Netherlands, Photovoltaic technology status and prospects - Contribution to the Annual report 2003

Netherlands
Photovoltaic technology status and prospects
Job Swens, Novem, and Willem van der Heul, Ministry of Economic Affairs

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Last updated: 30 May 2004

General Framework

Fig. 1 - Laboratory role to role module from Heliantos project.

In 2003, the investments in solar PV in the Netherlands were exceptionally high, especially by private house owners. This was due to several reasons. Starting January, no construction permits were needed for installing PV systems. Also, the dawn of the liberalized energy market and the green image of solar panels stimulated utilities to increase their subsidies for PV. Together with the Energy Premium Regulation (EPR) of 3,50 EUR/ Wp - 3,85 EUR/ WP, the total subsidy given could, in some cases, amounted to 5,35 EUR per Wp. At the same time, a drop of about 10 % in module prices and a strong competitive market caused the prices of small systems to drop below 6,00 EUR per Wp and even further in large projects. Although the EPR subsidy did not apply for most of the larger, professional projects, these subsidy schemes were so successful that, already in September, it became clear that the budgets of the EPR would be insufficient. The government subsequently announced that the scheme would be closed by mid October. For PV however, the result was a snowball effect: shortly after the government’s announcement, the support budgets of the utilities were in danger of running out as well, causing the demand to rise even more. First estimates of Holland Solar from December 2003, based on PV panel import data from members, show that the annual volume turn out to be as high as 20-25 MWp (3 - 4 times the volume of 2002).

The reduction of the EPC (Energy Performance Co-efficient) threshold value by 20 %, which was projected for 2004, and which would have been favourable for BIRES (Building Integrated Renewable Energy Sources), and PV and solar heat in particular, was postponed towards 2006. This was done to allow the building industry, which is under pressure due to the economic set-back, to prepare for the extra efforts needed for this extra requirement.
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National Programme

Last year, the long-range Renewable Energy Programme (BSE-DEN), carried out by Novem, consisted of two calls, one in August and one in December. This programme supports R&D, demonstration, feasibility and knowledge transfer projects for all forms of renewable energy. The main evaluation criteria for this programme are innovation and overcoming thresholds; expressed in the contribution of anticipated spin-off projects to the Dutch energy production in 2020. The first tender in 2003 showed an emphasis on biomass and wind (resp. 17 and 7 projects awarded), comparable attention for thermal solar energy, PV and heat pumps (average of 3 projects) and no support for geothermal and ambient temperature applications. Tender 6 (end 2003) is still under evaluation, but a similar distribution of support is expected.

For highly innovative PV research projects, the New Energy Research (NEO) subsidy scheme was reopened in April 2003. However, since this subsidy scheme has a relatively small budget for a wide range of energy research subjects, this will be a small inducement for PV research.

During 2003, the national priorities for government financed Energy R&D programme (EOS) were determined. This was done during a wide consultation amongst energy research and policy professionals. The main criteria in this evaluation were the contribution to the Dutch energy production in 2010, 2030 and 2050 and the level of expertise in the Netherlands. PV came forward as one of the main areas of interest, with specific strong positions for polycrystalline silicon and inorganic thin film technologies. The actual EOS programme will be formulated and implemented in 2004.
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Research and development

Fig. 2 - Thanks to the improved InterSole, integration of solar panels between the roof tiles is easier than ever.

Solar cell research in the Netherlands continues to focus on improving polycrystalline and low temperature thin film silicon production. Within the flexible thin film silicon project Heliantos, in which the cell is built up on a temporary superstrate, Akzo Nobel Chemicals and Shell Solar constructed a role-to-role pilot line, which is due to be fully operational in 2004. Another important achievement in 2003 was the acceptance by the EU of the ECN coordinated project “Crystal Clear,” in which several outstanding EU research facilities and the most important European PV industries co-operate in pre-competitive research with the objective of reducing module cost to below 1 EUR/Wp.

No new developments can be reported on the research of inverters. In the field of roof integration, the internationally well-received development of the mounting construction PV-wirefree (for both support and current conduction) resulted in a proof-of principle project that started January 2003. This project is to be followed up by field-testing in 2004, and a market introduction in 2005. Philips, ECN, Ecofys, Lafarge and Tyco are cooperating in the development of a new type of AC-module with flexible mounting. Econergy further improved its successful products InterSole and ConSole. Finally, Scheuten Solar expanded their research facility in Venlo, leading to 20 people working on CIS based thin film solar cells.
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Industry Status

With several new and extended activities and one large industry leaving, 2003 was a turbulent year for the Dutch PV industry. With the closing of the Shell Solar production facilities in Helmond, the Dutch PV module production was decreased to practically zero. The two small companies that are now responsible for the total Dutch PV module production are Logic and DOPT. On the other hand, new initiatives were taken up to start solar cell production and AKZO started the construction of a pilot line. While NKF stopped its activities in solar inverters, other inverter manufactures like Mastervolt and Philips succeeded in bringing new products on the market. Philips even decided to enter the market with full PV systems. The most important Dutch industrial activity was the acquisition of the former Flabeg factory in Gelsenkirchen by Scheuten Solar.
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Demonstration, Implementation and Market Development

In the year 2003, most of the PV solar power, installed in domestic buildings, was a direct result of the Energy Premium Regulation. In just a few months, several housing companies realised large PV systems with a combined power of over 3,5 MW. A good example is the housing corporation "Patrimonium" in Veenendaal, where a total of 1,2 MW was installed on 35 apartment buildings in 3 months. The favourable subsidy conditions caused an interest in mid-sized PV systems. Systems ranging from 1-4 kWp in power were sold to private house owners, enabling a “zero electricity bill” at the end of the year. More attention was given to solar power by campaigns started up by municipalities and utilities, creating more blue coloured roofs in the Netherlands.

The market for PV systems, which are not subsidized by the EPR, such as the market for stand alone systems and large PV electricity generation plants was rather quiet: only a few systems were realized with EC subsidy or other financial support.

Most of the activity was generated in municipalities already known to actively support PV. The City of the Sun project made progress in it’s goal of installing 5 MW in to be developed districts between Heerhugowaard, Alkmaar and Langedijk. In the Rotterdam Zoo “Blijdorp” a 500 kWp system was installed.
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Future Outlook

Fig. 3 - At the Zoo “Blijdorp”in Rotterdam, a 500 kWp system has been realized. Siemens Nederland N.V. (the main contractor) will take care of the maintenance for a period of 20 years.

At this moment it is unsure what the follow-up of the EPR will be. Almost certainly the new scheme will have a limited and closed budget. With the reduction of the EPR, the market for PV in 2004 may decrease significantly; which, according to market parties, could lead to difficult situations for some, especially smaller, companies.

In the Netherlands, tax is levied on the use of energy through the REB (Regulating Energy Taxes). In 2003 the consumption of green electricity was stimulated by a tax exemption, giving households a discount of 2,9 EUR ct per kWh. This tax incentive will gradually be shortened in 2004, to be ended in 2005. Although some utilities announced that they will decrease the prices of green electricity to compensate for the phasing out of the tax exemption, an increase of the price for green electricity is feared to decrease the use thereof in general. For PV however, this measure has no effect: the REB is only levied on electricity purchased from a utility. Moreover, the removal of the tax exemption will be compensated by an increase of the MEP funding. The MEP feed-in tariff is determined to be 6,7 EUR ct for PV systems that apply for MEP between January 1st and July 1st 2004, but will increase to 8,2 EUR ct for the second part of the year. In 2005, the feed-in tariff for solar-pv will increase further to 9,7 EUR ct per kWh. Since the MEP feed-in tariff seems only profitable for mid- to large sized PV systems, this scheme may become interesting for utilities, project developers and companies which may also benefit from tax deduction incentives like the EIA, but could also be available for cooperatives of private house owners. There is an enormous surplus of office buildings in the Netherlands, and a general shortage of private houses. Logically, best chances for PV in the Netherlands are thus expected in the housing development projects, which can profit from the MEP scheme.