Netherlands: world leader in biomass electricity?
28 April 2006
By on 11:16

(This log replaces the previous log containing the analysis of the industry)

The well-established trade and logistics for energy can make the Netherlands the main distributor of biomass. The well and numerous experiences with electricity generating technologies give opportunities for the Netherlands to be a leader in biomass applications.

Biomass is not limited by finite fuel reserves and is geographically more evenly distributed than fossil fuel reserves are. Therefore biomass has a large potential to contribute to the energy needs and decreases our energy dependence on other countries. In general, their application also has lower external (e.g. environmental) costs than the present use of fossil fuels. These characteristics have been key drivers for the Dutch government to set ambitious targets for the production of electricity from renewable sources in 2010: a contribution of respectively 9% to the gross domestic electricity consumption. Yet, the current contribution is only 3.3% and it is uncertain whether these targets will be reached. (SenterNovem, 2005) In order to meet these targets, the government has made agreements with the industry and has determined subsidies and laws. These are of great importance for the industry, but also branding is of significance (creating a corporate social responsible firm) Biomass promises the moon, but, how promising is this biomass indeed and what are the difficulties? Lest to find an answer on this, a SWOT analysis will be done.

Strenghts
- The knowledge position of energy technology of universities, institutions and firms is well established as well as their mutually national and international network.
- Logistics and trade in the Netherlands are well developed
- The technology enables the fuel switch from coal, oil or natural gas to biomass in existing technologies. The Netherlands is a leader in the field of coal-fired plants, so the technology to generate electricity from biomass is well known and developed.
- There is a legal framework that promotes biomass usage
- Biomass is commonly agreed to be without additional CO2 emission.

Weaknesses
- The Netherlands has a low level of fabrication industry and therefore focuses on trade transport and knowledge export.
- Little knowledge of society about biomass, which can cause problems for the acceptance.
- High costs
- Immature biomass market especially in fuel supply
- Dependency on policies

Opportunities

- The Netherlands has a well developed bio- en agricultural sector
- Dutch power plants are leader in biomass fired or co fired plants, which results in an increase in biomass import. The Dutch harbour and its position as distribution country offer excellent opportunities.
- The desire for a European electricity network can offer the Netherlands an opportunity to distribute this energy with their existing trade- and logistical systems.
(Bolt e.a., 2006)

Threats
- powerfull establishment of natural gas, coal and oil
- The present liberalization of the energy sector may lead to a (temporary) hesitance towards new investment projects
- Changing policies for subsidies


SenterNovem (2005) Learning in renewable energy technology
Bolt N., Combrink F.M., Vaessen P.T.M.(2006) State of the art studie techniekontwikkeling voor de elektriciteitsvoorziening, KEMA T&D Consulting, 10 februari 2006

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