3 minute read
The missing piece
ACTION AGENDA FOR ACCELERATING ENERGY TRANSITION
The Netherlands has an ideal starting position to become an international leader in the production of wind energy, thanks to excellent opportunities for offshore wind energy, strong energy-intensive clusters, and the existing energy infrastructure.
Photo courtesy of Ørsted.
THE LAUNCH OF THE WIND MEETS INDUSTRY COALITION EARLIER THIS YEAR, ALONG WITH ITS ACCOMPANYING ACTION AGENDA, REPRESENTS A MAJOR STEP IN ACCELERATING THE SUSTAINABLE ENERGY SUPPLY. RELYING ON A BROAD support base, a coalition of Energie-Nederland, NWEA, VEMW, and the Top Sector Energy presented an action agenda to link industrial demand for green energy to the large-scale supply of offshore wind energy.
By actively joining forces, rather than not waiting for each other, the parties are laying the missing puzzle piece from the Climate Agreement: the connection between the supply and demand sides of sustainable energy.
Starting position The Netherlands has an ideal starting position to become an international leader in the production of wind energy, thanks to excellent opportunities for offshore wind energy, strong energy-intensive clusters, and the existing energy infrastructure. Sustainable electrification of the (energyintensive) industry is not possible without offshore wind. The certainties required for successful long-term sustainable operation require smart cooperation in the short term. The collaboration’s strength lies in broadmindedly looking at each other’s business cases, technology, and working method. The wind sector has, for example, a great deal of knowledge about the operation and value of flexibility. This knowledge can help industry with the complex considerations of investing to make production processes more flexible.
Main points of the action plan The parties are now experiencing all kinds of barriers and thresholds, making it more difficult to start making the industry sustainable. A chicken-egg discussion has arisen, hindering further cross-fertilisation. The coalition focusses on removing these obstacles. To this end, the action plan identifies important issues and formulates concrete actions and preconditions, including those in the field of government or network operators. The main points identified by the coalition in its action plan are:
• The timely availability of electricity infrastructure. The coalition makes joint plans for supply and demand and examines how it can contribute to the faster construction of infrastructure onshore and offshore, hereby creating a stronger dialogue with network operators and the government. • The coalition will propose a path for aligning investments and will set up a long-term electrification agenda with the government. • The coalition will organise knowledge sessions between the sectors. This allows sectors to innovate and seek financing together. • The coalition is investigating how the energy system can become more flexible by better matching supply and demand, both in the short and long term. It will also make recommendations on regulations and stimulating government policy.
Joint path with certainty for all involved The action plan provides certainty on parts of the business case that are less easily influenced by individual parties: • The wind energy sector will have more certainty on the growth in demand for sustainable electricity and green hydrogen. This provides more certainty on income and reduces financing risks and thus the costs of offshore wind. In addition, growth in the sector yields economies of scale and even lower costs. • The energy-intensive industry will gain better insight into the costs of electrification. Connecting supply and demand development clarifies whether, when, and in what form renewable electricity will become available and at what costs. This provides more certainty on the costs of the business case for electrification and offers prospects for upscaling electrical processes and therefore cost reduction. • In addition, certainty on the growth of supply and demand provides the grid operator with certainty on which investments to make in the transmission grid. Finally, certainty on the demand and supply coupling ensures lower costs for society and an accelerated realisation of climate goals. • If the government guarantees the necessary laws, regulations, and incentives, both sectors can take their responsibility in achieving the objectives as agreed in the Climate Agreement.
i. windmeetsindustry.com
