The energy mix in the Netherlands consists of crude oil, natural gas, coal, renewable energy and other types of energy such as nuclear and energy from waste. The Netherlands has substantial natural gas reserves, but the government decided in 2018 to phase out the extraction of natural gas (mainly because of earthquake concerns). 

According to the most recent figures for 2023 (published in June 2024), the Netherlands had a 17% share of renewables in its energy mix.

Pursuant to the European Green Deal and the European Climate Law, each EU member state must use 100% renewable energy and thus become climate neutral by (ultimately) 2050. By 2030, the Netherlands aims for a CO₂ reduction of 36%, and a 27% share of renewable energy in its energy mix, but the latter may be raised to 32–42%. Furthermore, the Dutch government initiated the Climate Agreement in 2019. This national agreement aligns governments and commercial partners to speed up the transition to a sustainable society.

Because of (societal) issues with renewable energy on land, including “not in my backyard” (NIMBY) sentiments, offshore wind is the main focus of the Dutch government. The market is up and running, and offshore wind energy has proven to be relatively reliable in terms of supply. The Dutch government aims for 50 GW installed capacity in 2040 and 70 GW by 2050.

Green gas installations are emerging and the first (substantial) hydrogen projects have kicked off.

In terms of renewable energy technologies, the Netherlands is currently mostly relying on biomass (including biogas/green gas and bioLNG), wind and solar PV. The largest renewable sources in 2023 were: biomass 5,58% (106.002 TJ), wind energy 5,31% (96.147 TJ) and solar energy 4,04% (43.149 TJ) (source: Statistics Netherlands).

Hydrogen and geothermal heat are still relatively small sectors. Hydrogen only represents a share of 0,02% (304 TJ) in the energy mix, while geothermal heat covers 0,73% (13.176 TJ) of renewable energy usage. Although still small, these sectors are upcoming.

Between 2022 and 2023 (the most recent figures), the renewable energy share within the total energy usage mix increased from 15% to 17%.

The renewable energy market is challenged by congestion on national and regional electricity grids. The capacity of electricity grids has to be increased as soon as possible, but the current speed of grid expansion is insufficient. The Dutch national energy regulator ACM (Authority for Consumers and Market) has taken certain measures to regulate this congestion. For more detail, see 4.2 Intermittency, Grid Congestion and Flexibility. 

There is quite some uncertainty in the field of regulation for (collective) heat supply projects, caused by a long-pending legislative proposal for a new Heat Act (for more detail see 2.1 Governing Law and Upcoming Changes). This results in projects being paused or terminated.

Due to the international energy crisis (following the war in Ukraine), the government installed a price cap on gas, electricity and heat prices for consumers and small and medium companies in 2023. This price cap mechanism ended on 1 January 2024.

Preparations for two new nuclear plants have started. The Minister of Economic Affairs and Climate Change aims for start of operation in 2035. Parliament has also passed a motion to allow two additional nuclear plants.

The Dutch energy market is governed to a large extent by the Electricity Act 1998, the Gas Act and the Heat Act, combined with subordinate legislation, such as decrees, regulations and national network codes. In addition, the competences of the energy regulator ACM are governed by its Establishing Act and the General Administrative Law Act.

There is no general separate legal framework for renewable energy. Provisions for renewable energy are incorporated in both the Electricity Act 1998 and the Gas Act, as well as in the Heat Act. There is some specific legislation for special types of renewable energy, such as the Offshore Wind Energy Act (Wet windenergie op zee), together with subordinate legislation, and legislation on subsidies for renewable energy (the Renewable Energy Production Incentive Scheme). Furthermore, since 1 February 2022, implementing the EU Directive on Renewable Energy (REDII), the Structures (Living Environment) Decree (Besluit bouwwerken leefomgeving) includes requirements for a minimum renewable energy usage in major renovations of buildings, including a heating or cooling installation.

There are specific provisions for renewable energy in place focussing on sound certification of renewable energy products and protection against greenwashing. The Gas Act, the Electricity Act and the Heat Act include sections on “guarantees of origin” (GoOs), which certify the renewable origin of energy.

The legislation and regulation for hydrogen is still under construction. See 2.3 Regulated Activities.

Parliament has adopted an overarching new Energy Act, which will inter alia replace and update the current Electricity Act and Gas Act (not the Heat Act), aiming to facilitate the “energy system of the future”, including more local renewable energy production, storage and flexibility. The new Energy Act incorporates and unifies parts of the current legislation and includes new legislation on consumer protection, flexible use of the electricity grid and exchange of information between grid operators, energy suppliers and off-takers.

Government is aiming for a substantial boost of the geothermal heat sector through the implementation of a new Heat Act, called the Collective Heat Act. An ambitious legislative proposal was submitted to the House of Representative on 18 June 2024, which aims at increasing public control over (realisation and operation of) collective heat projects, developing collective heat with zero greenhouse gas emissions by 2050, tightening consumer protection and better guaranteeing security of supply of collective heat, as well as introducing transparent and cost-based tariff regulation for captive consumers of collective heat. Commercial heat companies have criticised the anticipated public ownership of collective heat projects and it is unsure when and in what form the legislative proposal will be adopted.

ACM

The ACM is the Dutch national regulating authority for the energy market and a member of the European Agency for the Cooperation of Energy Regulators (ACER). The ACM ensures fair competition between businesses, and protects consumer interests. This includes energy markets, and protection of consumers in those markets. The ACM is responsible for inter alia translating EU electricity and gas codes into national codes for the electricity and gas markets and for monitoring compliance with energy regulation. The ACM also determines the regulated tariffs for energy grid operators and heat supply companies.

The ACM has various powers and tools, following from its Establishing Act and Division 5.2 of the GALA. These include rights to information, whereby the ACM is able to request information from companies in the energy sector to monitor compliance, and a right to enter every place (except private homes) without the occupant’s permission. The ACM can also conduct inspections and audits of energy companies, issue binding decisions and instructions to enforce compliance with laws and regulations, and impose fines and penalties for non-compliance. Persons and companies are to co-operate fully with requests from the ACM. Finally, the ACM is the authority in charge of granting (and, if necessary, revoking) licences required for the supply of electricity, gas and heat to small consumers. The ACM is also the supervisory authority for monitoring unfair trade practices and wilful deception of consumers.

SSM

The State Supervision of Mines (SSM) is the independent regulator of mineral and energy extraction in the Netherlands. SSM oversees safety and environmental protection in mining activities, the gas grid and offshore wind energy. It performs its supervision from a technical perspective, taking social interests into account as well. Most of SSM’s tasks are laid down in the Mining Act and the Gas Act.

Minister

The primary policy maker for energy activities, more specifically renewable energy activities, is the Minister of Climate Policy and Green Growth. The Minister creates the legal and regulatory framework for the energy sector and is leading in terms of promoting new energy projects by – eg, managing subsidy and incentive schemes.

RVO

The Netherlands Enterprise Agency (RVO) is part of the Ministry. RVO was established in order to facilitate sustainable prosperity in the Netherlands, and therefore facilitate sustainable and innovate projects, including renewable energy projects. RVO administers subsidies and financial incentives for renewable energy projects, and monitors the progress and compliance of these subsidised projects. If necessary, RVO is equipped to reclaim subsidies in case of non-compliance with the relevant terms and conditions.

Renewable energy activities are regulated to ensure compliance with national and European laws and regulations, environmental standards, and market rules.

Wind Energy

Wind energy can be divided into offshore and onshore wind activities. The basic regulation of wind energy production and supply does not fundamentally differ from conventional electricity production (from fossil fuel).

Offshore wind has specific legislation: the Offshore Wind Energy Act (the “OWE Act”), which governs the planning, tendering and permitting of offshore wind farms. This act also contains the (legal) concept of the so-called wind farm site decision (kavelbesluit) in which the Minister (in co-ordination with the Minister of Infrastructure and Water Works) designates a plot for the development of an offshore wind farm (if it is part of the areas designated for offshore wind in the National Water Plan). A developing party also needs a permit in order to construct an offshore wind farm, to be obtained in a tender process (see 6.2 Offshore Project Development).

For onshore wind, the provincial governments, local governments (municipalities) and the RVO are the key authorities involved. Provincial governments and municipalities should co-ordinate their spatial planning in terms of onshore wind energy. Where needed, provincial and municipal zoning plans are (re)drafted in order to facilitate onshore wind farms. There are regulations on noise and shadow flickering, as well as on the proximity to residential areas.

Solar Photovoltaic (PV)

Key regulatory authorities are quite similar to onshore wind: provincial and municipal governments as well as the RVO. The Environmental Act (in force since 1 January 2024) states that, in principle, rooftop solar installations can be built without the need to request a permit.

Biogas, Green Gas

Several permits and registrations are required for building and operating a biogas installation. An environmental permit is key. In addition, an installation may require an accreditation from the Netherlands Food and Consumer Product Safety Authority, a Fertilisers Act registration and a registration on the list of transporters, collectors, dealers and brokers of waste substances.

Hydrogen

There is no specific regulation for the hydrogen sector yet. Legislation concerning hydrogen is currently being drafted on both an EU and national level. On a national level, the Minister is to formulate access and tariff conditions, followed by a consultation of standard contract terms and conditions to be applied by the grid operator. Within five years from 2025, the EU hydrogen rules are to be implemented in Dutch legislation. Ultimately, in 2031, the Dutch government aims to have a full hydrogen legal framework in place, including rules on balancing, capacity allocation and congestion management.

In the meantime, the (usual) spatial planning legislation applies to the construction of hydrogen plants and storage plants, as well as pipelines. Therefore, spatial and environmental permit procedures must be followed in order to be able to construct the required installations and buildings.

Geothermal Energy

The authorities involved in geothermal energy are the Minister and SSM. Geothermal energy is governed by the Mining Act and underlying regulation, regulating the exploration and extraction of geothermal heat resources.

A geothermal project requires a “start-up permit” before exploration activities begin. According to Section 24t of the Mining Act, this permit shall be rejected in whole or in part if:

• the exploration or extraction of geothermal heat in the geological strata indicated in the application and their delimitation is not permitted by or pursuant to law;
• an allocation search area for geothermal heat has been granted to someone other than the applicant for the ground layers and their boundaries indicated in the application, or an initial permit for geothermal heat or a follow-up permit for geothermal heat has been granted;
• the exploration and extraction described in the application will entail unacceptable risks for the safety of local residents or may cause unacceptable damage to buildings or infrastructural works or their functionality; and/or
• if the ground layers specified in the application are located wholly or partially under an area designated for the extraction of drinking water from groundwater. No financial security can be provided to cover liability for damage due to contamination of groundwater or soil in connection with the exploration and extraction.

Subsequently, a “follow-up permit” is needed for the extraction of the geothermal heat. According to Section 24aj of the Mining Act, this permit shall be rejected in whole or in part if there are (material or financial) risks as laid out in the paragraph before under points c and d. The decommissioning is regulated (see 6.5 Decommissioning Requirements). In addition, an environmental permit may be required for geothermal activities.

Conclusion

The regulatory framework for renewable energy in the Netherlands is comprehensive and varies across different types of renewable energy. Each type of renewable energy activity is subject to specific rules and restrictions aimed at ensuring environmental protection, safety, and compliance with national and European policies. The regulatory authorities, including the Minister, the ACM, SSM and RVO, play a critical role in enforcing these regulations to facilitate a sustainable energy transition.

There are no general restrictions on ownership and transfer of (renewable) energy assets in the Netherlands, except for a privatisation ban regarding the transmission system operators and distribution system operators and their assets. Other renewable energy assets are generally open to both domestic and international private ownership. The strategic importance of certain assets may add scrutiny and restrictions on ownership and transfer: ownership transfer of offshore wind assets requires governmental approval, which is also required for the transfer of geothermal energy assets.

Section 86f of the Electricity Act and Section 66e of the Gas Act contain a notification requirement. Any change of control in respect of an electricity production facility with a nominal capacity in excess of 250 MW or in respect of an LNG installation or company must be reported to the relevant Minister by one of the parties involved in such transaction. On grounds of public safety, security of supply or security of delivery, the Minister may attach certain conditions to the transaction or prohibit the change of control altogether (“control” being defined as “the possibility of exercising decisive influence over a company’s activities on the basis of factual or legal circumstances”).

On 1 June 2023, the Investment, Mergers and Acquisitions Screening Act (Wet Veiligheidstoets investeringen, fusies en overnames) entered into force. This Act introduced a general FDI screening mechanism. Transactions involving targets operating, managing or providing a service which can be deemed of vital importance to the Dutch society may need approval from the Minister.

Furthermore, the above-mentioned proposed new Heat Act aims to introduce public ownership. An appointed heat company (warmtebedrijf) or heat community (warmtegemeenschap) will have exclusivity within a so-called heat plot (warmtekavel) and at least 50% of the shares in such heat company/community must be held, directly or indirectly, by (local) government.

Energie Beheer Nederland (EBN) invests in energy projects on behalf of the Dutch state. In the past, EBN’s focus was on oil and gas projects. Now, its activities focus on the gas transition, the heat transition and CO₂ storage and transport systems. As from 1 July 2023, EBN is a mandatory participant in new geothermal heat projects. This entails that EBN participates financially and with a risk-bearing stance in these projects as non-executive partner. EBN’s stake is between 20% and 40% and EBN’s participation commences as soon as a permit holder is granted an exploration area. This mandatory EBN participation will be evaluated in 2028.

Some permits may be person-related, such as nuclear energy permits and Mining Act permits. This may have an impact on ownership or transfer of control. Some permits and subsidy decisions may stipulate that transfer is not allowed (without prior consent), or is not allowed within a specified timeframe.

In addition to what is stated in 2.4 Ownership and Transfer of Control, investments in the Dutch energy market have always been open to both national and foreign investments. Foreign investors have a relatively substantial presence in the Dutch energy market. The foreign share in the Dutch gas market is quite large and major international players, including Vattenfall (owned by the Swedish state), Eneco (owned by Japanese shareholders) and German energy company E.ON, are active in the Dutch energy sector, both in production and supply.

The main sources of renewable in energy in the Netherlands are wind and solar energy. In 2024, electricity production from renewable sources increased to 32.3 billion kWh in the first half of the year. As a result, the share of renewable electricity is 53% of the total electricity production. This is the first time that more electricity was produced from renewable than from fossil sources.

There are currently seven active offshore wind farms. Additional offshore projects are to be constructed in the coming years, following the roadmap as set by the Minister of Climate Policy and Green Growth. The current wind farms are owned and/or built by international parties such as Shell, Eneco, Mitshubishi Corporation, Ørsted.

According to most recent numbers (September 2023), 19.2% of onshore wind farms is owned by purely local partnerships (local community initiatives with their local partners) and the majority by non-local parties, such as Eneco, Pure Energie and Innogy.

Solar energy is the second-most important renewable source in the energy mix. A total of 541 solar parks have been constructed in the Netherlands, including nine offshore projects. 79.4% of the projects are owned by non-local partnerships/companies. A key player in the solar market is the company Sunrock, of the well-known Brenninkmeijer family. Some other major players are GroenLeven, Blue Elephant Energy, Solarfields, HVC and Powerfield. The only traditional energy firm in the top ten of solar park owners is Eneco.

In addition to professional large-scale solar projects, there is a substantial number of small-scale rooftop solar PV panel systems. Rooftop solar energy has been quite heavily subsidised in recent years and, consequently, a substantial number of households have had solar panels installed on their rooftops. However, subsidy schemes are now to be reduced. In 2023, regional grid operators reported that 2.6 million (residential) properties were fitted with rooftop solar panels.

Gas from renewable sources is not very common (yet) in the Dutch gas market. Biogas makes up only 0.45% of the total energy mix. In 2023, green gas production rose to 280 million m3, produced by a total of 83 green gas installations.

In May 2024, only five energy suppliers supplied green gas. The Climate Agreement aims for two billion m3 of green gas in 2030, both in the existing gas system, and for automotive use (fuels).

Geothermal heat has been produced in the Netherlands since 2007, but geothermal is still a relatively small sector within the Dutch energy landscape. It covers 0,73% (13.176 TJ) of renewable energy usage.

Geothermal heat is governed by the Mining Act and the regulating authority is the Ministry of Economic Affairs. The State Supervision of Mines (SSM) is the supervising authority.

There are currently 12 geothermal projects in the Netherlands. The government aims to increase geothermal heat production to 15 petajoules (PJ) by 2030 (the equivalent of the average electricity and gas consumption of 2.2 million households). To achieve this goal, a Geothermal Heat Action Plan was published in 2022.

A permit is required for geothermal heat exploration and production at depths of 500 metres or more. As of 1 July 2023, there is a separate regime applicable to geothermal permits, taking into account practical and safety aspects.

Hydrogen has a modest share of 0.02% (304 TJ) in the current Dutch energy mix. However, the sector is growing. The Netherlands aims for a national network of 50 hydrogen filling stations and electrolyser capacity of 8 GW by 2032, including sufficient storage locations and infrastructure. To achieve these goals, various subsidy schemes are in place.

In May 2024, seven Dutch hydrogen projects were granted approximately EUR250 million in subsidies, with the aim to realise 101 MW of electrolyser capacity. A new subsidy round opens in Q3 2024.

An onshore hydrogen network is being developed by Hynetwork (see 3.4 Hydrogen and Other Biofuels and Renewables).

Specific rules and regulations for hydrogen do not yet exist, but safety guidelines do apply. A first version of safety guidelines for hydrogen carriers was adopted in May 2024. This guideline addresses both existing activities (such as ammonia storage and transhipment) and new activities, such as storage and transhipment of liquid hydrogen and liquid organic hydrogen carriers, as well as converting hydrogen carriers.

As indicated in 3.1 Electricity, small-scale generation of renewable energy by way of rooftop solar PV for domestic use is very common in the Netherlands. This is a relatively mature market, which has been pushed by a governmental renewable energy netting scheme – that is expected to be phased out in the coming years. Generally, no permit is required for small-scale rooftop solar PV.

In addition to solar energy for private use, more and more heat pumps are installed in households nationwide. In May 2022, the government announced the introduction of a hybrid heat pump obligation from 2026 onwards, but this plan was abandoned after recent elections.

In principle, no permit is required for the installation of a heat pump on a rooftop or outside a home, but local exceptions apply. Since 2021, regulation has been in place regarding noise emission standards. Noise produced by a heat pump should be limited to 40 dB. Subsidies can be applied for when installing a heat pump.

Transportation and storage of electricity from renewable sources is similar to that for non-renewable electricity. The national transmission system operator TenneT operates the national high-voltage power grid in the Netherlands, ensuring the delivery of electricity to regional grid operators and connected parties. Distribution system operators operate the regional grids. The system operators are supervised and regulated by the ACM.

TenneT expects 4 GW of battery storage capacity in its system by 2030. In August 2024, TenneT and Giga Storage announced a 300 MW battery storage in Delfzijl, that has access to TenneT’s system through a flexible transmission contract. RWE announced a 35 MW battery storage in Eemshaven, to become operational in early 2025.

General rules on electricity transportation and storage are incorporated in the Electricity Act 1998, which will be replaced by the new Energy Act. Chapter 5 of the Electricity Act is dedicated to electricity supply from renewable sources. Section 68.1 of this Act states that electricity suppliers (and producers) have the task of promoting the efficient and environmentally sound use of electricity by themselves and customers.

In the new Energy Act, the government focuses on replacing existing fossil sources for renewable sources of electricity and developing a carbon-free electricity system. The new Energy Act also contains clauses on energy storage.

Grid congestion is a hot topic in the electricity sector. The ACM draws up energy codes that include rules on grid congestion. Chapter 9 of the Net Code Electricity contains terms and conditions for congestion management, including responsibilities for both network operators as well as anyone having a connection to the electricity grid.

Solar PV causes more congestion than wind power. The Minister has put a “National Grid Congestion Action Programme” in place, trying to accelerate the expansion of the grid, focussing on better use of the grid, as well as expanding flexible capacity. Since net congestion is a quite common problem in the Netherlands, and there are – in terms of construction materials, but also zoning regulation – hiccups to actually accelerate grid expansion, market players regularly have to resort to curtailment actions.

In April 2024, the ACM issued eight decisions on measures against grid congestion to be taken by grid operators and off-takers. Sometimes a distinction is made between the national high-voltage grid and regional distribution grids. For instance, it is possible that parties conclude a joint connection and transmission agreement with a system operator, in order to arrange between themselves a smaller and better capacity of the grid. Large off-takers on the national high-voltage grid can gain financial benefits by shifting (part of) their consumption out of peak hours. In addition, it will be possible for large off-takers on the high-voltage grid to receive a discount if they are willing to use less or no electricity at peak times in the grid (up to 15% of the time). The same applies to business off-takers on the distribution grids, though they need to agree on usage time periods in advance with the system operator. These measures help to free up capacity during peak hours and make better use of capacity that already exists outside peak hours. Furthermore, the ACM offers companies more clarity on connection deadlines that the grid operators must apply and the rules on having to return contracted but unused transportation capacity are being tightened (“use it or lose it”).

In terms of off-grid solutions for transportation and supply of renewable energy for end users (consumers), there is the possibility to “go off grid” and privately generate energy with solar PV panels and heat pumps. Companies may also decide to join a closed distribution system or a direct connection. An example of a large closed distribution system is Smart Grid Flevoland, a system in which solar, wind and storage is combined.

Transportation and storage of gas from renewable sources is similar to transportation and storage of non-renewable gas. Gasunie Transport Services B.V. (GTS) is the owner and operator of the national gas transmission system (similar to TenneT for the electricity system). In addition, distribution system operators operate the regional grids. The system operators are supervised and regulated by the ACM.

Gas regulation is fairly similar to electricity regulation in the Netherlands. The Gas Act contains the most important general rules concerning gas transportation and storage. The new Energy Act will replace the Gas Act. The definition of “gas” in the Gas Act is twofold, namely natural gas as well as gas from renewable sources (Section 1.1.b). In the Gas Act, although very similar to the Electricity Act in most parts, there is no specific chapter dedicated to gas from renewable sources.

Compared to renewable electricity, there is less focus on renewable gas in the new Energy Act. Nevertheless, producers of renewable gas that apply for grid connection and transportation are granted certain advantages compared to producers of natural gas (see Sections 3.40 and 3.47). The Energy Act also contains rules regulating the intake and seizure of GoOs regarding gas from renewable sources (see also paragraph 2.6.1).

A proposal to supplement the Environmental Management Act with a green gas admixture obligation has been in the legislative loop since 2023. The anticipated obligation should increase annually (to 20% green gas in 2030). Since the recent change in government, the status of this legislative proposal is unsure, also taking into account the detailed opinion of the European Commission dated 12 August 2024, following the notification of the legislative proposal.

The heat supply systems in the Netherlands are local and mostly small scale – eg, per district, city, region or building. There is no national heat grid (transportation system), like there is for gas and electricity. A regional system in the province of South Holland is being developed by WarmtelinQ, part of the Gasunie group. This regional system is a main underground pipeline that allows residual heat from the Port of Rotterdam to be used to heat homes and businesses in the province of South Holland.

One of the goals of the Climate Agreement is that 1.5 million households will stop using gas by 2030. 50% of these households should then be heated via a heat network.

The degree of renewable energy used in heat supply systems differs per system. Which source or sources are used depends on local availability of heat sources. Over time, the source used for a system may change. Existing systems mostly use heat from power plants and waste incinerators. Renewable sources, such as bio energy and geothermal heat, are used more and more to replace fossil sources. Heat systems may be combined with cold systems. This is especially interesting when it is possible to combine the installation of both systems.

The ACM sets maximum tariffs for the supply of heat to households and small businesses (with heat connections up to 100 kW). A licence to supply heat is required in case of supply to more than ten users and 10,000 GJ per year. Some major heat suppliers are Eneco, Engie, Essent, HVC and Vattenfall.

Rules for heat production and supply are about to change with the proposed new Heat Act (see paragraph 2.1).

An onshore hydrogen network is being developed by Hynetwork. The hydrogen network aims at connecting industrial clusters to each other, to other countries and to hydrogen storage and import locations. The hydrogen network will repurpose existing natural gas pipelines (85%) and will include new pipelines (15%) as well. Hydrogen storage is planned in caverns, similar to gas storage. Gasunie is also preparing for an offshore hydrogen network.

There is no specific regulation for hydrogen yet. By 2031 (at the latest), there should be a full legal framework within the Dutch jurisdiction, based on new EU regulation on hydrogen. In November 2022, the Minister published a Roadmap Hydrogen (Routekaart Waterstof), confirming the Dutch government’s approach to provide certainty on (in particular) hydrogen infrastructure, regulation and certification by 2025. It is unsure if this deadline will be met, but the government recently reconfirmed its commitment to (green) hydrogen.

Renewable electricity trade and supply to end users constitutes a fair share of the electricity market. Energy companies such as GreenChoice, Eneco and Vattenfall have a significant market position in the renewable electricity supply sector, and smaller suppliers include Energie VanOns, Om, Powerpeers, Pure Energie and Vrijopnaam.

The EU has set rules on consumer protection concerning electricity trade and supply that also apply to renewable electricity. This has been implemented in the Dutch legislation. Key obligations in terms of electricity supply is the requirement that suppliers obtain a permit from the ACM to be able to supply. Being granted a permit means a supplier needs to supply electricity in a reliable way as well as against reasonable tariffs, and compliance is monitored by the ACM.

An explicit obligation for suppliers of renewable electricity is being able to prove the renewable source of their electricity. The ACM is in charge of the verification of the accuracy of sustainability claims by market parties.

The market for gas from renewable sources is still small in the Netherlands. Some suppliers offer supply contracts for green gas, but most consumers choose a gas product combined with a form of CO₂ compensation.

A supplier of renewable gas is obliged to prove the renewable origin of its product. The ACM is in charge of the verification of the accuracy of sustainability claims.

Consumers with a connection to a heat supply system cannot freely choose their supplier, as there is only one supplier per heat supply system. The ACM sets maximum tariffs for the supply of heat to these captive consumers.

There is no substantial hydrogen trade and supply market yet. However, the hydrogen sector is growing and several projects are in the early stages of development.

The Dutch market for renewable energy certificates – ie, guarantees of origin (GoOs), is mature, but there is an imbalance between supply and demand. The substantial demand for GoOs is pushing GoO prices, as supply is lagging behind.

The government appointed VertiCer as the party responsible for the issue and registration of GoOs. VertiCer is 50% owned by the Gasunie group and 50% by the TenneT group.

Long-term (corporate) PPAs are becoming increasingly popular in the Dutch renewable energy market. In 2023, 11 PPA deals were made public, which made the Netherlands the single new entry in the European top ten of PPA deals.

Wind

In 2023, 11 new wind-on-land projects were realised with a total capacity of 771 MW. The largest of these wind farms were those at Maasvlakte Rotterdam and in the province of Flevoland (Windplan Groen and Windplan Blauw).

The production of onshore wind energy totals 20.7 TWh in 2024, with 1,292 MW of additional capacity in the pipeline. Several projects are well underway; irrevocable subsidy decisions have been granted to projects with a total of 370 MW capacity, of which 311 MW also have an irrevocable permit. Expectations are that in the coming two years, the production of wind energy will grow to 22.2 TWh in total.

Solar

In 2023, the market reached a record number of solar PV on household rooftops – 17% more than in 2022. It is expected that 1.7 GW peak will have been installed in 2024 (over 3.5 solar panels per inhabitant and 1,900 solar panels per square kilometre, according to the National Solar Trend Report 2024), making the Netherlands global leader in installed solar panel capacity per capita.

As discussed in 4.2 Intermittency, Grid Congestion and Flexibility, grid congestion is an important problem in renewable energy project development. The netting scheme (salderingsregeling) for solar PV is also a much debated topic. It is envisaged that the netting scheme for households (which provides for a set-off of electricity produced and electricity consumed) will be phased out from 2027 onwards. This is expected to have a significant impact on the solar PV market.

Biogas

The former government announced the ambition to produce two billion cubic metres of green gas by 2030. The new government did not explicitly confirm this green gas ambition, but the Green Gas Programme (Programma Groen Gas) has not yet been withdrawn.

Heat

The legislative proposal for the new Heat Act (introducing public ownership) caused quite some commotion. Energy companies like Eneco and Vattenfall are cancelling new heat projects, because of insecurity around the transitory law (inter alia on the expropriation of current private heat companies). Media reported in May 2024 that 90% of planned collective heat projects were suspended.

Furthermore, the market for (private) heat pumps has collapsed since Q4 2023. In the first semester of 2024, the number of heat pump sales halved.

Hydrogen

The large-scale development of new European and international (sustainable) hydrogen infrastructure is still in the early stages of development. According to some, this market might grow to become a similar form and magnitude to the current oil and gas markets.

Key Parties Involved

Key parties involved in the Dutch onshore renewable projects are:

• municipalities and provinces, which are leading in the zoning regulation as well as spatial planning in general, and the government is also in charge of granting subsidies;
• TenneT, GTS and distribution system operators; and
• parties that develop, construct and operate the renewable energy project, as well as investors. Such developers could be local parties, such as farmers (individually or working together), and energy companies. Investors can either be national or international.

Community Participation

The Climate Agreement introduced the aim for 50% local ownership of large-scale renewable energy projects. Such local ownership and financial participation in energy projects is mostly seen in wind and solar projects. The government monitors this participation. The most recent report was published at the end of 2023 (monitor financiële participatie hernieuwbaar op land) and shows that – in absolute terms – the financial participation and ownership in onshore renewable energy is increasing (both wind and solar) especially in projects under 50 MW. The numbers are a snapshot, because of the large dependency on completion of (large) projects with or without local ownership in the researched year. The Minister expects that the effects of the Climate Agreement (pushing local ownership and financial participation) will be seen in the monitor for solar from 2024 onwards and for wind from 2026/2027 onwards.

The Dutch main focus for offshore renewable projects is on offshore wind. Offshore wind currently comprises 16% of the total electricity market (4.5 GW in 2023). The government aims for 21 GW in 2032 and is reserving certain areas for the development of offshore wind farms. These areas are divided into plots, as included in the Offshore Wind Energy Roadmap. Projects Borssele (I-V), Hollandse Kust Zuid (I-IV), Hollandse Kust Noord, Hollandse Kust West and IJmuiden Ver (Alpha and Beta) have already been tendered. Plots IJmuiden Ver (Gamma) and Nederwike (I) are scheduled for 2025, Nederwiek (II-III) for 2026, and Ten noorden van de Waddenweilanden and Doordewind in 2027. Additional wind farm zones are expected to be announced in Q3 2025.

Developers of offshore wind projects can participate in the tenders. The winning bidder is granted the permit for the construction and operation of the relevant wind farm plot. The tender criteria may vary per project, but financial aspects will always play a role. For instance, in earlier tenders, the main focus was on the (lowest) subsidy amount required by the developer.

In June 2024, wind farm developers (Noordzeker, a consortium of ABP, APG and SSE Renewables, and Zeevonk II, a joint venture of Vattenfall and Copenhagen Infrastructure Partners) won a tender for two wind plots in the North Sea, where they will build the largest wind farms in the Netherlands so far. In the tenders, the focus was on protecting and strengthening nature in the North Sea (wind farm IJmuiden Ver Alpha) and on how to better integrate the electricity generated into the Dutch energy system (wind farm IJmuiden Ver Beta). The latter has resulted in the anticipated construction of a 1 GW electrolyser in the port of Rotterdam (to convert electricity generated from the wind farm into green hydrogen) and the largest offshore solar park (50 MWp).

The winning bidder is obliged to contract with TenneT for its connection to the offshore electricity grid. The relevant standard agreements, with specifics for each wind farm, are published during the tender process.

Key parties involved in the offshore renewable (wind) energy sector are:

• the government, tendering the plots and granting the construction permits (as well as granting subsidies, where applicable);
• TenneT, being the offshore electricity system operator, taking care of the realisation and operation of the offshore grid; and
• wind farm developers that develop, construct and operate the wind farms. The Dutch government publishes the names of the developers that have won tendered offshore wind projects (including such parties as Eneco, Vattenfall, Van Oord and several (foreign) parties).

In addition to standard considerations for project-financed assets, relevant topics to take into account in project financing for renewable energy projects in the Netherlands include the following.

• Grid connection – most renewable energy projects require a connection to the grid. Such connections can only be realised by the grid operator. There are long waiting periods (eg, 52 weeks) when applying for a grid connection, especially on the electricity grid. This may have an impact on the start date of the project.
• Transportation capacity – most renewable energy projects require transportation capacity. There is congestion in many parts of the electricity grids, both in terms of transmission and the distribution. This may result in a project having a grid connection, but no transportation capacity, which makes the connection useless. Project developers can wait until capacity becomes available or look for alternative solutions, such as using a joint connection with other parties, request temporarily capacity, facilitate a direct connection with an installation requiring electricity, or connect to a closed distribution system.
• Permits – most renewable energy projects require permits, and some may require amendments to the zoning plan. It takes time to prepare permit applications and for the competent authority to take decisions. Also, objection and appeal proceedings need to be taken into account, both because of a potential delay, and because of potential changes to the project or the possibility that no irrevocable permits will be obtained.
• Subsidies – if a renewable energy project requires subsidies, timing of an irrevocable subsidy decision needs to be factored in, as well as the possibility that a subsidy will not be granted, or not be granted in full. When applying for various subsidies or tax schemes, it must be ensured that a project does not receive too much government incentive (state aid risk).
• Delivery times of materials – some materials, such as rotor blades, may have a long delivery time.
• Qualified personnel – some companies may not have sufficient qualified personnel, which may result in delays in construction.
• Community participation – mandatory or voluntarily community participation may take place in various forms, and could include financial participation of the local community.

The Netherlands has several subsidies and tax benefits in place to incentivise renewable energy projects. There is a tax deduction scheme known as the energy investment allowance. This scheme offers direct financial benefits to entrepreneurs investing in energy-saving assets and renewable energy. In addition to depreciation, investors in renewable energy may deduct an additional amount of these investments from their profits. One of the requirements is that the investment should be at least EUR2,500. In case of investments in environmentally friendly technology, the Environmental Investment Deduction (MIA) and Arbitrary Depreciation of Environmental Investment (Vamil) schemes may apply. MIA allows the deduction of up to 45% of the investment costs for an environmentally friendly investment on top of regular investment tax deductions. Vamil allows the decision to be made around when to write off 75% of the investment costs, giving an advantage in liquidity and interest.

Furthermore, RVO is responsible for the granting of renewable energy subsidies. The three main schemes are:

• the Renewable Energy Production and Climate Transition Incentive Scheme (SDE++) for large energy projects, including geothermal heat and solar parks, and techniques that reduce CO₂, such as capture and storage of CO₂;
• the subsidy renewable energy (HER) for smart technology, such as combination of the generation and storage of energy, or techniques that contribute to smart grids; and
• the investment subsidy renewable energy (ISDE) for smaller projects such as heat pumps and solar water heaters, focused on both the commercial and private sectors.

In addition, municipalities and provinces have local and regional subsidy schemes, generally aimed at households or small businesses. Projects may also apply for specific subsidies from RVO and the European Commission.

The cessation of activities, decommissioning, and disposal of renewable energy installations in the Netherlands are governed by a comprehensive regulatory framework aimed at ensuring environmental protection, safety, and site restoration.

Wind Energy

Offshore wind projects are required to submit a decommissioning plan as part of the initial permitting or tender procedure, to be updated during the lifespan of the project. This plan must outline the steps and measures for the safe dismantling and removal of wind turbines, foundations, and associated infrastructure. Project developers must provide financial security (such as a decommissioning bond) to cover the costs of decommissioning. This ensures that funds are available to carry out the decommissioning process. Lastly, the relevant decommissioning activities have to comply with environmental regulations to minimise impact on (marine) ecosystems. This includes safe removal of underwater structures and proper handling of hazardous materials.

For onshore wind projects, the regulatory authorities, municipalities and provincial governments typically require a decommissioning plan as part of the permitting process. These plans must detail the methods for dismantling and site restoration. A permit is usually granted for 20 years (with potential renewals) and includes a “dismantling obligation”. This obligation entails the responsibility for the project developers to restore the site to its original condition or to a condition agreed upon with the relevant authority (municipality or provincial government). These dismantling/decommissioning activities have to be in line with safety and environmental regulations.

Solar PV

Similar to permits for onshore wind farms, permits for the construction and operation of solar projects usually contain a dismantling obligation after 20 to 25 years. There are programmes and facilities established for recycling solar panels, complying with directive EU/2012/19.

Hydrogen

There is no specific regulation regarding the decommissioning of hydrogen projects yet, but it is expected that this will be included in upcoming hydrogen legislation. For existing and upcoming projects, it is expected that any decommissioning requirements will be included in permits and/or zoning plans.

Geothermal Heat

Decommissioning of a geothermal energy project is governed by the Mining Act. When a geothermal energy project has been terminated, the project owner is responsible for the dismantling and removal of the installation. The operator should also restore the above-ground site to its original state.

Significant future and/or expected developments and points of attention are as follows.

• New Energy Act – adopted by Parliament in June 2024, followed by a vote in the Senate.
• New Heat Act – the outcome of the legislative process, following the proposal sent to parliament in June 2024, is still unclear. This may either result in a boost in the heat supply sector, or in a (temporary) standstill.
• Hydrogen – specific legislation and regulation to be developed. The relatively young hydrogen sector is expected to grow substantially in the next years.
• Offshore – more offshore renewable energy projects are in the pipeline. These projects may combine various sources of renewable energy (wind, solar), storage (hydrogen) and/or connections to other projects and offshore hubs.
• Onshore – renewable energy producers and off-takers are expected to co-operate more and more, to achieve efficiency benefits and to avoid negative consequences of grid congestion.
• Storage – more battery and hydrogen storage facilities are expected, both to balance the grid (avoid and mitigate congestion) and work towards a steady, reliable energy supply.