Council of State decides that non-Flemish green electricity certificates cannot be used in the Flemish Region

In different decisions of 1 February 2010 the Council of State dismisses the argument invoked by electricity suppliers that the Flemish energy regulator VREG has to accept non-Flemish green electricity certificates (groenestroomcertificaten) allowing the suppliers to comply with their obligation to hand in a certain amount of those certificates in relation to the electricity they supplied the preceding year.

The Council of State explicitly refers to article 25 of the Flemish electricity decree. According to the Council of State, the Flemish government only has to accept such non-Flemish green electricity certificates if the underlying non-Flemish regulation gives the same guarantee as the Flemish regulation.

Council of State decides that non-Flemish green electricity certificates cannot be used in the Flemish Region

Amendments To Flemish Renewable Energy Support System

The Flemish government submitted a proposal for amendments of the Flemish Electricity Decree aiming at a modified support system for renewable energy. If this proposal will be adopted by parliament, the following system will be applicable as from the entry into force of the decree:

1. PV-installations on domestic buildings that are not properly isolated will not be eligible for green electricity certificates that can be used by electricity suppliers to fulfill their obligations to hand in a number of certificates in relation to the amount of electricity supplied in the preceeding year. Consequently, no minimum support can be given to these certificates.

2. The minimum support that distribution system operators must give to producers of electricity from PV-installations will decrease after 1 January 2010:
350€ in 2010 during 20 years;
330€ in 2011 during 20 years;
310€ in 2012 during 20 years (and an evaluation of the non-performing peak);
290€ in 2013 during 15 years (unless otherwise decided by the Flemish government);
250€ in 2014 during 15 years;
210€ in 2015 during 15 years (and an evaluation of the non-performing peak);
170€ in 2016 during 15 years (unless otherwise decided by the Flemish government);
130€ in 2017 during 15 years;
90€ in 2018 during 15 years (and an evaluation of the non-performing peak);
50€ in 2019 during 15 years (unless otherwise decided by the Flemish government);
10€ in 2020 during 15 years.

Amendments To Flemish Renewable Energy Support System

Energy in the governmental declaration of the "interim"-government Verhofstadt III

The CD&V-N-VA, PS, Open VLD, MR and cdH agreed upon the following passus on energy and climate in the governmental declaration:

"6. Climate and energy will also be on top of the interim government's agenda. Next to measures with regard to spending power and in view of affordable prices and a guaranteed supply, we shall take additional measures to increase the stake of the consumers in the energy market. Belgium ranges itself with the goals of the second Kyoto-allociation plan and with the new goals for renewable energy. It will negotiate thereto with the European Commission on an ambitious and realistic contribution of our country. In the same spirit, the federal government will support the regions, the industry and the European community in finding solutions for the problems related to the allocation of CO2-quota for the 2008-2012 period. Furthermore it will activate and enlarge instruments to reduce the emission of CO2 in the residential sector and to decrease the bills of the families."

Energy in the governmental declaration of the "interim"-government Verhofstadt III

IPCC, Climate and Energy

In its Summary for Policymakers of the AR4 Synthesis Report, the Intergovernmental Panel on Climate Change proposes "a wide variety of policies and instruments available to governments to create the incentives for mitigation action". With regard to Energy Supply, the Summary mentions:

Improved supply and distribution efficiency; fuel switching from coal to gas; nuclear power; renewable heat and power (hydropower, solar, wind, geothermal and bioenergy); combined heat and power; early applications of Carbon Dioxide Capture and Storage (CCS) (e.g. storage of removed CO2 from natural gas); CCS for gas, biomass and coal-fired electricity generating facilities; advanced nuclear power; advanced renewable energy, including tidal and wave energy, concentrating solar, and solar photovoltaic.

The following policies, measures and instruments show to be environmentally effective:

• Reduction of fossil fuel subsidies; Taxes or carbon charges on fossil Fuels; and
• Feed-in tariffs for renewable energy technologies; Renewable energy obligations; Producer subsidies

The Key Constraints for these policies are:

• Resistance by vested interests may make them difficult to implement; and
• May be appropriate to create markets for low emissions technologies

IPCC, Climate and Energy

Partial governmental agreement on energy and sustainable development

The would-be federal political majority has not yet finalised the coalition agreement for the formation of a new federal government. However, a partial agreement on Energy and Sustainable Development was reached at the end of October.

"The federal government endorses the climate change goals set by the European Union (20% less emission of greenhouse gases, 20% more energy efficiency, 20% more renewable energy production). A national climate change commission will elaborate a multi annual climate plan. The Belgian government will use its international influence to have all industrialised countries participating in a reduction of greenhouse gases with 30%.

The government makes sure that the dominant player will observe nothing less than the obligations entered into vis-à-vis the previous government.

The government will closely follow the evolution of the energy prices and will create the conditions to allow an adequate competition. To that end, several additional electricity producers must be present on the Belgian market each having the possibility to acquire a considerable market share. The government will contribute to that as follows:
– To incite the dominant player to swap assets with competitors abroad; and/or
– To put at the disposal or to sell to other players, under the supervision of the CREG and against reasonable market conditions, a considerable share of the capacity (in MW) of the depreciated power stations; and/or
– To offer to other players (trough actioning or exchange) a considerable production share (in MWh) of the dominant player, under the supervision of the CREG, against a price composed of the production costs including the maintenance and replacement investments and a fair profit margin; and/or
– To create the preconditions allowing and encouraging other players to develop additional production capacity in Belgium (inter alia sites and access to natural gas and electricity grids);
– To put in all efforts to realise as soon as possible interconnectivity at the borders in order to obtain true competitive natural gas and electricity markets on a European level.

Moreover, the government encourages companies wanting to construct alone or in consortium a production unit for electricity.

The competition on the wholesale market for electricity must improve considerably. The electricity exchange BELPEX must be offered more marketable volume increasing the available liquidity for the suppliers. By analogy with the electricity market, the wholesale market for natural gas must become competitive. This will be realised by creating a gas exchange (GASPEX), on the basis of what currently exists and with safeguards for sufficient transparency, that will dispose of sufficient marketable volumes.

The government will give the federal regulator CREG the necessary independence to act against and to supervise ex ante an actual competition on the production and supply market and to monitor the price evolutions closely. It will evaluate the functioning and the tasks of the CREG. The government will grant a clear and plain strategical mandate to develop a long term vision.

The federal government will give the CREG a mission to monitor the tariffs. Moreover, the CREG will be able to propose to the government every measure contributing to the improvement of the functioning of the regulated activities and the applicable tariffs.

The government resolutely opts for the independence of the system operators and for an independent operation of the transport systems by reducing gradually the share of producers/suppliers under 25% and with a substantial presence of the public sector. Energy companies can obtain shares but cannot, individually or collectively, have or use a blocking minority for example through a shareholders agreement or special share related (voting) rights, nor can they appoint independent directors.

The network system operators must have disposal of sufficient financial elbow room for carrying out replacements and new investments and to carry out the necessary maintenance to the grids, inter alia to allow Belgium to continue its development as junction of the European transit and transport grid. The system operators must fully independently allow equal access to the grids to all market players.

The government will invite the regions to tune the different systems of renewable energy certificates guaranteeing at the exchangeability, inter alia to promote the lowest price for the Belgian consumers. The government will improve the fiscal measures in favour of sustainable energy, inter alia by organising a system of take-along or of tax credits for investments that encourage energy efficiency and/or sustainable energy sources (...).

The government will take care that equal access conditions exist for competitors to import, store and transport natural gas. In order to guarantee the natural gas supply, the government will see over a tariff policy by the CREG (...) allowing the transport system operators to invest in natural gas storage capacity and in interconnections. The government continues the conversion of the Zeebrugge Hub enforcing its position as international spill for the natural gas supply. In general, the government take care that the policy of the CREG allows the system operators to guarantee an optimal quality of the networks without this leading to an excessive price increase of the distribution grid tariffs.

The government will discuss with the regions the consequences of a progressive replacement of L-gas by H-gas.

The government maintains the nuclear phase out of the existing nuclear facilities as set out in the Act of 31 January 2003. In order to comply with the goals of reducing greenhouse gases and to guarantee the affordability and security of supply, it will extend the operational term of some nuclear reactors for a limited time and in safe circumstances. In dialogue with all stakeholders, the government wants to obtain a national transversal multi annual alternative for fossil energy and nuclear energy, also translating the CO2 reduction goals. In the meantime, it will have carried out all necessary investments in the electricity power stations guaranteeing a safe exploitation and it will have modernised the existing very polluting power stations in order to reduce the pollution per MWh. The revenues of the taxes on the exceptional profits of the production of the depreciated nuclear and coal power plants will partially be used in a new fund “depreciated energy production” for the production and development of alternative energy sources and energy efficiency, the roll out of decentralised grids, the decrease of the federal contribution, the technique of carbon sequestration, the support of the MYHHRA-project, a social energy policy.

In the framework of the discussions about the prolongation of some nuclear installations, the government will have thought for the problem of the final price for the consumers."

Partial governmental agreement on energy and sustainable development

The new federal government and the nuclear phase-out

According to press articles, the negotiators for the formation of a new federal government agreed upon maintaining the phase-out for Doel I (392-393 MW) and II, but decided to postpone the phase-out for the remaining nuclear reactors in Belgium (Tihange I, II and III, and Doel III and IV). The negotiators want to levy taxes on the remaining nuclear reactors and use the proceeds for investments in renewable energy.

The new federal government and the nuclear phase-out

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.

Final report of Commission Energy 2030