Our vision of a new energy system
Speech Minister van Economische Zaken mw. M.J.A. van der Hoeven over nieuwe energiesystemen - Bijeenkomst georganiseerd door E.On op de Maasvlakte over programma 'Innovate on' 1 juli 2008
Ladies and Gentlemen,
What are we to make of this?
We are attending an event organised by a power and gas company that runs a coal powered plant. That same company is investing in a broad range of alternative fuels and CCS technology. It's a sign of the times, if you ask me.
I have just come back from Jeddah, where the world's energy ministers talked about ways to deal with the high price of oil. Most measures focused on the short term, but I addressed a more fundamental issue: the need for us to transition to a sustainable global energy system, based on energy efficiency, alternative fuels and cleaner use of fossil fuels.
These three elements feature prominently in the vision of the Dutch government. By 2050, the Netherlands will have a sustainable, affordable and reliable energy system. We will have reduced CO2 emissions by 50% and will generate 40% of our electricity using sustainable sources like wind at sea, biomass and small-scale, decentralised energy generation.
The remaining 60% of our electricity will come from local and foreign gas, nuclear fuel and modern coal powered plants, many of which will use CCS technology. Part of our electricity will be delivered by Western European neighbours. We no longer deal with energy in splendid isolation, but align our needs and systems with those of our neighbours.
In 2050, we also have buildings that require little or no heating and cars that run on electricity, hydrogen and biofuels. Consumers and businesses will be largely self-sufficient when it comes to generating electricity, using heat pumps, solar cells and small wind turbines. Our grid will be intelligent enough to absorb and distribute any excess electricity.
Heightened urgency, new momentum
It's an appealing picture, wouldn't you agree? It sounds good and feels right, particularly when compared to the way we do things now.
We have 42 years left to realise this vision. This seems like a long time, but it's little more than a generation. And the scale and scope of our challenges are staggering. Ongoing growth of the world's economies and the world's population strain our environment and energy supply. We need to deal with C02 emissions, pollution, climate change and our dependence on fossil fuels.
We have been aware of these problems for a while, but what has changed in recent times is the sense of urgency. Climate change is progressing more quickly that we initially believed. Asia's emerging economies are growing even faster than before. The closer we look, the bigger the problem becomes.
But I am hopeful. With our heightened sense of urgency has also come an increased momentum towards action. On June 18, the Dutch government presented its 2008 Energy Rapport to Parliament. In it, we describe our vision of a sustainable energy society and the practical steps we need to take to get there.
Over the next three years, the government will invest euro7 billion in our energy facilities. We will increase international cooperation in energy policy and will adapt the legislative framework so that energy markets and the investment climate will improve. The government will also work together with the private sector to expand the gas roundabout, use the North Sea as a source of alternative fuels and develop a smart and flexible energy infrastructure.
And on July 3, the government is switching to an ever higher gear. That day, I will present the government's new energy innovation agenda, which will serve as our roadmap to the future. In addition to major investments, we want to stimulate imagination and co-operation. We want people to come up with great ideas and share them with other creative geniuses!
The government, academia and the private sector are equal partners in this approach. E.On Benelux is on board as well, with Joost van Dijk chairing the association of the 'foreign' energy companies in the Netherlands. I am supportive of E.On's innovation programme, which sees a consortium of business partners invest euro100 million in a broad range of alternative sources of energy. This approach is aligned with the government's own vision.
I am also happy that E.On is investing in the CATO-2 project. The other day I spoke at an international conference on CCS technology in The Hague. The government has agreed to not decide on the construction of new coal-powered plants, but fossil fuels remain part of the energy mix and CCS technology needs to be part of it.
I told the conference that CCS is potentially valuable but that it has a long way to go before it can be used on a large scale. There are technical obstacles we need to meet and social concerns we need to address. And I told the conference that CCS should part of a broader strategy of reducing, using and storing C02.
Reducing means we invest in new technologies and production processes that lower the amount of C02 that's produced in the first place. Once it is produced, C02 can be captured and fed into other production processes, or supplied to greenhouses. Finally, the C02 has to be stored. Even then we need to consider capture technology within the overall energy system.
Closing remarks
Ladies and gentlemen, E.On's innovation programme and the government-led energy innovation agenda will help us create a world with a sustainable, affordable and reliable energy systems. But we still have a long way to go and the problems seem to be getting more urgent by the day.
I hope, however, you share my sense of optimism and my enthusiasm for taking quick, practical steps to speed up our transition. I believe its possible to live a different way in 2050, and I ask of each of you to think how you can contribute towards that goal. Innovation, cooperation, vision and daring will help us along the way.