Corporations and local authorities in the Netherlands making the transition to green energy will have to pay more in the future due to the rising price of highly desirable Dutch renewable energy certificates, the Financieele Dagblad reported.

The price for these green certificates has been rising steadily as Europe goes green and the price of Dutch green certificates is now among the highest in Europe.

Renewable energy certificates validate the technology source and location of energy produced, and are available all across Europe for purchase and sale, according to Norwegian energy broker Cleanworld.

A large number of companies and authorities, including Schiphol, Dutch Rail NS, Amsterdam, The Hague and many other communities have made the switch in recent years. All are targeting 100% renewable-sourced energy. Thus existing fossil fuel contracts are being exchanged for green energy contracts.

As a result the parties involved must buy renewable energy certificates to demonstrate that every kilowatt hour consumed is generated sustainably by wind farms or solar energy for example.

Dutch companies and energy suppliers  have been buying green certificates from Norwegian hydroelectric plants or geothermal centres in Iceland. But critics label these ‘doctored certificates’ because they do not contribute to the ‘greening’ of Dutch energy production.

In the meantime, energy suppliers are snapping up green certificates elsewhere in Europe. Prices are rising.

Trading

‘In October 2016 a certificate cost €0.30 per kilowatt hour.  Now they are traded for more than €1.85 per kilowatt hour,’ said Cleanworld’s Martyn Meelhuijsen. ‘Prices and volumes have been rising sharply for the past 18 months,’ he said.

Dutch certificates for wind-generated energy have risen to more than €5 per kilowatt hour, the FD said. The market for green certificates is non-transparent, but the paper talked to a number of parties involved.

Fifteen percent of total Dutch energy production is from renewable sources. But green energy powers some 45% of Dutch households. Much of this is accomplished by importing green certificates, the FD said.