-- Promoting energy conservation -- Transition to alternative sources of energy -- Both within a national and European context
UTRECHT, The Netherlands, Dec. 7, 2004 (PRIMEZONE) -- "The Dutch government should vigorously promote the transition to alternative sources of energy and develop a sustainable energy conservation programme. Both measures would reduce CO2 emissions and the economic dependence on fossil fuels, which primarily come from politically unstable regions and represent finite supplies." Mr H. (Bert) Heemskerk, Chairman of the Executive Board of Rabobank, put forward this view during the presentation of the economic outlook for 2005 on Tuesday, December 7.
The disadvantages of fossil fuels
The availability of sufficient clean sources of energy is vital for sustainable, healthy economic growth. Heemskerk asserts that reducing the use of fossil fuels should therefore be made a top priority. It is general knowledge that fossil fuels cause the greenhouse effect and are consequently extremely harmful to the environment. The recent sharp rise in oil prices has a strong impact on the economy and consequently illustrates the vulnerability of the dependence upon fossil fuels. At current production levels, global oil reserves could be depleted within forty years. This is further complicated by the fact that fossil fuels principally come from regions that are less stable politically. For example, 45% of all European oil imports come from the Middle East.
Energy conservation and alternative sources of energy
Heemskerk pointed out two key ways to reduce the reliance on fossil fuels. First of all, energy conservation should be given greater attention because there are still major gains to be realised in this area. This could include measures aimed at reducing the number of workstations that are not permanently occupied, encouraging teleworking and employing energy performance standards when building new housing developments. Energy conservation also simplifies the transition to alternative sources of energy because it decreases the amount of energy required from these sources in order to meet the demand.
Utilising alternative sources of energy is another means of reducing the dependence on fossil fuels. It must be noted, however, that not every alternative source of energy is viable. There are often both advantages and disadvantages connected to these sources of energy. Wind energy, for example, has considerable potential as a clean, inexhaustible source of energy that can be utilised effectively in the Netherlands. This is, however, countered by the fluctuating supply and higher costs. In contrast, biomass is not entirely environmentally friendly, but it does have significant potential. A third example is nuclear power. This form of energy does not produce CO2 emissions, is relatively inexpensive and has considerable potential. But nuclear power also has major drawbacks, including radioactive waste and lack of public support. Heemskerk noted in this regard that nuclear energy accounts for 76% of France's total energy supply.
While the Netherlands appears to hold a leading global position in the field of sustainability, the development of alternative sources of energy is still in its infancy with only 3.9% of the total energy consumption in the Netherlands coming from sustainable sources of energy. In contrast, the European percentage is 5.6% (primarily wind energy). The production of non-fossil energy is demonstrably higher in other countries. For example, windmills generate 19% of the electricity in Denmark and hydropower accounts for 99% of the total electricity supply in Norway. In developing countries, 35% of the energy supply comes from bio-energy. Rabobank concludes from these figures that the Netherlands is clearly lagging behind in the development of sustainable energy.
Strong government policy is crucial
Heemskerk is convinced that the government should consequently take the lead in the development of large-scale projects (such as windmill islands off the Dutch coast) and actively commit to creating the conditions that would result in a reduction in the use of fossil fuels. Investment in energy conservation and the utilisation of alternative sources of energy should be rigorously promoted. It is also imperative that the procedures be shortened. For example, the application procedure for obtaining a permit to construct windmills on land currently takes four to seven years. The underlying regulations are also amended on a regular basis (a total of five times since 1995, including four times since 1999). The government should consequently also demonstrate itself as a more stable partner. In closing, the Chairman of the Executive Board stressed the importance of formulating a more strategic European energy policy. Heemskerk is convinced that European governments should take a more concerted approach to the application of new energy technologies and align the European R&D policy accordingly. He furthermore calls for a broad unified European system of energy taxes.
Both the 'Energie: Het belang van alternatieve bronnen' ('Energy: The importance of alternative sources') report and 'Outlook 2005' are available on www.rabobankvisie.com.