COMMISSION STAFF WORKING DOCUMENT Country Factsheet The Netherlands Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union
Date: 2015-11-18
Institutions: European Commission, Secretariat-General
Subjects: Netherlands, competitiveness, economic and social cohesion, electrical energy, energy policy, gas, innovation, reduction of gas emissions, regional cooperation, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 18.11.2015  SWD(2015) 241 final   COMMISSION STAFF WORKING DOCUMENT Country Factsheet The Netherlands Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union  {COM(2015) 572} {SWD(2015) 208 à 209} {SWD(2015) 217 à 240} {SWD(2015) 242 à 243}  
 
 
Towards an Energy Union  
         The Netherlands 

Macroeconomic relevance of energy 

IMPORTANCE OF THE ENERGY SECTOR 

The share of the energy sector in total value added is slightly higher than that for the EU27, while the 
share in total employment is much lower than that for the EU as a whole. Notably, the share of the 
sector in total value added has dramatically increased during the period 2005-2012. 

Source: EUROSTAT – National Accounts 

According  to  EurObserv'ER,  in  2013,  the  share  of  direct  and  indirect  renewable  energy  related 
employment in total employment of the economy in the Netherlands was at about 0.24%, below the 
EU average of 0.53%. The National Energy Review 2014 indicated that the share of direct and indirect 
renewable  energy  related  employment  in  total  employment  of  the  economy  was  approximately 
0.5%, slightly below the EU average of 0.53%.  

Source: European Commission, based on EurObserv'ER and EUROSTAT 

TRADE BALANCE OF ENERGY PRODUCTS 

The energy trade balance deficit of the Netherlands represents 3.5% of GDP in 2014, which is higher 
than  the  EU  average,  coinciding  almost  completely  with  the  deficit  on  the  oil  trade  balance.  The 
deficit has increased since 2006, again mainly driven by an increase in oil imports.  

0.00.40.81.21.62.02.420052012NLEU27Value added of energy sector% of grossvalue added (total economy)0.00.10.20.30.40.50.620052012NLEU27Employment in energy sector% of total employment 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union – The Netherlands 

Source: EUROSTAT 
*based on gas trade data reported as non-confidential and disseminated publicly. National statistics suggest there have been gas surpluses 
in both 2006 and 2014 (see Occasional Papers 196/2014) 
Note: Current account balance for EU28 from European Commission (AMECO) 

1. Energy Security, solidarity and trust 

ENERGY MIX 

The energy mix of the Netherlands differs from that of the EU-28, with the notable difference of a 
higher share of gases and – to a lesser extent – of petroleum and products. Compared to 1995, the 
share  of  petroleum  and  products  sharply  increased  (from  36%  to  42%  of  gross  inland  energy 
consumption), while the share of solid fuels decreased (by 2 percentage points). The share of gases 
decreased from 47 to 42% of the energy mix. 

Gross inland energy consumption in 2013  

Source: European Commission, based on EUROSTAT  

IMPORT DEPENDENCY 

The  Netherlands  has  a  low  overall  import  dependency  regarding  total  fossil  fuels,  and  actually 
exports gas. However, it has a very high import dependency for petroleum products, but a balanced 
range of import sources1, and therefore a low country supplier concentration index. The increase in 
earthquake activity has renewed concerns about the decline in Dutch gas production. Following the 

1  

Top non-EU gas suppliers table is based on EUROSTAT data. The share of imports from non-EU countries is calculated 
as the ratio between volumes of imports from that specific non-EU supplier and total imports  (from EU and non-EU 
countries). 

2 

-4-2024681012NLEU28% of GDPCoalOilElectricityGas*C. A. BalanceTrade balance of energy product and currentaccount balance, 2006 -4-2024681012NLEU28% of GDPCoalOilElectricityGas*C. A. BalanceTrade balance of energy product and currentaccount balance, 2014  
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union – The Netherlands 

recent  decision  to  decrease  production  in  2015,  the  Netherlands  needs  now  to  determine  its  gas 
production policy from 2016 onwards.   

Source: European Commission, based on EUROSTAT 

2. A fully-integrated internal energy market 

INTERCONNECTIONS 

The  interconnection  level  for  electricity  was  of  17%  in  2014  for  the 
Netherlands,  which  is  above  the  2020  and  2030  targets.  In  order  to 
accommodate the increase in generation capacity since 2008, the 380 
kV grid needs to be expanded. The interconnection between Denmark 
West and the Netherlands which may in a later stage also connect new 
offshore  wind  farms  to  the  cable  is  Netherlands'  most  important 
Project  of  Common  Interest  (PCI).  The  new  interconnection  between 
the  Netherlands  and  Germany  at  Doetinchem-West,  which  has  a 
capacity  of  1500  MW,  is  also  important.  This  is  aimed  at  solving  the 
problem  of  insufficient  interconnection  which  is  currently  evidenced 
when  the  price  drops  in  Germany  because  of  high  renewables 
production,  but  the  price  in  the  Netherlands  does  not  respond.  The 
Netherlands is expected to become a net exporter of electricity after 
2020.  

For  gas,  no  expansion  investments  are  required  to  accommodate 
demand  for  transportation  capacity.  This  is  consistent  with  the 
converging  wholesale  prices  observed  at  the  Northwest  European 
hubs  and  the  low  congestion  levels.  However,  the  Netherlands 
developed  a  strategy  to  become  Europe’s  ‘gas  roundabout’,  and  to 
diversify supply sources (LNG, countries of origin). One cluster of PCIs 
has been identified, implementing gas compressor optimisation. 

Source: European Commission based 
on ENTSO-E scenario outlook and 
adequacy forecast 2014 
Note:  Reference  to  2030  target  is 
based  on  October  2014  European 
Council  conclusions  stating  that 
"the  Commission  will  also  report 
regularly  to  the  European  Council 
with the objective of arriving at a 
15% target by 2030" 

3 

Top non-EU gas suppliers in 2013 (% in total imports)NetherlandsEuropean Union country[%]country[%]Norway59.8Russia39.0Russia15.9Norway29.5Algeria9.7Qatar6.738%26%97%95%-59%-87%52%53%82%87%57%65%200520132005201320052013All fuelsPetroleum andproductsNatural gasNLEU28Import dependency 2013 
 
 
 
 
 
 
 
 
Towards an Energy Union – The Netherlands 

ELECTRICITY AND GAS MARKETS 

Market concentration index for power generation (left) 
and gas supply (right) (2013) (Herfindahl index – 10000 
means monopoly) 

Sources: European Commission based on ESTAT, CEER and Platts 
Power Vision 

Sources:ESTAT and European Commission Calculations 

The  Dutch  power  generation  market  is  moderately  concentrated.  However,  the  production  and 
wholesale  gas  markets  in  the  Netherlands  are  concentrated  due  to  the  exploitation  of  the  large 
Groningen field by a single producer. Nevertheless, due to pro-market policy-making the Dutch gas 
hub TTF has developed into the most liquid gas hub in the EU. The Dutch retail electricity market is 
moderately concentrated. The concentration index for retail gas indicates high concentration. 
Wholesale electricity prices are in line with EU average, and below regarding gas prices.  Household 
electricity prices are slightly below EU average while household gas prices are above2. 
The  switching  rates  for  electricity  and  gas  consumers  are  well  above  the  EU  average  indicating  a 
dynamic and competitive market. Dutch consumers rate their electricity and gas retail markets above 
the EU average3.  
The  Netherlands  carried  out  the  cost  benefit  analysis  for  a  wide-scale  roll  out  of  electricity  smart 
metering (at least 80% by 2020) with positive results. 

CONTRIBUTION OF ENERGY TO CONSUMER PRICE EVOLUTION 

The inflation of consumer prices in the Netherlands has started decreasing only since 2012, with 
the first serious drop taking place in 2014, which is later than for the Euro Area as a whole where 
inflation  has  been  decreasing  since  2011.  The  difference  in  patterns  is  primarily  attributed  to 
different inflation patterns in the non-energy sectors.   

Source: DG ECFIN based on Eurostat 

Source:http://ec.europa.eu/eurostat/statistics-explained/index.php/Energy_price_statistics 
10th Consumer Markets Scoreboard (June 2014),   

2  
3  
http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/10_edition/index_en.htm 

4 

-10123420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsNetherlands : Price evolution & the contribution of energy prices-10123420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsEA : Price evolution & the contribution of energy prices 
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union – The Netherlands 

VULNERABLE CONSUMERS 

According  to  EUROSTAT  survey,  the  three 
proxy  indicators  related  to  fuel  poverty 
indicate that while relevant, the problem is 
more  limited  in  the  Netherlands  than  on 
average in the EU. Vulnerable consumers – 
defined  by  law  as  consumers  for  whom 
being  disconnected  from  electricity  or  gas 
would 
health 
consequences – can never be disconnected. 
A "non-disconnection period" running from 
1  October  to  1  April  also  applies  to  all 
households. 
households 
Low-income 
benefit from social support schemes. 

serious 

have 

very 

 Source: European Commission, based on on EUROSTAT SILC survey 

3. Energy Efficiency and moderation of energy demand 

ENERGY EFFICIENCY TARGET 2020 
(60.7 Mtoe primary energy and 52.2 Mtoe final energy) 

 Source:  European  Commission,  based  on  EUROSTAT  and  on  national  energy 

efficiency targets as declared by the MS under the Energy Efficiency Directive 

to 

primary 

Outlook 

improve 

target 
in 

The  Netherlands'  2020  energy 
is  60.7  Mtoe 
efficiency 
energy 
expressed 
consumption  (52.2  Mtoe  expressed 
in  final  energy  consumption).  The 
Netherlands  has  taken  additional 
energy 
measures 
efficiency. According to the National 
Energy 
the 
Netherlands  is  estimated  to  have  a 
final  energy  consumption  of  49.4 
Mtoe  in  2020.  The  Netherlands  is 
also  on  track  to  meet  the  target  of 
1.5% energy efficiency on an annual 
basis. When comparing the trend of 
primary  energy  consumption  with 
the GDP development over the past 
is  evidence  of  a 
decades,  there 
decoupling of both.   

2015, 

ENERGY INTENSITY 

Primary energy intensity of the Dutch economy as a whole has decreased from 2005, while remaining 
below  the  EU  average.  Although  a  significant  energy  intensity  reduction  has  been  recorded  in  the 
industrial  sector,  i.e.  about  12%  between  2000  and  2013,  this  is  less  than  the  average  energy 
intensity reduction  in the  EU28  over  the same period (i.e. about 21%).  Energy intensity in industry 
also remains above EU average.  

5 

 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union – The Netherlands 

Primary energy intensity of the economy     

Final energy intensity in industry 

Source: European Commission based on  EUROSTAT and European 

Commission/AMECO 

Source:  European  Commission  based  on    EUROSTAT 
and European Commission/AMECO 

Specific  energy  consumption  by  households  is  below  EU  average  and  decreased  somewhat  faster 
than the EU average over the 2005-2013 period. This is mainly due to improved housing insulation 
and increased roll-out of energy efficient household appliances. 
The specific energy intensity of passengers cars decreased slightly between 1995 and 2010, although 
somewhat  less  then  the  EU  average.  Emissions  of  new  cars  are  the  lowest  in  the  EU,  with  109  g 
CO2/km  in 2013.  However,  the specific energy  intensity for  freight  transport  increased  consistently 
between  1995-2010  (by  about  12%),  i.e.  from  the  same  unit  of  energy  fewer  tonnes  of  goods  are 
transported and/or on shorter distances (or the filling factor of goods in freight vehicles is lower). 

Final  energy  consumption  per  m2  in  residential 
sector, climate corrected 

Specific energy intensity for passenger cars and freight 
transport4  

Source: European Commission based on  Odyssee database 
EU  legislation  sets  mandatory  CO2  emission  reduction  targets  for  new  cars  and  vans.  By  2021,  the 
fleet average to be achieved by all new cars is 95 grams of CO2 per kilometre. For new vans, the fleet 
average is set at 147 g/km by 2020. 

Source:  PRIMES  model  background  data  and  estimations  based  on  EU 
Commission and EU MS inputs   

Source: European Environmental Agency. 2014 values are provisional. 2013 EU average refers to EU-27. 

4  

Statistics  on  energy  demand  for  passengers  and  freight  transport  are  not  available  and  model  estimates  have  been 
used instead. These issues should be borne in mind when comparing energy intensity in freight or passenger transport 
between Member States, which should be regarded as merely indicative. 

6 

 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union – The Netherlands 

Regarding transport performance, in EU-28 the inland freight modal shares are 71% by road, 17% by 
rail, 7% by inland waterways and 5% by pipelines. The respective inland passenger modal shares are 
82% by private car, 9% by buses and coaches, 7% by railways and 2% by tram and metro. Compared 
to  the  European  average,  the  Netherlands  report  the  highest  use  of  inland  waterways  in  freight 
transport, given the existence of a network of navigable rivers and canals in the country. 

Modal shares Netherlands 

Source: Eurostat and EU transport in figures 2015. Data refers to 2013. Modal shares based on tonne-kilometres for freight sector and 
passenger-kilometres for passenger sector, freight data based on activity within country territory. Estimates are made when data is missing. 

4. Decarbonisation of the economy 

NON-ETS GHG EMISSION REDUCTION TARGET 2020  
(-16% by 2020 as compared to 2005 in the non-ETS sector) 

its 
The  Netherlands  has  decreased 
emissions  by  23  %  between  2005  and 
2014 (approximated data). 
According  to  its  2015  projections,  the 
Netherlands is on track to reach its 2020 
target, with a 5 percentage point margin 
as compared to 2005.  

Non-ETS 
Emissions (vs. 
2005) 

Projections with 
existing 
measures 2020 

Projections/proxy 

target 

-21% 

-16% 

Proxy 2014 

-23% 

-5% 

Source: European Commission  based on EEA. Based on preliminary inventory 
data. 

ESD  (Effort  Sharing  Decision)  emissions  are  the  emissions  from  sectors  not 

covered by the EU ETS. 

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union – The Netherlands 

RENEWABLE ENERGY SHARE TARGET 2020 (14%) 

Source: European Commission based on  EUROSTAT 

towards 

the  2020 

With  a  renewable  energy  share  of  4.5%  in 
2013,  the  Netherlands  risk  missing  its  14% 
target  in  2020;  interim  figures  for  2014  are 
indicating  an 
to  5.6%.  Full 
increase 
implementation  of  the  Energy  Agreement 
is  necessary  for 
for  Sustainable  Growth 
progressing 
target. 
However,  according  to  the  National  Energy 
Outlook  2015,  the  current  measures  are 
projected  to  not  fully  deliver  on  the  2020 
target.  Hence,  the  Netherlands  is  taking 
additional measures. The planned evaluation 
of the Energy Agreement in 2016 should also 
be  used  to  look  into  additional  measures. 
Use  of  the  cooperation  mechanisms  under 
the  Renewables  Directive 
be 
considered  as  a  way  to  help  achieving  the 
2020 renewable energy target.  

could 

GREENHOUSE GAS EMISSION INDICATORS 

 

 

In  the  Netherlands,  the  GHG  emissions  per  capita  are  more  than  30%  higher  than  the  EU 
average.  
In 2014, the revenues from the auctioning of ETS allowances amounted to EUR 131.1 million. 

Largest Sectors of GHG 
Emissions in 2012 (*) 

Energy/power industry  

Transport 

Industry  

Agriculture (incl. forestry & 
fishery) 

Residential & Commercial 

Waste  

NL 

32% 

18% 

19% 

13% 

16% 

2% 

EU 
Average 

33% 

20% 

19% 

12% 

13% 

3% 

GHG Emissions 

NL 

EU 

EU ETS auctioning  revenues 
in 2014 (EUR millions) 

131.1 

3205 

Share of ETS emissions in 
2013 

GHG emissions/capita in 
2013 (tCO2equivalent)  
Carbon intensity of the 
economy in  2013 
(tCO2equivalent/(EUR 
millions) 

44% 

42% 

11.7 

8.5 

312 

328 

Source: European Commission  based on EEA 

. 

(*)Sec
toral 
break
down 
for 
2013 
data 
not 
availa

ble 

ENERGY & TRANSPORT TAXATION 

Energy and transport related taxes as a share of GDP amount to 3.0%, which is higher than the EU-
average.  This  is  mainly  due  to  comparatively  high  taxation  of  transport  vehicles  and  heat  and 
electricity, while taxation of transport fuel is slightly below average. The overall tax burden has fallen 
between  2005  and  2012,  possibly  reflecting  both  the  growth  of  GDP  and  the  pursued  climate  and 
energy policy. 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union – The Netherlands 

Source: Eurostat 

5. Research, innovation and competitiveness 

RESEARCH AND INNOVATION 

The Netherlands are below the EU average and main worldwide partners in terms of public support 
share allocated to research and innovation in the field of energy and environment. However, in terms 
of intensity of low-carbon technologies patents, the Netherlands performs much better, at a higher 
level than the EU as a whole and most trading partners.  

Source: European Commission based on  EUROSTAT   

COMPETITIVENESS 

The  real  unit  energy  costs5 are  almost  double in 
the  Netherlands  than  in  the  EU,  and  more  than 
three times as high as in the US. This reflects that 
energy  intensity6 of  the  manufacturing  sector  is 
high  in  relative  terms,  while  real  energy  prices 
are  in  line  with  the  US  and  have  increased  over 
the past ten years.  
As  regards  electricity  and  gas  prices  paid  by 
industrial customers, they remain well below EU 
average.  It  must  be  noted  that  for  gas 
in 
particular,  the  gap  between  minimum  and 
maximum  price  (depending  on  consumption 
band) paid by industrial customers is significant. 

Real unit energy costs (% of value added) 

Source: European Commission 

5  
6  

This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added. 
The  energy  intensity  presented  here  is  derived  from  Use  Tables  of  WIOD,  see  "Energy  Economic  Developments  in 
Europe SWD(2014)19". 

9 

0.01.02.03.04.0NLEU-28Energy & Transport related taxes % of GDP, 2005TransportvehiclesTransport fuelHeat &Electricity0.01.02.03.04.0NLEU-28Energy & Transport related taxes % of GDP, 2012TransportvehiclesTransport fuelHeat &Electricity14.99.58.222.113.28.825.113.78.0051015202530NLEU27US200020092011 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union – The Netherlands 

Source: European Commission based on EUROSTAT and IEA 

6. Post-2020 Energy and Climate policy Strategy  

COMPREHENSIVE MEDIUM TO LONG-TERM STRATEGY (post-2020) 
FOR CLIMATE AND ENERGY  

 

In  2011,  the  Government  submitted  a  "Climate  Letter  2050"  to  the  Parliament,  containing 
the  building  blocks  for  achieving  a  carbon-neutral  economy  by  2050.  In  October  2013,  a 
"Climate Agenda", describing goals and ambitions for 2030 and exploring and paving the way 
for the next steps towards 2030 and 2050, was agreed by the Government. The first biennial 
progress report on actions in the Climate Agenda is foreseen by the end of 2015.  

  The Energy Agreement that the Government signed with key stakeholder in 2013 aims to be 
a  step  towards  a  sustainable  energy  supply  system  by  2050.  The  parties  to  the  Agreement 
have  laid  out  one  goal  beyond  2020:  to  achieve  16%  renewable  energy  in  2023.  The 
Agreement also contains a preliminary goal to limit CO2 emissions in the transport sector to 
a maximum of 25 Mton CO2 equivalent on the way towards 60% CO2 emissions (compared 
to 1990) in 2050.  

NATIONAL TARGETS, especially for 2030 

Objective, 2030-2050 
GHG reduction  

Targets 
To  some 
extent 

Renewable energy  

Energy 
savings 

Efficiency 

/ 

Until 
2023 
No 

7. Regional cooperation  

Comments 

The  Energy  Agreement 
focuses  on  achieving  a 
reduction  in  CO2  emissions  of  80  to  95%  by  2050. 
Parties to the Energy Agreement have agreed on a 60% 
reduction in  GHG  emissions  in  the  transport sector  by 
2050  (compared  to  1990)  and  an  interim  reduction  of 
25 Mtoe (-17%) in 2030 
The Energy Agreement foresees 16% energy generated 
from renewable source by 2023 

The Netherlands is a member of the Pentalateral Energy Forum, which was created in 2005 by Energy 
Ministers  from  Benelux,  Germany  and  France  in  order  to  promote  collaboration  on  cross-border 

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union – The Netherlands 

exchange  of  electricity  and  natural  gas.  It  works  on  regional  initiatives  supported  by  the  European 
Commission to create a regional electricity and gas market as an intermediary step towards a single 
European  market.  The  Netherlands  also  participates  in  the  German-led  round-table  on  market 
developments. 

Regional  cooperation  on  infrastructure  development  is  necessary  to  optimise  the  identification  of 
regional  infrastructure  priorities  and  to  coordinate  cross-border  investments.    The  Netherlands  is 
member  of  three  Regional  Groups  which  have  been  established  under  the  TEN-E  Regulation: 
Northern Seas Offshore Grid, North South Electricity Interconnections in Western Europe, and North 
South Gas Interconnections in Western Europe. The Netherlands also plans to be part of the regional 
initiative on the promotion of the North Sea Offshore Grid, which aims to deliver cost-reduction to 
the offshore energy system.  

8. Cohesion policy contribution  

The EU Cohesion policy provides for investment possibilities to implement energy policy objectives in 
the Netherlands which will be complemented by national public and private co-financing, aiming at 
optimal leverage. It also ensures integrated territorial solutions to challenges by supporting capacity 
building, technical assistance and territorial cooperation. 

Internal Energy Market: Over 2014-2020, EU Cohesion Policy will invest some EUR 2 million in smart 
electricity distribution grids in the Netherlands.  

Energy  efficiency:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  57  million  in  energy 
efficiency  improvements  in  public  and  residential  buildings  and  in  enterprises  in  the  Netherlands.  
These  investments  are  expected  to  contribute  to  around  1  000  households  with  improved  energy 
consumption classification. 

Decarbonisation: Over 2014-2020, EU Cohesion Policy will invest some EUR 13 million in renewable 
energy  in  the  Netherlands.  These  investments  are  expected  to  contribute  to  around  70  MW  of 
additional capacity of renewable energy production. 

Research,  Innovation  and  Competitiveness:  Over  2014-2020,  EU  Cohesion  Policy  will  invest 
significantly in R&I and in SME competitiveness in the Netherlands. This will be based on the regional 
strategies for smart specialisation. For the Netherlands, the strategies include a focus on low-carbon 
technologies. At this stage, at least EUR 50 million is foreseen for investments in R&I and adoption of 
low-carbon technologies in the Netherlands, but this might increase further in line with the evolving 
content of the smart specialisation strategy. 

11