Go to (on this page): content, search field of menu.
U bevindt zich op: Home › Publications › Audits › 03
Sustainable energy production schemes (MEP and SDE); Impact Assessment 2010
In this report we look back at an audit we carried out at the request of the House of Representatives of the Grant Scheme for the Environmental Quality of Electricity Production (MEP) that we published in May 2007. The MEP must lead to 9% of electricity consumption in the Netherlands being generated from sustainable sources. Under the MEP, energy producers receive a government grant for the green electricity they produce from, say, biomass or wind power. The scheme was closed to new applications in August 2006 because the minister thought the MEP goals for 2010 would be achieved without needing to award new grants. In April 2008, the Minister of Economic Affairs (EZ) introduced a new grant scheme for sustainable energy: the Sustainable Energy Production Scheme (SDE). When drawing up this successor to the MEP, the minister took account of the findings and conclusions of our earlier report.
We found that the SDE takes account of the findings we had made
in 2007. Ceilings have been set on the grants, for example, and a
link is made to the actual price of electricity. To some extent,
this reduces the open ended character and the inconsistency in
payments that bedevilled the MEP. We believe there are still risks,
however, in the regularity, efficiency and effectiveness of the two
schemes.
Improvements can still be made in the information provided to
the House of Representatives. The obligations in the Ministry of
EZ's budget will be set before the grant ceiling is set for the
SDE. Since the SDE obligations are based on the grant ceiling,
significant adjustments will have to be made during the budget
year. The introduction of a proposed new financing method based on
a charge harbours the risk of reducing insight into the MEP and SDE
obligations and expenditures. The sums concerned in this form of
financing usually cannot be identified in the Ministry of EZ's
budget.
Usable sustainable criteria for biomass were not available when the
SDE was drawn up. The criteria that the EU recently decided upon
must still be implemented. For the time being they relate solely to
liquid biomass and will apply only to decisions that are taken
after the implementation date. They are therefore not applicable to
ongoing MEP projects, which currently receive most funding, or to
SDE grants on which a decision has already been taken.
We also found that an audit protocol has still not been made
compulsory for the auditor. This is particularly important now that
the sustainability criteria will not be implemented until the end
of 2010. With regard to effectiveness, finally, the goal for 2010
(9% sustainable electricity production) is within reach. The
Netherlands is therefore performing well in comparison with other
EU member states.
The Ministry of EZ should provide more transparency in advance – in the budget – on the adjustments that will be made during the budget year after the grant ceilings are set. In our opinion, the ministry should introduce an audit protocol quickly. Action must also be taken for the implementation of the sustainability criteria for biomass.
In response to our recommendation that more transparency be provided in the budget on the adjustments that will be made, the minister wrote that the budget does not lend itself for such detailed information but she undertook to consider where additional information could be provided when the 2011 budget was drawn up. Further to our conclusion on the new financing method, the minister notes that the SDE and MEP are currently being implemented by the NL Agency, part of the Ministry of EZ. Expenditure will therefore be recognised in the Ministry of EZ's budget even when the new financing method is used. The minister agrees with our observation that an audit protocol should be prepared as soon as possible. Publication of the protocol is expected in March 2010. The minister notes that necessary measures are being taken to limit sustainability risks in anticipation of the sustainability criteria, such as the exclusion of high risk biomass flows and compulsory sustainability reports.