focus will be on energy saving, sustainable energy CO2 Capture and Storage (CCS) and nuclear energy.
-- Smarter, smarter regulation of supply and demand through the use of ICT (smart energy consumption meters and networks). New combinations of techniques and systems are needed both small scale (energy neutral housing) and large scale (integration of electricity grids with neighbouring countries).
-- Diversified, energy should be supplied through a variety of sources, besides sustainable energy sources more variation in fossil fuels is needed originating from multiple countries, through multiple routes.
Vision 2050
The vision the Government of the Netherlands is that by 2050, 40% of all energy originates from sustainable energy sources, this can be achieved by investing in wind at sea, biomass and a variety of small scale decentralised techniques. The percentage of energy from natural gas has decreased and the percentage of energy from coal and nuclear power has increased. In 2050, there will be more import and export of electricity. The Netherlands will still have quite a number of gas powered electricity plants but these will use mainly gas from sustainable sources. There will be an increase in decentralised micro-Combined Heat & Power (micro-CHP) systems, solar power, wind-turbines, and heat pumps. The use of petrol and diesel has reduced drastically as most cars will be powered through electricity, bio-fuels and/or hydrogen. The 'heat demand' of buildings will have decreased whereas in the industry more sustainable heat is used, which will lead to high energy-saving also as a result of energy supply chain cooperation.
To achieve the vision the Netherlands will:
1. Create a good investment climate for large scale energy production, further integration of electricity markets, streamlining procedures for infrastructure projects, develop a clear framework for Carbon Capture and Storage and develop clear sustainability criteria for the use of biomass.
2. Strengthen the role of the Netherlands as main hub for gas distribution in the world and work on the development of the North-Sea as (sustainable) energy source.
3. Foster innovation to develop small scale techniques and develop the accompanying policies to make the energy grind smarter, flexible and more efficient.
Innovations in energy
Innovation is one of the key elements to achieve the energy vision 2050. The Government has created several policy instruments and platforms to foster innovation and to bring Government, private sector and civil society together around the issue of clean, smart and affordable energy (see www.senternovem.nl/energytransition/index.asp for more information). From its side, the Government will ensure that there is a supporting framework (transparent, efficient markets, tax regulations and policies) which enable innovations to take place. Innovations will focus among others on:
1. New gas: demonstration projects for the production of SNG (synthetic natural gas).
2. Sustainable electricity: further development of solar cells.
3. Sustainable mobility: experiments with hydrogen driven cars.
4. Supply Chain Efficiency: reduction of energy use in agriculture.
5. Urban areas: development and application of heat and cold storage under ground.
6. Blue energy: using the North-Sea as source of energy through wave energy, wind turbines at sea (6000 MW to be generated in the coming years at sea through wind turbines), production of algae as a source of biomass, and making use of the electricity potential difference between salt and fresh water to create electricity.
7. Nuclear energy: development of 4th generation technologies.
To foster innovations in these areas in the Netherlands, the Government has made EUR 458 million available for the period 2008-2012.
Energy in Bangladesh
Energy is at the source of development and to achieve middle income status in the coming years, Bangladesh needs to invest in a stable energy supply and a good energy management system. The same as in the Netherlands, energy must be sustainable, reliable and affordable. On the short term, Bangladesh must identify ways to make more efficient use of the existing natural resources (gas, coal) and upgrade the reliability of the energy network. On the medium term, Bangladesh should ensure a stable sustainable supply of energy through interconnectivity with neighbouring countries. Europe has one fully integrated electricity network which will be connected with the electricity network of Africa, creating one of the largest electricity networks in the world. The main reason for this is to create a stable supply and to accommodate energy supply and demand shocks due to decentralisation of energy generation. Coupled to this investments need to be made to make energy supply more robust. This requires diversification in the sources of energy and investing in a better, more flexible, reliable and stable grid.
To prepare for better energy management in the longer term, Bangladesh must identify and test appropriate energy generation systems and a smarter, regionally interconnected grid and invest in human capacity to be able to construct and manage the new energy system. In order to achieve this, the Government must play an active role in fostering the discussion between the Government, private sector, think tanks, non-governmental stakeholders and consumers. Furthermore, the Government should consider investing in a (regional) energy market and provide a robust framework for investments and innovation in the energy sector.
The writer is Ambassador of the Kingdom of The Netherlands in Bangladesh
THE Netherlands energy policy is based on the European vision that in 2050 energy should be clean, reliable and affordable. This vision was developed based on the notion that the demand for energy is ever increasing, the associated CO2 emission is too high at the moment and traditional energy sources are getting scarcer. The Netherlands wants to break the cycle of increasing reliability on polluting energy sources and strives for a transition to sustainable, clean energy management. At the same time it is realised that the Government cannot achieve this on its own and active cooperation and contribution is sought from the private sector, households, knowledge institutes and non-governmental organisations.
Already in 2008, the Government formulated its energy vision, which provides the framework for national and international cooperation in the field of energy. The energy vision is broken down into three priorities:
1. Ensuring that the energy needed to meet the demand is provided in an economically efficient way.
2. Ensuring the right 'energy mix' needed to meet energy demand in a sustainable way.
3. Ensuring that the proper infrastructure is in place to deliver energy to the customer.
The challenges in the energy sector in the Netherlands cannot be solved within the present energy structure. The Government believes that to achieve the different policy objectives it will be necessary to force technological changes, foster behaviour changes of consumers and to adapt the energy infrastructure in order to make the change to a sustainable energy management possible.
One of the key factors that determine the success of the transition is the role of civil society and the private sector. Both stakeholders will be intimately involved in shaping and implementing the energy policy in the coming years. At the core of sustainable energy management is a system of flexible energy management. This means an energy management system which is:
-- Cleaner, especially in terms of reduction of CO2 emission in order to meet the EU target of 50% in 2050 against the emission level of 1990. The focus will be on energy saving, sustainable energy CO2 Capture and Storage (CCS) and nuclear energy.
-- Smarter, smarter regulation of supply and demand through the use of ICT (smart energy consumption meters and networks). New combinations of techniques and systems are needed both small scale (energy neutral housing) and large scale (integration of electricity grids with neighbouring countries).
-- Diversified, energy should be supplied through a variety of sources, besides sustainable energy sources more variation in fossil fuels is needed originating from multiple countries, through multiple routes.
Vision 2050
The vision the Government of the Netherlands is that by 2050, 40% of all energy originates from sustainable energy sources, this can be achieved by investing in wind at sea, biomass and a variety of small scale decentralised techniques. The percentage of energy from natural gas has decreased and the percentage of energy from coal and nuclear power has increased. In 2050, there will be more import and export of electricity. The Netherlands will still have quite a number of gas powered electricity plants but these will use mainly gas from sustainable sources. There will be an increase in decentralised micro-Combined Heat & Power (micro-CHP) systems, solar power, wind-turbines, and heat pumps. The use of petrol and diesel has reduced drastically as most cars will be powered through electricity, bio-fuels and/or hydrogen. The 'heat demand' of buildings will have decreased whereas in the industry more sustainable heat is used, which will lead to high energy-saving also as a result of energy supply chain cooperation.
To achieve the vision the Netherlands will:
1. Create a good investment climate for large scale energy production, further integration of electricity markets, streamlining procedures for infrastructure projects, develop a clear framework for Carbon Capture and Storage and develop clear sustainability criteria for the use of biomass.
2. Strengthen the role of the Netherlands as main hub for gas distribution in the world and work on the development of the North-Sea as (sustainable) energy source.
3. Foster innovation to develop small scale techniques and develop the accompanying policies to make the energy grind smarter, flexible and more efficient.
Innovations in energy
Innovation is one of the key elements to achieve the energy vision 2050. The Government has created several policy instruments and platforms to foster innovation and to bring Government, private sector and civil society together around the issue of clean, smart and affordable energy (see www.senternovem.nl/energytransition/index.asp for more information). From its side, the Government will ensure that there is a supporting framework (transparent, efficient markets, tax regulations and policies) which enable innovations to take place. Innovations will focus among others on:
1. New gas: demonstration projects for the production of SNG (synthetic natural gas).
2. Sustainable electricity: further development of solar cells.
3. Sustainable mobility: experiments with hydrogen driven cars.
4. Supply Chain Efficiency: reduction of energy use in agriculture.
5. Urban areas: development and application of heat and cold storage under ground.
6. Blue energy: using the North-Sea as source of energy through wave energy, wind turbines at sea (6000 MW to be generated in the coming years at sea through wind turbines), production of algae as a source of biomass, and making use of the electricity potential difference between salt and fresh water to create electricity.
7. Nuclear energy: development of 4th generation technologies.
To foster innovations in these areas in the Netherlands, the Government has made EUR 458 million available for the period 2008-2012.
Energy in Bangladesh
Energy is at the source of development and to achieve middle income status in the coming years, Bangladesh needs to invest in a stable energy supply and a good energy management system. The same as in the Netherlands, energy must be sustainable, reliable and affordable. On the short term, Bangladesh must identify ways to make more efficient use of the existing natural resources (gas, coal) and upgrade the reliability of the energy network. On the medium term, Bangladesh should ensure a stable sustainable supply of energy through interconnectivity with neighbouring countries. Europe has one fully integrated electricity network which will be connected with the electricity network of Africa, creating one of the largest electricity networks in the world. The main reason for this is to create a stable supply and to accommodate energy supply and demand shocks due to decentralisation of energy generation. Coupled to this investments need to be made to make energy supply more robust. This requires diversification in the sources of energy and investing in a better, more flexible, reliable and stable grid.
To prepare for better energy management in the longer term, Bangladesh must identify and test appropriate energy generation systems and a smarter, regionally interconnected grid and invest in human capacity to be able to construct and manage the new energy system. In order to achieve this, the Government must play an active role in fostering the discussion between the Government, private sector, think tanks, non-governmental stakeholders and consumers. Furthermore, the Government should consider investing in a (regional) energy market and provide a robust framework for investments and innovation in the energy sector.
The writer is Ambassador of the Kingdom of The Netherlands in Bangladesh