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Partnership with utilities and the impact of liberalisation – Utrecht, The Netherlands
Introduction
The municipality of Utrecht and the energy utility company ENECO/REMU worked together in a partnership called FACE to provide a joint platform for promoting projects to promote energy efficiency and renewable energy.
Problem
Utrecht has been chosen as the location of the largest urban extension in the Netherlands, Leidsche Rijn , identified under the VINEX-location1 policy of the national government. This development straddled the boundary between two municipalities, Utrecht and Vleuten-De Meern (pop. 20,000) which merged in January 2001.
In total 30.000 dwellings will be constructed in this area by 2015 increasing the total population of the combined community to ca. 350.000. Only a relatively small proportion of the population (38 %) live in owner occupied houses, the largest share (49 %) being rented though housing corporations which therefore are very significant players in promoting energy efficiency.
The energy utility company ENECO/REMU is becoming much more commercially minded as a result of the liberalisation of the energy market. The former local authority shareholders were the Province of Utrecht, the city of Utrecht and the city of Amersfoort.
The Province and the city of Amersfoort sold their shares at the start of liberalisation, with Utrecht holding out for a bit longer. This was a real dilemma, since selling its 35% share may make economic sense if the dividends of the shares decrease as a result of liberalisation. However, keeping the shares would safeguard the influence of the city with regard to grid management and protection of small consumers.
Description
The energy utility company ENECO/REMU is becoming much more commercially minded as a result of the liberalisation of the energy market. A partnership (FACE) was formed with the municipality.
The approach chosen was mainly to centre on co-ordination and operate via the activities of third (market) parties. After the completed liberalisation process FACE slowly disappeared. However, the company remains dedicated to the sustainable goals set within FACE.
Approach
The municipality and ENECO/REMU worked together in a partnership called FACE to provide a joint platform for promoting projects to promote energy efficiency and renewable energy. In addition the municipality and ENECO/REMU have set up their own projects. After liberalisation FACE slowly disappeared.
The majority of these projects are identified in the energy plan drafted in 1988 and which started to be implemented in 1991. The energy plan was developed in the framework of the GEA. The target identified was a reduction of 25 % on the gas consumption in 1986.
In 1995 the energy plan was updated and the FACE programme was set up. The approach chosen was mainly to centre on co-ordination and operate via the activities of third (market) parties.
Results
ENECO/REMU participates in development projects for renewable energy, e.g. the Sunpower project which is promoting integrated solar energy for 500 houses (1 MW-project), and supplies energy efficient installations like CHP and heat pumps.
For two years now, ENECO/REMU has offered green electricity in its range of products. Taking the exemption of REB (Regulating Energy Tax) into account, this costs the small consumer 0.009 Euro per kWh extra. The company is negotiating with municipalities for the construction of wind turbines and has plans to build a biomass installation fuelled by waste wood.
Contact info
Municipality of Utrecht
Ms Inge van de Klundert, tel. +31 30 2864115
Project start date
01/01/1991
Links
The City of Utrecht is a partner in the Energie Cités Network

Download the 'Partnership with utilities and the impact of liberalisation – Utrecht, The Netherlands' Report (PDF, Eng, 198 KB)

Document type
case
Themes
Urban Policy > Urban environment
Keywords
Environmental sustainability
 


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