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Belgium


MARKET STRUCTURE

 

With a production of 1.1 per cent RES-E of gross electricity consumption in 1997, Belgium was at the bottom of the EU-15. National energy policies are implemented separately among the three regions of the country, leading to different supporting conditions and separate, regional markets for green certificates. Policy measures in Belgium contain incentives to use the most cost-effective technologies. Biomass is traditionally strong in Belgium, but both hydro power and onshore wind generation have shown strong growth in recent years.


KEY SUPPORT SCHEMES

 

Two sets of measures are the key to the Belgian approach to RES-E:


  1. Obligatory targets have been set (obligation for all electricity suppliers to supply a specific proportion of RES-E) and guaranteed minimum prices or ‘fallback prices’ have been foreseen. In the Walloon region, the CWaPE (Commission Wallonne pour l’Energie) has registered an average price of € 92/MWh per certificate during the first three months of 2006. In Flanders, the average price during the first half of 2006 has been around € 110/MWh (VREG – Regulator in Flanders). In all three of the regions, a separate market for green certificates has been created. Due to the low penalty rates, which will increase over time, it is currently more favourable to pay penalties than to use the certificates. Little trading has taken place so far.
  2. Investment support schemes for RES-E investments are available. Among them is an investment subsidy for PV.




Table I.2: Implementation of RES-E in Belgium


      Flanders Walloon Brussels Federal
Target per cent   2010: 6 per cent
2007: 7 per cent RES-E & CHP 2004: 2.00 per cent
2005: 2.25 per cent
2006: 2.50 per cent
 
Duration years   10 10    
Minimum
price1 (fixed)
€/MWh Wind offshore n.a. n.a. n.a. 902
€/MWh Wind onshore 80 65 all RES-E   50
€/MWh Solar 450   150
€/MWh Biomass and other 80   20
€/MWh Hydro 95   50
Penalty €/MWh   €125 (2005-10) €100 (2005-07) €75
(2005-06)
€100
(2007-10)
 

Notes: 1Min prices: for the Federal State the obligation to purchase at a minimum price is on the TSO; for the regions the obligation is on the distribution system operator (DSO).
2Wind, first 216 MW installed capacity: €107/MWh 

 


FUTURE TARGETS

 

For Belgium, the target for RES-E has been set at 6 per cent of gross electricity consumption by 2010. Nationally, the target for renewable electricity is 7 per cent by 2007 in the Walloon region, 6 per cent by 2010 in Flanders and 2.5 per cent by 2006 in Brussels.

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