Flemish government agreement on Energy and Climate 2024-2029

The Flemish governmental agreement has been published on 30/09, followed by the policy note on energy and climate 2024-2029 on 15/11. Both documents describe the framework for the new Flemish government and its Energy Minister Depraetere. We selected the most important information related to energy for the industry. As it are mostly guidelines, the concrete implementation of the different topics will become clear in the near future.

The Flemish governmental agreement included the following outlines on energy relevant for industry:

• A budget neutral tax shift to lower the electricity costs and support the energy transition in combination with, for non-residential consumers, a system of degressivity, like the current degressive systems
• PV-obligation will remain, and the target group might even be extended. There will be more flexibility in alternatives to comply to the obligation.
• Large extension of charging infrastructure (also fast charging)
• Large ambition for renewable energy towards 2,8 GW wind and 10 GW solar with grid reinforcement and storage capacity with special attention for alternative support mechanism for wind energy with e.g. contracts for difference, the abolishment of call ‘groene stroom’, flexibility to keep business case of PV positive, continue support for biogas and biomethane via tradeable GoO
• Exit policy with adjusted tariff model for the gas grid
• Possibility for contracts with multiple suppliers for customers to capitalize on interesting market prices

The Policy Note on Energy and Climate is an elaboration of the governmental agreement:

• The Flemish government will evaluate every 2 year if the Flemish GHG-emission reduction target can be increased from -40% to -47% by 2030 taking the capacity of the citizens and the competitiveness of the companies. For now, VEKA estimates that a reduction of only 33,7% will be reached by 2030.
• The Flemish government will not impose stricter standards, targets, or norms than the transposition of the European energy and climate regulation.
• Flemish revenues from ETS will be predominantly applied for the compensation of indirect emission costs. Instruments to stimulate the energy transition for the industry will be examined.
• Following the Energy Efficiency Directive, an energy management system (management system to draft and establish energy policy, targets and plans) will be compulsory for companies with an annual final energy consumption >85 TJ (23,61 GWh). In line with the EED, also the minimal consumption for obliged energy audit will be sharpened to all companies with an annual final energy consumption >10 TJ (2,78 GWh).
• Acceleration zones for wind energy, e.g. ports, large scale industrial areas, large scale line infrastructure, will be examined on feasibility and desirable. The profitability of new wind projects will be examined and possibly mitigated by a 2-sided contract for difference as new supporting mechanism.
• All suppliers have to offer dynamic price contracts.
• The Flemish government will investigate how to promote the use of power purchase agreements.
• The Flemish government ensures that the Flemish component in the electricity bill already does not increase further as a result of Flanders' own policy in this legislature, but decreases as a result of an energy tax shift. Hereby, initiatives on a federal level will be considered (e.g. tax on fuel oil and propane).

There are several more energy related topics in the governmental agreement and the policy note.

If interested, please contact us.