Fuels for electricity production
Aside from fuels for motor vehicles, Curoil also produces fuels that are supplied to Aqualectra for the purpose of electricity production.
The products concerned are Gas Oil (HSD), Diesel (MDF) and Marine Fuel Oil (MFO).
Reduction of fuels used
The quantity of fuel necessary for the electricity production for both large scale and small scale applications, due to an increasing rise in sustainable generation of electricity, shows a declining trend. The demand for electricity is increasingly met in a sustainable manner through the move by private households and companies to small scale solar energy and large scale wind parks. This development ensures a limitation of the risks for the availability of electricity and fits well within the over-arching policy of fuels aimed at sustainability that is based on efficient use of fuels and cleaner fuels that comply better with the usual international standards.
Prices
Not all fuels for electricity production are regulated. Only Gas Oil, Marine Fuel Oil (MFO) and Diesel (MDF) are included as regulated fuels for electricity production.
The regulation of fuel costs for the production of electricity is aimed at affordability of the total electricity supply. Considering the effects of the price development of crude oil on the costs for refining fuel products and the fact that this price is difficult to influence, there is a growing need to take inventory of the possibilities to use fuels of which the prices can be better controlled and which are also relatively “cleaner”, such as natural gas for example.
Policy objectives
With a view to the over-arching policy objectives aimed at affordability, availability and sustainability of fuels, the policy regarding fuels for electricity production is aimed at:
- Stimulating fuel distribution against lower tariffs by switching to “cleaner” alternatives based on feasible infrastructural investments
- Stimulating fuel distribution that is geared more towards the sustainability of fuels
- Securing the availability of electricity and related fuels for electricity production by taking inventory into the possibilities for supply