Wednesday, 27 June 2007

Final report of Commission Energy 2030

The Commission 2030 set up to make a study and a report which should lead to the elaboration of the Belgian energy policy by the year 2030 has published its final report.

I tried to summarise the "Key Messages in a Nutshell":

The objective of a sound energy policy is to offer energy services for a variety of applications, based on an energy basket that guarantees a firm security of supply, at an acceptable cost for society, and in an environmentally friendly way.

The Belgian energy policy will have to consist of a balanced mixture of contributing elements. Four groups of “energy sources” [(energy savings, carbon-based resources, nuclear and renewables)] have to be considered, each having their specific merits and limitations[.] (…) Omitting one of them will likely lead to a sub-optimal solution.

On security of supply, four aspects are to be focused on as priorities: Diversity of supply of primary sources and technologies (…); a stable investment climate (…); TSOs and DSOs must be 'allowed' to invest in extensions, adaptations, and preventive maintenance (…); a comprehensive study to find the appropriate energy mix (…) must be carried out.

The liberalization process for electricity and gas in Belgium must be continued in line with the European common energy market concept. Industry has to be enabled to fully participate in the European wholesale energy market, by co-investing in generation assets, by long-term contracts, by establishing a liquid wholesale market, supported by sufficient transnational transmission capacity. Sufficient retail market access should develop over time to reach a good mix of suppliers in Belgium. Regulated capped prices at the retail level are advised against.

Strict supervision by a competent and independent Regulator is necessary while accounting for the development of a European regulatory institution. (…)

Belgium should devote much more research & development means to energy. (…)

Upon lifting the nuclear phase-out law, an agreement with the owners of the Belgian nuclear power plants is to be sought for, to establish a "correct" nuclear-extension concession fee, the revenues of which could be used for stimulating investments in energy savings & demand-side management, for development in renewable energy, for development & research in emerging energy technologies and carriers.

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New Flemish Energy Minister

Tomorrow, 28 June, Hilde Crevits will be sworn in as the new Flemish Energy Minister. Crevits was Alderman inter alia for utilities and energy in the City of Torhout. She was also recently appointed as member of the board of directors of Distrigas as a representative of Publigas.
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Monday, 18 June 2007

Something from The Netherlands

Belgium energy legislation continues its winter sleep awaiting the formation of a new government.

Last week, the new Dutch governement presented its policy note (in Dutch) for the next four years.

On Belgisch Energierecht I given an excerpt of the most interesting issues from an energy policy perspective (in Dutch).
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Thursday, 7 June 2007

Support for ecological investments

During the last week, the Flemish Government was heavily critised for revoking the existing support mechanism for ecological investments by companies. In my blog Belgisch Energierecht I give an overview (in Dutch) of the different positions taken by the sector and the Flemish government.
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Tuesday, 5 June 2007

Pax Electrica Ter?

During the "big debate" in view of the federal elections next Sunday 10 June 2007, prime minister Verhofstadt said that he is convinced, based upon his discussions with the French president Sarkozy and the French prime minister Fillon, that the merger between Suez and Gaz de France will not take place.

Nevertheless, Verhofstadt is of the opinion that even in the event the merger would not succeede, the Belgian government should enter into discussions with Suez in order to agree upon a new Pax Electrica, aimed at the release of 30% of Electrabel's production capacity in Belgium to two other players. Strangely enough, it still appears that one of the two potential candidates is already known: the Belgian company SPE.
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New tariff system for the Electricity TSO

On 1 June 2007, the Belgian federal government held its last cabinet meeting before the elections of next Sunday. During this meeting, the draft royal decree laying down the procedures for the setting of the electricity transmission system tariffs of Elia was adopted (French text), thus executing the new provisions of the Electricity Act of 29 April 1999, as modified by the Act of 1 June 2005.

Because of the federal elections, the King will not sign this royal decree until the formation of a new government has succeeded. Consequently, it might not enter into force before the fall.

The new royal decree also develops the “four years” tariffs, allowing greater stability for the use of the transmission system.

However, it appeared from an article in the Flemish newspaper De Standaard (registration required) that in its advice on the draft royal decree the Council of State was very critical on the possibility of setting tariffs for four years. This seems strange, since this new tariffs-system was one of the cornerstones of the Act of 1 June 2005.
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