The development of industrial CHP in the Netherlands

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Abstract

The development of industrial combined heat and power (CHP) in the Netherlands in the period 1968-1988 is studied in order to explore the factors that influenced this development, and particularly the effect of government measures designed to stimulate CHP. Between 1968 and 1988 1200 MW of CHP capacity was installed, mainly on the basis of gas turbines. Up to 1978 there was hardly any government policy directed towards the stimulation of industrial CHP. From 1978 onwards a number of stimulating measures have been introduced. From an analysis of the effects of government incentives on payback times we can conclude that some of the measures, among them the investment grants, had a considerable effect on the profitability of CHP investment.