The Netherlands has ambitious targets for sustainable energy production by 2020, including 30% reduction in CO2 emissions and 20% of total energy generation from sustainable sources. To stimulate sustainable energy, the government offers subsidies through the SDE program for various renewable technologies like solar PV, wind, biomass, and hydropower. The SDE provides long-term compensation to cover above-market costs of sustainable energy production for up to 15 years. NUSEP is a non-profit organization that supports collaboration between Dutch and Ukrainian companies on projects focused on energy efficiency and sustainability.

1. Stimulation of Sustainable Energy Production in the Netherlands I. Starikov NUSEP Kyiv, 11 December 2009

2. Welcome The Netherlands Targets of sustainable energy Stimulation tools Sustainable energy production subsidy About NUSEP

3. The Netherlands 200 x 300 km: 134 th largest country, 7% of Ukraine 16 th largest economy 16.5 mln people, 33% of Ukrainian population 3 d largest investor in Ukraine

4. The Netherlands The Netherlands Priorities of Dutch energ y efficiency policy Sample projects About NUSEP platform

5. Targets 2020 30% reduction of CO2 emissions 1990 2% energy consumption reduction per year 20% sustainable energy generation 35% sustainable electricity All new buildings completely energy-neutral

6. Figures 6m 2009 8,5% renewable electricity production

7. Stimulating Tools Subsidy for sustainable production (feed-in) Tax incentives for EE and environment investment deduction from corporate tax free depreciation Research subsidy academic corporate feasibility studies Greenhouse gases reduction subsidies: CO 2 and other gasses

8. SDE Subsidy Long-term security for SE investment Compensation of higher cost price of SE over traditional sources Up to 15 years Budget 2009: € 2.6 billion Energy sources: Solar PV Wind on land and sea Biomass Hydropower

9. SDE Mechanism Legend basic SE cost price market price average traditional energy rate basic traditional rate (2/3 of average rate) subsidy amount extra profit

10. SDE Guidelines Basic cost price is established yearly Proposal submission per day between April and November External certification (wind, biomass) Monthly advance payments of 80% Yearly settlement until April next year Digital submission for PV

11. SDE Solar > 0,6 kWp - ≤ 15 kWp 52,6 - 27,3 = 25,3 €ct per kWh basic cost price – sell rate = subsidy > 15 kWP – ≤ 100 kWP 45,9 - 7,6 = 38,3 €ct per kWh 2009: budget for 20 MW

12. SDE Biomass Sustainable electricity Basic cost price: €0,115 – 0,177 per KWh Sustainable gas Basic cost price: €0,218 – 0,583 per m3 Residual heat

13. SDE Wind Compensation for unprofitable top 2009: €0,04 per KWh, 1760 full load hrs.

14. SDE Hydropower < 5 meter 3800 full load hours 2009: budget for 13 MW > 5 mete r 4800 full load hours 2009: budget for 7 MW No traditional windmills

15. Perspective 2010: Warm Housing Subsidy Sun boilers Heat pumps Micro cogeneration 2012: New SDE Financing by “gray electricity” tax: €25 - 125 per household per year

17. NUSEP is... … non-profit union of Dutch companies … supporting collaboration … between the Netherlands and Ukraine … in the energy sector … for private sector and governmental projects … with focus on energy efficiency in built environment

18. NUSEP is... Partner for sustainability in energy Energy efficiency projects in Ukraine: technology engineering finance

19. Questions? www.nusep.org