Blurred image, change of strategy?
28 April 2006
By on 11:25

The sources used for this analysis were/are all publicly available. Therefore most of the collected material comes from government institutions and public research centres. Far less material could be collected from market players, the electricity producing companies or private research centres. This is not surprising though, as the production process is crucial for electricity production companies. To reveal everything about their production process is to tell all the competitors how they perform. In a competitive market this is clearly not sensible.

Difficulties with regard to the market and market players.
- Sales is disconnected from production.
- Whether production takes place inside or outside the Netherlands.
- Existence of many different discussion groups, taskforces, joint undertakings and interest committee. There are still few authorities in the field.

Other difficulties in the information use:
- Disagreement on definitions of biomass; whether or not to include Municipal Solid Waste (MSW) as biomass, or how to determine the biogenic fraction in MSW.
- Forthcoming the issue of “green electricity”.

We have to acknowledge that the image we had from the collected material is not the complete image of the industry. Does this change our earlier recommended strategy?

It provides the image of a young and immature – part of the – industry. Here, common definitions are often lacking and there is a lack of clarity on the market players, especially after the recent liberalization of the electricity sector. Therefore there is little transparency of the market.
This strengthens us in the recommended strategy towards the Ministry of economic affairs to be clear in their long term support and be flexible with regard to regulations. As it is an industry where developments are desired, this should create an environment for the industry to deploy.

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