News Energy
Phasing out solar energy offsetting in the long run
Due to the fall of the Rutte III cabinet, the phasing out of the netting scheme for solar panels has been put on hold. In the field of fossil energy, the oil price is on the rise this week. The question is whether this increase will continue.
The netting scheme for solar panels has been declared controversial by the House of Representatives. That means the law can only be discussed after the upcoming elections. At the end of January, the Economic Affairs and Climate Committee already asked for the bill to be declared controversial, and the House approved this this week.
Not enough time
The intention was to start phasing out the netting scheme from 1 January 2023. Because the law is now being lifted over the elections, it is uncertain whether this date can be met. Grid operators must ensure that all small consumers have a 'smart' meter before the phasing out of the netting starts. This is necessary to separately measure the feed-in and off-take of energy on the electricity grid. Energy companies also need sufficient preparation time to adjust their billing systems, among other things.
In Solar Magazine, the umbrella organization of energy companies says it is disappointed with the controversial declaration of the phasing out of the netting scheme. It is important for the energy sector to have a definitive legal text before January 2022. It has now become uncertain whether it will be possible to form a new government before then and deal with the law in time. If that fails, there will probably not be enough time for the sector to make all the necessary adjustments before January 1, 2023.
Oil is getting more expensive
From renewable energy to fossil fuel. Oil prices are on the rise this week. Due to uncertainty about the economic recovery after the corona crisis, it is questionable whether this increase will continue. The price of oil has risen slightly this week and Brent crude is trading at $5 a barrel today February 59,53. The price of agricultural diesel has also risen in line with crude oil. Diesel currently costs €98,71 per hundred liters.
Analysts expect oil prices to break above $60 a barrel in the near term. The market is looking for a new balance and it is uncertain how parties will react if the psychological $60 barrier is actually broken. The question is how quickly the economy will recover after the crisis and the associated oil demand will rise. For example, the IMF lowered its growth forecast for the Eurozone by 1% to 4,2% for 2021.
The Boston Consulting Group conducted a survey of the financial position of small businesses, revealing that many companies are still going through tough times. Government support is in many cases essential for survival. It is therefore unclear how solid the fundamentals are under the current oil price and whether a small correction will occur in the somewhat longer term.
Jurphaas Lugtenburg
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