The Dutch House of Representatives (“Tweede Kamer”) recently declared the bill to phase out the netting scheme for solar panels definitively controversial. The law will only be discussed in the House of Representatives after the upcoming national elections on March 17, 2021.
This development creates uncertainty for individual households and companies. On the other hand, people know that solar energy must be fully used. As part of a necessary energy transition and also necessary to achieve the Dutch climate goals. We can therefore assume that it will remain interesting for households and companies to invest in solar energy systems.
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According to the ‘EU Market Outlook For Solar Power 2020 – 2024’, issued by SolarPower Europe: “Top 5 EU solar markets 2020: Europe’s new No. 2 in 2020 is likely the Netherlands, which moved up one rank, after installing an estimated 2.8 GW, a 23% rise compared to 2.3 GW installed in 2019.”. Read more …..
Remarkable conclusions from a second opinion investigation carried out by the “Stichting Economisch Onderzoek (SEO)” (Economic Research Foundation) at the request of the G-40 city network.
According to the G40-citynetwork (translated from the original message in the Dutch language): “On 8 October, the Minister of Economic Affairs and Climate has submitted the bill on Phasing Out Netting Regulations for small consumers. With this law, one of the few measures that stimulates citizens to invest in local sustainable energy is pushed aside. The reason for the phasing out is the expectation of “overstimulation”. However, research commissioned by the G40-network shows that overstimulation by maintaining the scheme has not been demonstrated. The Minister bases his bill on various studies, including the evaluation studies conducted by PWC. Partly on the basis of this, the conclusion is drawn that there is “overstimulation” if the existing netting scheme continues to exist. The G40-network has asked SEO to conduct a second opinion on the PWC studies. Conclusion: overstimulation as a motivator has not been explained, demonstrated or substantiated. ”. Read more …..
A remarkable but also worrying conclusion. After all: everything must be done to stimulate residents and owners of buildings to proactively participate in sustainability. Installing solar panels is one of those solutions. The last thing we want are unnecessary hurdles.
The importance of applying significant focus on the actual implementation of energy storage as part of smart energy transition solutions.
A relevant quote from the report produced by SolarPower Europe ‘European Market Outlook For Residential Battery Storage 2020–2024’: “Last year, 745 MWh from 96,000 systems were installed, representing a 57% annual growth rate. The foundation for the European residential BESS sector was laid by a handful of countries, where a large residential solar market already, exists – namely Germany, Italy, UK, Austria, and Switzerland. These Top 5 markets absorbed over 90% of all BESS installations in 2019 and are also responsible for a similar level of the nearly 2 GWh of operating residential storage capacity in Europe so far.”. (Note: BESS stands for Battery Energy Storage Systems).
Please refer to the information accessible via the link by clicking here. The analyses and forecasts are a ‘must read’ for all working in the energy transition field.
The abovementioned report fully supports the developments and implementation success experienced elsewhere, by for example iwell; please refer to their website.
Another good example worth exploring, is the independent Dutch solar platform Zonatlas NL, freely accessible for individual households and individual business (e.g. SME). Zonatlas has for several regions in the Netherlands an on-line battery storage option available in case an individual household wants to make a connection with the energy generated by solar panels – please refer to the following website for more information: https://www.zonatlas.nl/start/
The author of this blog as well as the Dutch companies EnShared and Zonatlas made a contribution to the Position paper ‘Virtual Energy Plants through Energy Commons’, which was recently issued by the independent foundation Future Energy Systems – please refer to: https://fes.institute/en/position-paper/. Energy storage prominently features in this Paper, as it is an essential component in creating virtual energy plants. And when, for example, sufficient storage capacity is connected to the micro-grid, self-balancing and the trading of stored electricity can also be exploited. These storage systems provide another important form of flexibility to the market and will gain greater public interest as the share of renewables increases.
IEA World Energy Outlook 2020 clearly states: “Solar becomes the new king of electricity…..”. This makes the role of storage more important for affordable and reliable energy systems in the near future.
For further information, please click here, but the following quotes from IEA’s WEO 2020 are worth mentioning here:
“Renewables grow rapidly in all our scenarios, with solar at the centre of this new constellation of electricity generation technologies. Supportive policies and maturing technologies are enabling very cheap access to capital in leading markets. With sharp cost reductions over the past decade, solar PV is consistently cheaper than new coal- or gas fired power plants in most countries, and solar projects now offer some of the lowest cost electricity ever seen.”.
“Storage plays an increasingly vital role in ensuring the flexible operation of power systems, with India becoming the largest market for utility-scale battery storage.”.
In the Netherlands many realise that the current and past tax and subsidy regime hasn’t really supported the large scale implementation of energy storage to date. Nevertheless, we observe good examples of implementation in for example apartment buildings where a smart battery system significantly lowers the peaks in the power supply resulting from the elevator usages.
It’ll be obvious that in the Netherlands we should focus more and more on the smart introduction of battery and energy storage systems.
We will continue to write about future developments.
A Virtual Energy Plant through an Energy Common is a network of local small- and medium scale power and heat generating units such as wind farms, solar parks, and Combined Heat and Power (CHP) units, as well as flexible energy consumers and storage systems. The interconnected units are dispatched through an automated central ‘control room’ of the Energy Common thereby remaining independent in their operation and ownership. The objective of a community based Virtual Power Plant is twofold. First, it needs to generate enough renewable energy for the local community. Secondly it should relieve the load on the electricity grid by smartly distributing the power generated by the individual units during periods of peak load. In case of a surplus, the combined power generation and power consumption of the networked units in the Virtual Energy Plant can be traded on the energy exchange.
In any case, it shows that local home/neighborhood electricity storage is becoming increasingly important.
It is also important to register solar panels in time.
According to Solar Magazine: “The grid operators have recently renewed the website energieleveren.nl. This has also changed the way in which owners must register their solar panels with their grid operator. Dutch Minister Wiebes asks consumers to register on time: ‘It is an obligation in the Electricity Network Code for consumers and companies to report the installation of solar panels. That is why I call on private individuals to always contact the network operator in advance to obtain the most up-to-date information. The network operators depend on these signals to be able to take into account any necessary adjustments at an early stage.’….”.
The research company BloombergNEF (BNEF) opened a recent article with the following sentences: “Solar PV and onshore wind are now the cheapest sources of new-build generation for at least two-thirds of the global population.” And they continued in the same paragraph: “Battery storage is now the cheapest new-build technology for peaking purposes (up to two-hours of discharge duration) in gas-importing regions, like Europe, China or Japan.”.
Reading BNEF’s research it confirmed our own views that a major structural change in our energy system is happening. The International Energy Agency (IEA) in a separate article not only emphasised the fact that the Covid-19 pandemic has created the largest shock to the global energy system in more than seven decades, but is also observing a major shift towards low-carbon sources of electricity. IEA states in a recent message: “low-carbon sources are set to extend their lead this year to reach 40% of global electricity generation”.
Affordable battery storage will significantly enhance the integration of decentralised sustainable energy generation on a large scale, providing nice benefits to individual households and businesses.
Very interesting reports and news facts and hence we recommend you to read the following:
In an article published today, Statistics Netherlands (CBS) states:
“In 2019, electricity production from renewable sources amounted to 21.8 billion kilowatt hours (kWh), in 2018 this was 18.5 billion kWh. Windmills had the largest share of this, at 49 percent, but this has fallen compared to 2018 (54 percent). Biomass accounted for 26 percent, solar power for 24 percent of renewable energy production. Renewable electricity production accounted for 18 percent of electricity consumption in the Netherlands in 2019, compared to 15 percent in 2018. ”
CBS further concludes:
“40 percent more solar power through more solar panels. The production of electricity with solar panels increased from 3.7 billion kWh in 2018 to 5.2 billion kWh in 2019. That is an increase of more than 40 percent, which is directly related to the increase in the installed capacity of solar panels. The total capacity of solar panels grew by approximately 2 400 megawatts in 2019, and is estimated at 6 900 megawatts. The largest part of this increase (70 percent, or 1 700 megawatt) is due to new, large installations on roofs of buildings and on the ground. ”
Global solar PV market set for spectacular growth over next 5 years
According to the IEA: “The installation of solar PV systems on homes, commercial buildings and industrial facilities is set to take off over the next five years, transforming the way electricity is generated and consumed, according to the International Energy Agency’s latest renewable energy market forecast.
These applications – known collectively as distributed PV – are the focus of the IEA’s Renewables 2019 market report. The report forecasts that the world’s total renewable-based power capacity will grow by 50% between 2019 and 2024. This increase of 1,200 gigawatts – equivalent to the current total power capacity of the United States – is driven by cost reductions and concerted government policy efforts. Solar PV accounts for 60% of the rise. The share of renewables in global power generation is set to rise from 26% today to 30% in 2024.” Read more ….
IEA Energy databases and data services including World Energy Statistics and Balances
Worthwhile to read IEA’s recent release of the 2019 edition of energy databases and data services including World Energy Statistics and Balances, the IEA Key World Energy Statistics, etc. Read more ….