The Netherlands

The Netherlands plays an important role in Europe as a hub for global energy trade, through its open market and integrated supply chains. However, the outlook for Europe’s second-largest producer of natural gas is challenging amid declining production and uncertain prospects for unconventional gas.

The Netherlands

Key energy statistics

Key recommendations, 2020

  • Monitor security of supply issues resulting from the closure of Groningen

    Monitor potential security of supply issues resulting from the mid-2022 closure of the Groningen gas field and growing dependence on natural gas imports, with a focus on reducing demand, decarbonising the gas supply and repurposing gas infrastructure.

  • Ensure policy supports strong deployment of digitalisation

    Ensure that energy policy supports strong deployment of digitalisation in all sectors and develop clear regulations on energy sector data, supporting transparency and easy access, while also addressing issues of privacy and cybersecurity.

  • Align GHG emission reduction measures with achieving EU targets for RES and energy efficiency

    Ensure that the 2019 Climate Agreement GHG emissions reduction measures support cost-effective achievement of EU requirements, including targets for renewable energy and energy efficiency.

  • Support emerging technologies with potential for cost-effective emission reductions

    Support early-stage deployment of emerging technologies that have the potential for cost-effective emissions reductions, to stimulate mobilisation of private funds and bridge the gap from demonstration to large-scale commercial deployment.

  • Ensure electricity markets support innovation and integration of variable renewable generation

    Revise the regulatory framework for electricity markets to provide room for innovation and facilitate proactive development of an electricity system that can safely integrate increasing shares of variable renewable generation and support smart grid solutions.

  • Facilitate investments in low-carbon hydrogen development

    Drive commercial scale low-carbon hydrogen development in the near term by facilitating investment decisions and creating an adequate support scheme for scaling up electrolysis, carbon capture utilisation and storage, and supporting infrastructure.