Profitability of cogeneration

Second opinion on conclusions on modelling calculations of ECN and the Ministry of Economic Affairs for the Dutch Parliament

In a communication dated 23 February, 2009 (28665, no. 100) the Dutch Ministry of Economic Affairs stated that new-build cogeneration plant in the Netherlands can in almost all instances compete with other types of generating capacity and consequently require no financial support from the government. In underpinning this conclusion, the ministry used data calculated by the Netherlands Energy Research Centre, ECN, in a report entitled (in translation) ‘Price differential calculations for new cogeneration capacity, 2009’. A number of sectors operating cogeneration facilities have protested at the ministry’s conclusion and the decision not to introduce a subsidy for new-build capacity.

Further to a parliamentary motion by Vendrik and Zijlstra (no. 31239/44), CE Delft has been commissioned to give a second opinion on the model used and the ECN data as well as the route by which the ministry has arrived at the conclusion that (virtually) all categories of cogeneration can be profitably operated.

report (in Dutch)

Authors CE

Martijn Blom
Frans Rooijers

Delft, September 2009