Renewable Energy - Projects

Conclusions

The evaluation of international experiences with the obligation system gives rise to a mixed picture. Although an obligation in theory is effective and cost effective, it seems too early to conclude that the system delivers these promises in practice. On the one hand this is due to the limited period of implementation that makes it hard to distinguish between the direct effect of the system and some teething problems that will be solved in due time. On the other hand, the conclusion can be drawn that the obligation is a complex system, which will only function well if designed carefully. It does seem worthwhile, however, to continue monitoring the experiences with the obligation system abroad, because this will further reveal whether the system is indeed effective and cost effective in practice. In the longer term, e.g. beyond 2010, the introduction of an obligation system in the Netherlands could be considered. Finally, as the design of support schemes is being improved, it appears that the basic concepts of both the obligation system and the feed in system have been refined in such a way that the two systems are gradually converging. An important difference between the two systems however remains, namely that an obligation system relies more on market forces whereas the feed-in system is based on a greater involvement of the government.