Coby van der Linde, director Clingendael International Energy Programme:
"Government must make choices for renewable energy supply"
Renewable energy that is also affordable – that’s what all of us want. But the route we have to take to get there isn’t so straightforward. Coby van der Linde, director of the Clingendael International Energy Programme, outlines some essential criteria. "I expect things to be made more mandatory in the domain of climate policy."
Nuon aims to operate in a climate-neutral manner in 2050. "But the transition from the current energy supply to a sustainable future is still very uncertain," Van der Linde stresses. "The economic crisis and the disappointing climate summit in Copenhagen have to be taken into account. Nobody knows how quickly the economy will recover. And there are no binding international climate agreements yet. Uncertainty is hard for companies that want to make substantial investments in renewable energy production."
Clever investments
What is clear is that the Dutch government has a high level of ambition, with a target of 20% renewable energy in 2020. "The policy is strict and is likely to get even stricter – even after 2020," says Van der Linde. "Despites the uncertainties we have to really get going with it now, but the timing economics have to be right."
The question is what the most suitable investments are. Investing in flexibility seems to be a keyword, Van der Linde believes. "Among other things, this means flexible power plants that can be ramped up and down quickly and can thereby respond to the fluctuating and sharply rising availability of wind energy. These include power plants that make use of gasification technology, such as the planned Nuon Magnum power plant."
Flexible energy supply
Flexibility in terms of fuel choice is at issue here too. For the time being we still need fossil fuels, as well as sustainably generated energy, to meet the demand for energy. There are several obvious options for the Netherlands. For instance, natural gas is a logical choice: it is available in large volumes and is relatively low in CO2 in comparison with other fossil sources.
Coal is needed for the time being as well, although the have to keep focusing on the ideal situation: a renewable energy supply. This means, for example, choosing to use the ever-necessary fossil fuels efficiently as possible and employing a system of CO2 capture and storage (CCS) to cut CO2 emissions drastically.
Collaboration
"The challenge for energy companies at the moment is, despite the uncertainties, to set up a good system that leads to a renewable, affordable and secure energy supply," concludes Van der Linde. "Big investments are involved here, so the government has an important role to play as well.
For instance, there is uncertainty about the development of the CO2 price, while a reasonable price is necessary to enable investments to be made in among other things CCS. This is why companies need a clear policy when they make their choices. The government must give direction and create clarity on matters such as the climate policy and the prospects for CCS."
