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An agreement has finally been reached on the rates of pay for wind power in the Netherlands. The association of wind turbine owners, Pawex, and EnergieNed, representing the utilities, have agreed NLG 0.163/kWh, lower than expected by many in the wind business. But Ernst van Zuylen from Pawex believes his members will accept the offer, though reluctantly. The agreed rate consists of a standard tariff for third party electricity suppliers of NLG 0.08/kWh, an environment subsidy of NLG 0.054/kWh, and a further NLG 0.03/kWh based on a proposal for energy tax exemption. The agreed rate makes wind power feasible in the windy provinces of Friesland and Flevoland, but on less windy sites developers will have to be sharp negotiators and economists. Electricity distribution companies could decide to take on some of the cost of grid connection and if investments were written off at speed, a tax advantage could be gained. With this kind elasticity, wind power might just be financially viable, says Pawex.

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