- Increasing welfare in Germany and the Netherlands by benefitting from the coordination of energy markets.
- Benefits in Europe 15 billion annually and NL/GE a few billion direct benefits and huge potential for indirect benefits.
WEC has performed a study as to the potential benefits from coordination of the energy markets in the Netherlands and Germany, based on the assumptions in the Energieakkoord and the recent German strategy resulting from the experiences of the Energiewende. The outcome is that both countries would benefit substantially, would the implementation of their policies be aligned. It is therefore a plea to governments to follow that path on a bilateral scale.
Germany is making significant progress as to renewables production. The Netherlands is by history a gas producing country. Both countries have overcapacity in those areas. By having gas fired power plants in the Netherlands, serving as back up for renewables (wind) in Germany an overall reduction of capacity can be achieved, resulting in significant benefits. Gas to replace coal does also contribute to the reduction of CO2 emission. Furthermore this enhances diversification in gas supply in Germany. Open markets allow for larger volumes in gas exports which will result in lower prices for energy. These measures will also benefit to businesses in both countries, allowing them to have a better competitive position.
The study is the result of a co-operation with certain energy companies. Nuon-part of Vattenfall, E.ON, Vopak, PwC, DNV GL. In Europe there is already since a decade discussion about coordination of energy policies between the countries. However progress is limited.
On the basis of the Enegieakkoord in the Netherlands and the present energy policy in Germany with experiences from the Energiewende we have studied the possibilities of cooperation between both countries and the potential of the benefits. The potential benefits can be released by aligning regulation, tax and subsidies between both countries and by allowing an open market.
WEC Netherlands – under formation
A.Groenenboom, H. van Heijningen, P. Smink, J. van Hoof