Dutch Nuon ends green certificate deal with Norway’s Statkraft
Dutch utility Nuon has decided to stop buying green certificates on energy generated by Statkraft-owned wind farms, Smøla 1 and 2 and Hitra, terminating an agreement struck in September 2002 between the two utilities.
Nuon cited two main reasons behind the move: “As expected regulatory support for this type of energy supply so far has not materialised, Nuon has decided to terminate the contract with Statkraft,” read a company statement. In addition, Nuon said: “The termination of the obligation follows Nuon’s strategy of focusing on growth in its core-countries the Netherlands, Belgium and Germany”.
A spokesman from Nuon said green certificates are currently “worthless” in The Netherlands as a real market has yet to take off. “Initially we intended to buy the green certificates from Statkraft in order to sell them to the Dutch or Norwegian government under respective renewable schemes but this never came about”. He added the renewable regime has recently changed in The Netherlands with the government no longer supporting green energy abroad. In Norway, the planned Nordic green certificates market has been delayed until 2007.
“The agreement will lead to a net loss of approximately EUR 85 million, of which …EUR 55 million had already been provided for in 2004…The remainder will be booked in the fourth quarter of 2005,” said Nuon.
The Dutch utility will retain the right of 50% of profits from possible future sales of green certificates from the three wind farms. The initial agreement obliged Nuon to purchase the certificates form the Norwegian wind farms for a period of 15 years after each farm went into operation.
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