MEP: Environmental Quality of Electricity Production (Milieukwaliteit van de Elektriciteitsproductie)

The MEP is a kWh subsidy paid to domestic producers of electricity from renewable sources and CHP who feed-in to the national grid. The subsidy takes the form of a fixed premium paid on top of the price of wholesale electricity.The premium was paid to installations established after 1 January 1996 for a maximum of ten years, except for CHP. The MEP differentiates the level of producer support for renewable energy technologies. In 2006, the highest support level was granted for offshore wind, PV, small (< 50 MW) stand-alone biomass installations, hydro, wave and tide energy (EUR cents 9.7/kWh ). The lowes tariff was EUR cents1.3 per kWh for landfill gas and digestion. Onshore wind, large biomass and mixed biomass received premiums between these rates. For onshore wind, the production support is for a maximum of 18 000 full load hours in ten years. As of 2007, the feed-in tariff was financed through the national budget, a departure from previous funding through a levy on all connections to the electricity grid in the Netherlands. This levy was for 100%, compensated by means of a reduction of the REB on fossil energy consumption. The MEP producer support existed alongside a partial REB exemption for renewable electricity consumption, adapted in 2004 and 2005 in line with the phasing out (in two steps of EUR 0.015/kWh) of the REB renewable energy tax exemption. On 18 August 2007, the Dutch Minister of Economic Affairs suspended MEP subsidy of new projects, given information indicating that the Dutch renewable electricty objectives for 2010 (9%) would be achieved. A new scheme was introduced in April 2008 (see separate entry).

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