DUTCH ENERGY CZAR DISCUSSES NEW ENERGY STRATEGY

UNCLAS SECTION 01 OF 02 THE HAGUE 000365 SIPDIS SENSITIVE SIPDIS STATE FOR EEB/ESC/IEC (SGALLOGLY),EUR/WE (TSMITH) USDOC FOR 4212/USFCS/MAC/OWE/DCALVERT USDA FOR FAS/OGA/MDWYER, FAS/OCRA/RCURTIS E.O. 12958: N/A TAGS: ENRG PREL NL SUBJECT: DUTCH ENERGY CZAR DISCUSSES NEW ENERGY STRATEGY REF: 06 THE HAGUE 341 THE HAGUE 00000365 001.2 OF 002 SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY. ¶1. (SBU) SUMMARY: In a meeting with Dutch energy czar Mark Frequin, he spelled out the GONL's new energy policy "tracks" -- developing the Netherlands as a gas hub and securing energy partners both within Europe and beyond. He also emphasized three overarching Dutch goals on energy -- open markets; diverse and secure sources; and clean and new solutions. Frequin was enthusiastic about revisiting plans to host a U.S.-Netherlands energy conference and welcomed the CDA's suggestion of trying to bring USG energy officials to the Netherlands for substantive exchanges on energy. END SUMMARY. -------------- Dutch Energy Strategy -------------- ¶2. (SBU) During an April 11 meeting with CDA, AgCouns, and Econoff, Mark Frequin, Director General for Energy and Telecom, Ministry of Economic Affairs (MEA),said the GONL will release its new energy action plan -- "Energizing the Future" -- by June 2008. (Note: The GONL does not have a separate Energy Ministry, the portfolio falls within MEA. Frequin is the senior most GONL official dedicated to energy issues. End note.) This strategy will elaborate on the following three "tracks" that constitute Dutch energy policy: -- Work within the EU to establish a common EU policy on deregulation, emissions, Russia, and other energy issues; -- Strengthen bilateral policies with energy partners both inside and outside of Europe to ensure diverse supply sources; and -- Pursue a northwest European geographic strategy, which includes participation in the Nordstream pipeline. ¶3. (SBU) Frequin also spelled out the GONL's overarching goals on energy: open markets; diverse and secure sources; and clean and new solutions. Addressing the first and second goals, he said the Dutch are developing the Netherlands as a gas hub -- or "roundabout" -- that gathers natural gas from various sources (including the North Sea, Algerian LNG, Russia) and then distributes it via pipeline to continental Europe (e.g., France, Italy, Switzerland). Frequin added that new, clean energy solutions such as biomass require subsidies to get off the ground, but eventually need to compete in the market without support. -------------- Renewable/Alternative Energy -------------- ¶4. (SBU) As Dutch off-shore gas resources deplete, Frequin said, the Netherlands will make new use of the sea through wind parks, geothermal, solar, and biomass solutions. He responded positively when AgCouns expressed USG interest in establishing joint research and expert exchanges with the Netherlands on biofuels. Frequin suggested working through his Director for Energy Transition, Hugo Brouwer, who coordinates the GONL's interagency process in this field. -------------- Possible U.S.-Netherlands Energy Conference -------------- ¶5. (SBU) Dutch Minister for Economic Affairs Maria van der Hoeven wants to build a relationship with the U.S. around energy, according to Frequin. To that end, Frequin was enthusiastic about reinvigorating plans for a U.S.-Netherlands energy conference (see reftel). Frequin suggested that the two sides for starters get together to talk about common energy interests after the GONL releases its new strategy. He cautioned, however, that a "hidden agenda" of criticizing the Dutch for cultivating an energy relationship with Russia would be a non-starter. Frequin added that Dutch officials are keen to visit the U.S. and see THE HAGUE 00000365 002.2 OF 002 American energy ideas in practice. Gallagher