Overview

In 2022, the Netherlands produced roughly the same amount of energy as in 2021 (118 billion kWh). Renewable energy production rose by 20 percent, and fossil fuel production decreased by 11 percent. Renewable sources accounted for 40 percent of the total electricity production, marking an increase from the previous year when it stood at 33 percent. The top five energy sources in the Netherlands were as follows: natural gas (40%), wind (18%), solar (15%), coal (14%), and biomass (7%). Additional energy sources included nuclear, petroleum products and hydropower. AnchorThe country has one nuclear power plant and two LNG terminals.  

Source: Statistics Netherlands (CBS)  

Leading Sub-Sectors

The primary focus of Dutch energy policy is carbon reduction through a so-called Energy Transition. The Netherlands was one of the first EU countries to announce plans to eliminate natural gas from its energy mix altogether. The need to transition away from natural gas has gained further urgency in the Netherlands after the invasion of Ukraine. The government committed to a 55 percent reduction in carbon emissions by 2030 compared to 1990. In April of 2023, the government announced plans to spend $31 billion in the coming years to guarantee that the goal is met. This would include higher carbon tax for industrial companies, and increased subsidies for second-hand electrical cars, insulation and solar for homes.

AnchorThe U.S. Department of Energy and the Ministry of Economic Affairs and Climate Policy in 2020 signed a statement of intent to collaborate on hydrogen technology. Through this effort, real-world data from hydrogen applications will be gathered to guide both organizations’ future hydrogen research and development and demonstration activities.

Opportunities

AnchorOne of the most important instruments to drive emissions reductions is the Stimulation of Sustainable Energy Production (SDE++) support scheme, which uses competitive auctions to award operational subsidies to renewable energy projects. From 2011 to 2020, SDE+ allocated EUR 60 billion of subsidies, which are paid out over a period of up to 15 years based on the amount of renewable energy generated. In 2020, SDE+ was expanded into the Sustainable Energy Transition Incentive Scheme (SDE++), which uses a similar auction process to award subsidies to a wider set of technologies based on avoided CO2 emissions, including carbon capture and storage (CCS) and low-carbon hydrogen. Additional information of the scheme can be found on the website of the Netherlands Enterprise.

Market  Analyses: PBL Energy and Climate Change Reports

Contact:                             

Alec Boydston, Commercial Specialist                                      

U.S. Commercial Service – The Netherlands

Alec.Boydston@trade.gov | +31 70 310 2420