COMMISSION STAFF WORKING DOCUMENT Energy Union 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 Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Netherlands, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 406 final  COMMISSION STAFF WORKING DOCUMENT Energy Union 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  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
Energy Union –The Netherlands 

  The Netherlands 

                           Energy Union factsheet1 

Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2  accounted  for  6.3%  of  the  total  value  added  of  the  Netherlands  in  2015.  Similarly,  their 
share in total employment3  was 4.6% of total employment in 2015, of which 4.3% in the transport 
sector and 0.3% in the energy sector.   

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included in this analysis.   

(source: Eurostat) 

In the case of renewable energy sector, both the direct as well as the indirect effects on employment 
are being estimated. According to EurObserv'ER, in 2015, the share of direct and indirect renewable 
energy related employment in  total  employment of  the  economy in  the Netherlands  was  at  about 

1   The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working  Document  "Monitoring  progress  towards  the  Energy  Union  objectives  –  key  indicators" 
(SWD(2017)  32 
final)  https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf  

2   Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply 

and H-Transportation and storage 

3 National accounts, Eurostat 

1 

02468101214162005201520052015NLEU28[%]Value added of the sector as % of total economy gross value added EnergyTransport6.236.356.646.88Energy&Transport as % of total GVA:0123456789102005201520052015NLEU28[%]Employment in the sector as % of total employmentEnergyTransport4.964.575.575.46Energy&Transport as % of total employment: 
 
 
                                                            
Energy Union –The Netherlands 

0.35%, below the EU average of 0.54%. The turnover of the renewable energy industry in the same 
year was estimated at around EUR 3.6 billion, the biggest part being attributed to the wind (EUR 1.5 
billion) followed by photovoltaic (EUR 660 million), biomass (EUR 400 million) and heat pumps (EUR 
390 million) industries. 

(source: EC based on Eurobserv'Er and Eurostat) 

An indication of the level of investments in the energy sector in the Netherlands is given by the Gross 
fixed capital formation (GFCF)4. These investments, in the electricity and gas sectors, which are taken 
as reference sectors, have been on an increasing trend since 2008. They represented around 1% of 
the country's GDP in 2015, higher than in the pre-crisis period.  

(source: Eurostat) 

In  terms  of  trade,  the  Netherlands  is  net  exporter  of  electricity  and  a  net  importer  of  fossil  fuels 
(based  on  gas  trade  data  reported  as  non-confidential  and  disseminated  publicly)  and  different 
sources of biomass. However, national statistics suggest there have been gas surpluses in both 2006 

4 Gross fixed capital formation consists of resident producers´ acquisitions, less disposals, of fixed tangible or 
intangible assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other buildings. 
It  also  includes  foreign  direct  investment  (FDI).  Steam  and  air  conditioning  supply  are  also  included  in  the 
figures mentioned above as Eurostat reports electricity, gas, steam and air conditioning supply together. 

2 

0.0%0.2%0.4%0.6%0.8%1.0%1.2%2006200720082009201020112012201320142015[% GDP]GFCF in energy as share of GDP, Netherlands**GFCF=Grossfix capital formation 
 
 
                                                            
 
Energy Union –The Netherlands 

and  2014  (see  Occasional  Papers  196/2014).  The  trade  deficit  in  energy  products  has  fallen  from 
about  3%  of  GDP  in  2006  to  1.8%  in  2015.  The  largest  decrease  is  accounted  for  by  petroleum 
products. Furthermore, during the same period, the trade deficit for electricity (0.2%) has turned into 
a surplus of 0.1%. 

(source: Eurostat, based on gas trade data reported as non-confidential and disseminated publicly) 

Energy security, solidarity and trust 

 Energy Mix 

In comparison to the average energy mix in the EU, the energy mix of the Netherlands has a much 
higher  share  of  natural  gas  usage  (38%  vs  22%)  and  a,  albeit  less  pronounced,    higher  share  of  oil 
products  (40.6%  vs  34.4%)  in  gross  inland  consumption  of  primary  products.  Conversely,  nuclear 
power (1.4% v 13.6%) and renewables (4.7% vs 13%) have a lower relative importance in the Dutch 
energy mix than elsewhere in the EU. The Netherlands has one nuclear power plant at Borsele, which 
is currently scheduled to close in 2033. 

(source: ESTAT) 

3 

-3.5-3.0-2.5-2.0-1.5-1.0-0.50.00.52006201520062015NLEU28[% of GDP]Trade balance of energy product and current  account balanceGasOilCoalElectricity-3.05-1.81-2.24-1.69Trade balance of all energy products [%GDP]: 
 
 
 
 
 
 
 
Energy Union –The Netherlands 

 Import dependency and security of supply 

Although currently comparatively low, energy import dependency is expected to increase. With net 
import dependency amounting to around 52% of domestic demand, the Netherlands has an overall 
average energy import dependency. Nevertheless the Netherlands is highly dependent on imports of 
crude  oil  and  hard  coal.  Gas  production  has  started  to  decrease  and  will  continue  to  do  so  in  the 
coming years as a result of production ceilings set for the Groningen field (due to earthquakes) and 
lower  production  levels  at  other  small  gas  fields  following  natural  depletion.  According  to  the 
International Energy Agency, the Netherlands is expected to become a net importer of gas by 2025.  

(source: ESTAT) 

Imports of uranium and nuclear fuels are not included in Eurostat's energy balances. However, the 
Netherlands is a major supplier of uranium enrichment services through the Urenco site at Almelo. 
The three European Urenco sites (in the Netherlands, Germany and the UK) account for circa 30% of 
global enrichment capacity whereas the Netherlands has only one nuclear power plant at Borsele.  

The  Netherlands  complies  (easily)  with  the  N-1-  gas  requirement.  Security  of  supply  is  facilitated 
through the large indigenous production that, moreover, does not depend on one single production 
facility. Indeed, the largest Groningen field is divided into over 20 facilities, and additional national 
production is delivered through more than 236 so-called “small fields.” Notwithstanding the down-
scaling  of  the  annual  Groningen  production,  the  measures  that  are  taken  assure  that  under  peak 
and/or emergency situations maximum required production capacity will still be available.  

(source: gas coordination group) 

4 

198.0%N-1 rule for gas2016threshold 100%NL 
 
 
Energy Union –The Netherlands 

1. 

Internal market 

1.1.1.  Interconnections and wholesale market functioning 
Electricity 

(source: EC services based on ENTSOE)   (source: EC services based on ESTAT)       (source: EC services based on Platts and 

European power exchanges) 

The  Netherlands  is  currently  interconnected  with  Germany,  Belgium,  the  UK  and  Norway.  The 
interconnection level5 for electricity is 18% in January 2017 for the Netherlands, which is above the 
2020 target.  

The  Netherlands  currently  has  two  Projects  of  Common  Interest  in  electricity  to  increase 
interconnection  capacity:  Denmark  —  Netherlands  interconnection  between  Endrup  (DK)  and 
Eemshaven  (NL) (currently known as “COBRAcable”); and Germany — Netherlands interconnection 
between Niederrhein (DE) and Doetinchem (NL). 

The COBRA cable will have a capacity of approx. 700 MW, will be around 325 kilometres long, and 
will run from Eemshaven (the Netherlands) to Endrup (Denmark) via the German sector of the North 
Sea. The cobra cable may, in a later stage, also connect new offshore wind farms to the cable and is 
NL most important PCI, related to the North Sea cooperation. Two onshore converter stations – one 
in the Netherlands and one in Denmark – are needed to connect them to the existing grids. Work on-
shore  on  the  COBRA  cable  has  started  in  both  the  Netherlands  and  in  Denmark  last  year.  In  the 
Netherlands the works on the subsea cable have started in January 2017. 

Even  though  the  Netherlands  has  an  interconnection  rate  of  18%,  there  are  occasional  cases  of 
congestion preventing Dutch wholesale prices to respond when wholesale prices in Germany drop as 
a result of high renewables penetration. The second PCI on the list will contribute to resolving this 
issue.  

5 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] 
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E 
Winter Outlook 2016/2017) 

5 

 
 
                                                            
Energy Union –The Netherlands 

The  concentration  of  Dutch  power  generation  market  is  low,  indicated  a  vigorous  competition. 
Wholesale  electricity  prices  are  in  line  with  the  EU  average  after  they  converged  (downwards) 
towards the EU average in recent years. 

1.1.2. Gas 

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.  There  are  currently  no  gas  PCIs  in  the  Netherlands. 
However,  the  Netherlands  developed  a  strategy  to  become  Europe’s  ‘gas  roundabout’,  and  to 
diversify supply sources (LNG, countries of origin).  

Concentration in the Dutch wholesale gas supply market gas market is relatively low, below the EU 
average. Due to pro-market policy-making the Dutch gas hub TTF has developed into the most liquid 
gas hub in the EU, and has below average gas prices.  

(source: ACER for the left graph and EC services based on Platts, gas hubs, ESTAT for the right graph) 

1.2.Retail electricity and gas markets 

1.2.1.Electricity 

In 2016, household electricity prices in the Netherlands were at 15.9 euro cents per kWh, below the 
EU average. Between 2013 and 2016, average band retail electricity prices for households decreased, 
but to a lesser extent than the wholesale prices. This was in spite of a 2.5 percentage point decrease 
in taxes and levies.  

The Netherlands has the second highest electricity switching rates in the EU (15% in 2015 and 16.4% 
in  2016)  and  consumer  satisfaction  in  electricity  services  is  well  above  the  EU  average.  With  an 
ongoing  national  smart  meter  deployment  programme,  the  Netherlands  has  also  seen  a  sharply 
increased deployment of smart meters, 21.8% of household customers having smart meters in 2015.  

6 

 
 
 
 
Energy Union –The Netherlands 

(source: ACER) 

    (source: Eurostat) 

(source: Eurostat) 

1.2.2.Gas 

The  Netherlands  has  one  of  the  highest  gas  switching  rates  in  the  EU,  at  15%,  suggesting  strong 
consumer  engagement  in  the  market.  Between  2013  and  2016,  average  band  retail  gas  prices  for 
households decreased by 5 euro cents per kWh. Nevertheless, in 2016, household gas prices in the 
Netherlands were over 25% above the EU average at 8.1 euro cents per kWh, which can be explained 
by a higher share of taxes and levies. 

Almost  30%  of  household  customers  in  the  Netherlands  had  gas  smart  meters  in  2015,  by  far  the 
highest of any Member State. 

(source: ACER) 

     (source: Eurostat) 

(source: Eurostat) 

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy Union –The Netherlands 

1.2.3. Market performance indicators 

According to the periodical survey of the European Commission, Netherlands consumers are close to 
the EU average with regards to consumers' satisfaction with electricity and gas services.  

(source: DG JUST survey) 

1.3. Energy affordability  

Energy  affordability  is  understood  as  consumers'  ability  to  pay  for  their  energy  needs  without  this 
negatively impacting their comfort and livelihood. Affordability can be measured by looking at how 
much people in the lowest income bracket have to pay for their energy needs (or, in other words, by 
calculating  the  share  of  energy  expenditure  in  total  household  expenditure  for  the  quintile  of 
population  with  the  lowest  income).  In  the  Netherlands,  the  share  of  energy  in  total  household 
expenditures of this quintile of the population was 6.5% in 2013/2014, well below the EU28 average 
of 8.6%. In 2015 in the Netherlands, 8% of citizens  below the at-risk-of poverty threshold  consider 
that they are unable to keep their home adequately warm, a decrease of 1.5 points from 2005. This 
can at least partially be explained by the rapidly improving efficiency of residential buildings. 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

8 

 
 
 
 
 
 
Energy Union –The Netherlands 

Energy efficiency and moderation of demand 

The  Netherlands'  2020  energy  efficiency  target  is  60.7  Mtoe  expressed  in  primary  energy 
consumption  (52.2  Mtoe  expressed  in  final  energy  consumption).  The  Netherlands  is  on  track  to 
meet  the  target  of  1.5%  energy  efficiency  savings  on  an  annual  basis  (Art.  7)  and  has  to  keep  its 
efforts  to  ensure  the  targets  are  met,  given  that  the  latest  available  data  show  a  slight  increase  in 
their energy consumption trends.  

(source: Eurostat) 

Primary  energy  intensity  of  the  Dutch  economy  as  a  whole  has  decreased  from  2005,  while 
remaining  below  the  EU  average.  Between  2005  and  2015,  the  primary  energy  intensity  of  the 
economy (expressed by the ratio of primary energy consumption over GDP) has decreased annually 
by 1.6 %. This is lower than the EU average of 2 % annual change. 

Overall, the split of final energy consumption by sector in the Netherlands is similar with the one at 
the EU level. Nevertheless, the share of energy consumption in agriculture (horticulture) is notably 
higher  than  for  the  EU  as  a  whole  (7.8%  vs  2.3%)  but  is  declining  and  the  share  of  energy 
consumption in the residential sector is slightly lower than at the EU average (19.7% vs. 25.4%). 

(source: Eurostat) 

Although a significant (final) energy intensity reduction has been recorded in the industrial sector, i.e. 
about 14.9% between 2000 and 2015, this is less than the average energy intensity reduction in the 
EU28  over  the  same  period  (i.e.  18.8%).  The  energy  intensity  in  industry  also  remains  above  EU 
average. 

9 

 
 
 
Energy Union –The Netherlands 

The specific energy consumption per square meter in the residential sector is below EU average and 
decreased by almost 1 p.p. faster than the EU average over the 2005-2015 period. This is mainly due 
to improved housing insulation and increased roll-out of energy efficient household appliances. 

(source: Eurostat)  

(source: Eurostat)  

  (source: Odyssee database) 

Energy in transport 

Between 2005 and 2015 in the Netherlands, the final energy consumption in transport recorded an 
average annual reduction of 0.6 %, while GDP increased annually by 1 %. This occurred in a context 
of  increase  of  freight  transport  activity  (except  2009,  a  year  of  economic  recession),  i.e.  8.5% 
between 2005 and 2015. Regarding transport performance, 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. 

(source: Eurostat)  

        (source: Eurostat and DG MOVE pocketbook) 

The share of collective land transport in all passengers' transport increased between 2005 and 2015 
by 2 percentage points (from 11.8% to 13.9%) indicating a higher use of collective transport means 
(including trains, motor coaches, buses and trolley buses) in the Netherlands. This share is below the 
EU average (of 17.3% in 2015).  

10 

 
 
 
 
 
 
 
 
 
 
Energy Union –The Netherlands 

(source: Eurostat)  

The  Netherlands  is  characterised  by  a  high  density  of  population  and  a  detailed  network  of  roads, 
canals and transport infrastructure in general. It is also a typical cycling country in the EU.  

The  Netherlands  is  leading  the  Member  States  in  the  transition  towards  automated  mobility. 
Automated mobility is believed to have a very important potential in terms of energy efficiency and 
more rational use of our resources.  To that end, they organised in April 2016 a dedicated ministerial 
meeting  where  the  Amsterdam  Declaration  on  automated  mobility6  was  adopted.  Several  pilot 
projects  are  running  and  they  are  very  active  with  field  operational  tests.  The  Dutch  have  a 
comprehensive  perspective  in  the  way  that  they  not  only  look  at  road  vehicles  (cars,  busses  and 
trucks), but equally ships, inland vessels and drones. 

The Netherlands has been investing a lot in additional road infrastructure (notably the widening of 
the A2 highway connecting Amsterdam to Utrecht). This has so far resulted in a better flow of the 
road traffic and decreased congestion and thus less wasted emissions. There are no road tolls in the 
Netherlands. An attempt to introduce a highway toll was made in 2010, but it has since then been 
discarded.  

Decarbonisation of economy 

 GHG emissions 

In  2016,  GHG  emissions  in  the  Netherlands  were  around  8%  below  1990  levels,  which  is  a  lower 
reduction than the EU average of  -22%. The Netherlands committed to a non-ETS target of a 16 % 
reduction in emissions by 2020 compared to 2005 levels. Non-ETS emissions were reduced by 20% 
between 2005 and 2016. According to the latest national projections submitted to the Commission 
and taking into account existing measures, the 2020 target is expected to be met by a margin of 10 
percentage points. 

6   https://english.eu2016.nl/documents/publications/2016/04/14/declaration-of-amsterdam  

11 

 
 
 
                 
 
 
                                                            
Energy Union –The Netherlands 

(source: EC and EEA)   

According  to  EEA  estimates,  the  GHG  intensity  of  the  Netherlands'  economy  was  below  the  EU 
average,  decreasing  at  a  similar  pace  since  1990.  In  2016,  the  GHG  emissions  per  capita  in  the 
Netherlands were 40% above the EU average, increasing from around 25% above the EU average in 
1990. 

In 2015, the largest sectors in terms of GHG emissions were the energy sector (more than 1/3 of the 
total  GHG  emissions)  followed  by  industry  (18%),  transport  (16%)  and  agriculture,  forestry  and 
fishery (15%).  

(source: EC and EEA)   

Preliminary accounts under the Kyoto Protocol for the Netherlands show overall emissions of 0.7 Mt 
CO2eq. as an annual average in the period 2013-2015. For comparison, the annual average of the EU-
28  accounted  for  removals  of  119.0  Mt  CO2eq.  The  Netherlands  is  one  of  four  EU  Member  States 
which  show  overall  emissions  in  this  preliminary  accounting  exercise  and  the  only  Member  State 
with no accounted data for Forest Management.  

Removals by Afforestation are lower than emissions by Deforestation. Overall, there is a decreasing 
trend in emissions, mainly due to increasing removals by Afforestation over the course of the three-
year period. This trend is partly compensated by slightly increasing emissions by Deforestation. 

12 

 
 
 
 
 
Energy Union –The Netherlands 

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 

(source: EC and EEA) 

CO2 emissions in transport and alternative fuelled vehicles 

The average CO2 emissions of new cars in the Netherlands were in 2016 below the EU average, and 
decreased considerably between 2005 and 2016 by 37.7%7 (compared to 27.3% reduction for the EU 
average). This is notably the result of tax incentives in the transport sector.  

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 gCO2/km. For new vans, the fleet average is set at 
147 gCO2/km by 2020. 

 (source: European Environment Agency) 

The number of electric charging points in the Netherlands has more than quadrupled from 2013 to 
2016, from 5 878 to 26 700 units, the highest number of charging points in the EU in 2016. The sale 
of alternative fuel vehicles is also among the highest in the EU. 

7 It should be noted that these figures refer to test cycle CO2-performance and not to observed real-world CO2-

performance of new vehicles. 

13 

 
 
 
 
                                                            
Energy Union –The Netherlands 

 (European Environment Agency)  

       (European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objective and measures for the development of the market of alternative fuels in 
the  transport  sector  and  the  deployment  of  the  relevant  infrastructure.  The  Netherlands  has 
submitted its National Policy Framework as requested under article 3 of the Directive 2014/94/EU.  

A detailed assessment of the Dutch National Policy Framework in terms of its compliance with the 
requirements  of  Directive  2014/94/EU  on  alternative  fuels  infrastructure,  its  contribution  to 
achievement  of  long-term energy and  climate objectives  of  the Union  and  coherence of  its  targets 
and objectives in terms of cross-border continuity has been published as part of the Communication 
on  Alternative  Fuels  Action  Plans  (COM(2017)652)  and   the  related  staff  working  document 
SWD(2017)365. 

1.4. Adaptation to climate change 

Dutch  adaptation  policy  has  two  components:  the  2016  National  Climate  Adaptation  Strategy 
“Adapting with Ambition” (December 2016) and the 2012 Delta Programme. The Adaptation Strategy 
is  complementary  to  the  Delta  Programme.  It  describes  how  climate  change  will  affect  life  in  the 
Netherlands, drawing particular attention to those effects which are likely to have significant impact 
in  the  years  ahead,  such  as  water  management,  health,  agriculture  and  forestry,  recreation, 
infrastructure and energy.  

The next step is to produce a Climate Adaptation Implementation Programme, publication of which 
is scheduled for the end of 2017.  

The  Delta  Programme  involves  many measures  for  adaptation.  The  aim  is  to  ensure  that  flood  risk 
management,  freshwater  supply,  and  spatial  planning  will  be  climate-proof  and  water-resilient  by 
2050,  in  the  face  of  increasing  weather  extremes.  The  ‘DeltaPlan  for  Spatial  Adaptation’  (DSA)  has 
been  established.  Following  the  Delta  Decision  on  Spatial  Adaptation,  it  will  specifically  follow  a 
territorial approach.  

14 

 
 
 
 
 
 
 
Energy Union –The Netherlands 

The Monitoring and Evaluation framework for climate change adaptation is under development. 

1.5. Taxes on energy and transport and fossil fuel subsidies 

The overall tax burden on energy and transport in the Netherlands amounts to 2.9%, around 0.5 p.p. 
higher than the EU average. It is particularly the tax burden on transport vehicles that is higher, while 
fuel taxation is slightly below the EU-average. Taxation of heat and electricity is somewhat above the 
EU-average,  and  has  also  shown  an  increase  since  2007.  The  tax  burden  on  vehicles  and  transport 
fuels  has  in  contrast  fallen  since  2007.  Both  the  registration  and  the  circulation  tax  for  cars  in  the 
Netherlands  consider  CO2  emissions  in  their  rates.  Overall,  revenues  from  environmental  taxation 
are higher in the Netherlands than in the majority of Member States. 

(source: Eurostat) 

Fossil  fuel  subsidies  decreased  sharply  in  the  Netherlands  after  2013,  when  the  differentiated  tax 
scheme  for  diesel  according  to  its  uses  was  terminated.  This  happened  because  the  policy  was 
environmentally  harmful,  and  implementation  of  the  policy  was  costly  as  monitoring  diesel  use  by 
activity was expensive. Netherlands currently only provides consumption tax concessions for natural 
gas and electricity used in heating the buildings of non-profit organisations. 

15 

0123452007201420072014NLEU28[% GDP]Energy & Transport related taxes as % GDPHeat & ElectricityTransport VehiclesTransport Fuel2.942.902.282.37Total transport and electricity taxes [%GDP]: 
  
 
 
 
 
Energy Union –The Netherlands 

(source: OECD Inventory of Support Measures for Fossil Fuels 2015)  

1.6. Renewable energy  

The Netherlands is the only Member State that did not reach its 2013/2014 indicative RED trajectory 
of  5.9%  in  gross  final  energy  consumption.  With  a  5.84%  renewable  energy  share  in  gross  final 
energy consumption in 2015, the Netherlands is also expected to miss its 2015/2016 indicative RED 
trajectory of 7.6%. While the National Energy Outlook 2016 projected an acceleration of the increase 
in the renewable energy share towards 2020, it is still uncertain if the Netherlands will fully deliver 
on  the  2020  target  without  additional  efforts.  At  the  same  time,  the  national  target  of  16% 
renewable energy in 2023 agreed upon in the National Energy Agreement is expected to be met.  

Following  the  results  of  the  National  Energy  Outlook  and  the  evaluation  of  its  National  Energy 
Agreement  in  October  2016,  the  government  has  proposed  an  acceleration  of  its  plans  to  support 
renewables  in  2017.  These  measures  include,  amongst  others,  an  increased  budget  for  their  main 
support  scheme  (SDE+)  for  renewables  from  EUR  2.5  billion  in  2015  to  EUR  9  billion  in  2016  to  12 
billion in 2017. The 2016 tender has supported 2.3 GW of additional renewable energy projects, and 
the  first  tender  round  of  this  support  scheme  in  2017  has  supported  3.2  GW  of  renewable  energy 
projects. Following the successful separate tendering processes for 1380 MW of offshore wind, the 
government has also proposed additional tenders for offshore wind before 2020, and an extension of 
new policy support initiative for small renewable heat projects (ISDE) that has been opened in 2016. 
Furthermore, the Netherlands has put all of the necessary elements in place to facilitate to reduce 
administrative barriers. 

Finally,  the  government  published  its  'Energy  Agenda  2050',  which  is  their  proposal  to  achieve  the 
2050  that  were  previously  set  out  by  the  "national  energy  outlook"  and  the  'national  energy 
agreement'. The energy agenda is based on the premise to achieve the EU target of 14% RES in 2020 
and the national target of 16% in 2023. Use of the cooperation mechanisms under the Renewables 
Directive  could  be  considered  as  a  way  to  help  achieving  the  2020  renewable  energy  target,  if 
necessary. 

 (source: Eurostat-SHARES) 

16 

 
 
Energy Union –The Netherlands 

(source: Eurostat-SHARES) 

It is estimated that as comparing to 2005, the Netherlands avoided in 2015 about 3.1 % of the fossil 
fuel  in  gross  inland  consumption  and  about  3.3 %  of  GHG  emissions  at  national  level  due  to  the 
deployment of the renewable energy systems.  8 This is considerably lower than the EU-28 average, 
which for fossil fuel and GHG emission avoidance stood at 10.1 % and 9.1 % respectively. 

 (source: EEA) 

1.7. Contribution of the Energy Union to better air quality 

Since  the  introduction  of  the  'National  Air  Quality  Cooperation  Program'9  in  2009,  the  Dutch 
authorities have reported an average reduction of PM10 and NO2 concentrations of 0,8 µgr/year and 
0,6 µgr/year respectively10. Nevertheless, air quality in the Netherlands continues to give cause for 
concern.  For  the  year  2013,  the  European  Environment  Agency  estimated  that  about  11,530 
premature deaths were attributable to fine particulate matter (PM2.5) concentrations and over 1,820 
to nitrogen dioxide (NO2) concentrations11.  

8   Avoided  GHG  emissions  mentioned  here  have  a  theoretical  character  as  these  contributions  do  not 
necessarily  represent  'net  GHG  savings  per  se'  nor  are  they  based  on  life-cycle  assessment  or  full  carbon 
accounting. 

9 In Dutch: Nationaal Samenwerkingsprogramma Luchtkwaliteit (NSL), https://www.government.nl/topics/environment/air-
quality/measures-to-tackle-air-pollution 
10 European Environment Agency (EEA), Air quality in Europe – 2016 report, Annex 1 
11 European Environment Agency, 2016, Air Quality in Europe – 2016 Report, table 10.2. The report also includes details 

as regards the underpinning methodology for calculating premature deaths. 

17 

 
 
 
 
                                                            
Energy Union –The Netherlands 

For both pollutants the Netherlands reported exceedances of the binding EU air quality standards12. 
For the year 2015, the Netherlands reported exceedances of the limit value for PM10 in 1 out of the 9 
air quality zones in the Netherlands while exceedances of the limit value for NO2 were reported in 2 
of the 9 zones as shown in the figure below13.  

(source: EEA) 

There are indications that the health-related external costs from air pollution in the Netherlands are 
more than EUR 13 billion/year (income adjusted, 2010), which includes the intrinsic value of living a 
healthy life without premature death as well as the direct costs to the economy such as healthcare 
costs and lost working days due to sickness caused by air pollution14. 

The  Energy  Union  can  substantially  contribute  to  addressing  these  air  quality  problems  through 
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NOx) 
from major contributing sectors such as (road) transport, energy production, industry and residential 
heating (e.g. stoves and boilers) as shown in the figure below15. 

12 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner 
air for Europe, OJ L 152, 11.6.2008, p.1-44 

on 

the 

(available 

13 Compliance data as reported by the Member States as part of their official annual air quality report for the calender year 
2015 
Repository), 
http://cdr.eionet.europa.eu/nl/eu/aqd  
14  See  also  the  EU  Environmental  Implementation  Review  Country  Report  for  the  Netherlands,  SWD(2017)52  final  of 
3.2.2017 
15  National  emission  data  as  reported  by  the  Member  States  to  the  EEA  (available  on  the  EEA's  Eionet/Central  Data 
Repository), http://cdr.eionet.europa.eu/nl/eu/nec_revised 

Eionet/Central  Data 

Environment 

European 

Agency's 

(EEA) 

18 

012345678910NO2 Annual limit valuePM2.5 Annual limit valuePM10 Daily limit value[number of zones]Air quality zones in exceedance of EU air quality standards number of zones exceedingnumber of zones not exceedingNL 
 
 
                                                            
Energy Union –The Netherlands 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.) 

Research, innovation and competitiveness  

1.8. Research and innovation policy 

In  the  2013  Energy  Agreement  for  Sustainable  Growth,  the  Dutch  government  committed  to  an 
ambitious level of public investment on clean energy research and innovation (R&I), most notably in 
the demonstration phase of the technology cycle, giving a strong boost to investments in this field. 
The following ambitions of the Energy Agreement for Sustainable Growth form the core of the Dutch 
government’s public funding commitments up to 2020: 

  A  grant  programme  for  demonstration  projects  with  considerable  export  potential  in  the 
area of energy innovation. Under this programme, launched in 2014, Dutch companies may 
receive up to EUR 6 million per project to demonstrate new sustainable energy technologies 
and energy efficiency innovations. 
Investments in offshore wind energy projects demonstrating innovative techniques aimed at 
achieving a cost reduction of 40% through process innovation. 

 

  A  financial  allocation  of  EUR  50  million  per  year  during  2016-2019  from  the  Stimulation  of 
Sustainable Energy Production (SDE+) operating fund for energy innovation aimed at making 
renewable energy production in the Netherlands more cost-effective. 

  Additional public funding made available for innovative energy efficiency projects in the built 
environment,  with  a  view  to  accelerating  the  cost-effective  adoption  of  energy  efficiency 
technologies.  

Furthermore, funding will be maintained at more or less current levels for activities in the following 
areas:  (a)  Fundamental  research  on  clean  energy  technologies;  (b)  Public  funding  for  clean  energy 
technologies in collaboration with the private sector and knowledge institutions; (c) Applied research 
into energy innovation. 

The  Netherlands  is  a  very  active  contributor  to  the  ongoing  work  of  the  Strategic  Energy 
Technologies (SET) Plan. It participates in eleven (out of fourteen) temporary working groups for the 

19 

4.6%21.2%4.0%4.8%34.7%8.0%0.3%22.3%0.0%AgricultureCommercial, institutional and householdsEnergy production and distributionEnergy use in industryIndustrial processes and product useNon-road transportOtherRoad transportWastePM2.5 emissions by sectors -2015*NL1.5%17.2%13.5%14.2%0.3%16.0%0.0%37.2%0.0%NOx emisisons by sectors -2015* *NECD data submitted by MS to EEA at 28th May 2015 
 
 
 
Energy Union –The Netherlands 

implementation  of  the  integrated  SET  Plan,  and  leads  the  one  dedicated  to  offshore  wind  and  co-
leads the one dedicated to carbon capture and storage/use. 

Regarding  the  Horizon  2020  programme,  The  Netherlands  has  so  far  received  7.2%  of  the  EU 
contribution  devoted  to  the  'secure,  clean  and  efficient  energy'  part  of  the  programme.  As  of 
September  2017,  277  participations  from  Dutch  organisations  have  been  awarded  over  EUR  131 
million in Horizon 2020 energy projects. This includes a grant of almost EUR 3.5 million to the Energy 
Research Centre of the Netherlands for its participation in project STEPWISE (CO2 capture), and five 
grants  totalling  over  EUR  9.6  million  to  Dutch  beneficiaries  participating  in  project  PROMOTION 
(offshore transmission networks). 

The  Netherlands  joined  the  Mission  Innovation16  initiative  as  a  fully-fledged  member  in  November 
2016,  during  the  Conference  of  Parties  in  Marrakesh  (COP22).  As  a  result,  it  has  committed  to 
doubling  funding  of  the  main  programs  of  clean  energy  R&I17  from  a  base-line  level  of  EUR  100 
million  per  year18  to  EUR  237  million  in  2020.  This  funding  will  be  dedicated  to  research, 
development  and  demonstration  programs  supporting  renewable  energy  technologies  (including 
offshore and onshore wind), energy-efficiency technologies, carbon capture and storage, and other 
crosscutting technologies. 

1.9. Investments and patents in the Energy Union R&I priorities  

In  2015,  public  (national)  investments  in  the  Energy  Union  R&I  priorities  reached  EUR  181  million, 
having  increased  by  18%  compared  to  2014.  The  largest  share  of  these  investments  (41%)  was 
attracted by the Renewables R&I priority of the Energy Union, followed by the Smart Systems priority 
(21%).  In  the  period  2007-2015,  the  maximum  annual  public  investment  was  EUR  350  million, 
reported in 2010. In 2014, the most recent year for which data for most Member States are available, 
public investment per GDP in the Netherlands was lower than the EU average. 

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 846 million (5% 
of the private R&I investment in  Energy Union R&I priorities in  the EU). The  focus was on  Efficient 
Systems,  which  received  37%  of  these  investments,  followed  by  the  Smart  System  priority  with  a 
share of 28%. 

In  2013,  the  latest  year  for  which  complete  patent19  statistics  are  available,  141  companies  and 
research organisations based in the Netherlands filed 298 patents in low-carbon energy technologies 
(5%  of  the  EU  total).  The  focus  was  on  Smart  System  (38%),  followed  by  Renewables  and  Efficient 
system (23% each). 

In 2013, private R&I investments and patents in Energy Union R&I priorities were higher than the EU 
average  when  normalised  by  GDP  and  by  population  respectively.  In  the  period  2007-2013,  both 
private  R&I  investments  and  the  number  of  patents  in  Energy  Union  R&I  priorities  increased  on 
average by 6% and 15% per year, similarly to the respective indicators at EU level. 

16   http://mission-innovation.net/ 
17    Programmes funded by the Ministry of Economic Affairs and the Ministry of the Interior and Kingdom Relations 
18   average annual financing during 2013-2015  
19  

In the context of this document, the term 'patent' refers to patent families, rather than applications, as a measure of 
innovative activity. Patent families include all documents relevant to a distinct invention (e.g. applications to multiple 
authorities),  thus  preventing  multiple  counting.  A  fraction  of  the  family  is  allocated  to  each  applicant  and  relevant 
technology. 

20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
Energy Union –The Netherlands 

Note: The international comparison (right) is shown for 2014 (The Netherlands had reported EUR 132 million). 
Reporting at EU level for 2015 is not as complete, and very few countries have reported for 2016. 

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database20 for 
codes  relevant  to  Energy  Union  RIC  priorities.  Patent  data  based  on  the  European  Patent  Office  PATSTAT 
database21. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC22.) 

1.10.Competitiveness 

In 2014, the real unit energy costs (RUEC) in the Netherlands 23(17.2) were above those at the EU 
average (15.3), more than double than those in the US but below those in Japan, Russia and China. 
The  electricity  prices  paid  by  industrial  customers  in  the  Netherlands  are  below  the  EU  and  OECD 
averages  but  still  higher  than  e.g.  in  the  United  States  and  Mexico.  Conversely,  gas  prices  for 
industrial consumers are around the EU average but above OECD average. 

20 http://www.iea.org/statistics/RDDonlinedataservice/  
21 https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
22 https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies  
23   This indicator measures the amount of money spent on energy sources needed to obtain one unit of value 

added. 

21 

 
 
 
 
 
                                                            
Energy Union –The Netherlands 

(source: ECFIN) 

                   (source: ESTAT and IEA) 

Regarding  the  competitiveness  in  renewable  energy,  the  Netherlands  are  not  specialised  in  either 
wind  or  solar  energy  as  indicated  by  revealed  comparative  advantage  indicators24  below  1.  No 
progress has been made in the wind sector since 2005, despite a meteorological advantage. In terms 
of  solar  energy  the  comparative  advantage  has  improved  since  2005  but  remains  below  one.  The 
relative  trade  balance25  shows  that  the  Netherlands  are  a  net  exporter  of  wind  components,  in 
particular power electronics, yet considerably below the EU average. Like the EU28, the Netherlands 
are a net importer of solar energy equipment. 

(source: UN comtrade) 

24  

The RCA index for product "i" is defined as follows: RCAi =

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and 

j is the country and w is the reference group, the World economy. 2005 refers in the text to the indicator average 
over the 2000-2009 period, while 2015 represents the average over the 2010-2016 period. The same applies for 
the RTB indicator - see below. 
25  

The RTB indicator for product "i" is defined as follows: 𝑅𝑇𝐵𝑖 =

 where 𝑋𝑖 is the value of product's 

𝑋𝑖−𝑀𝑖
𝑋𝑖+𝑀𝑖

"i" exports and 𝑀𝑖 imports. 

22 

0123456solarwindsolarwindNLEU28[-]Revealed Comparative Advantage -RCA200520150.250.00-0.070.22absolute change 2005 -2015:-1.0-0.50.00.51.0solarwindsolarwindNLEU28[-]Relative Trade Balance -RTB20052015-0.020.08-0.080.06absolute change 2005 -2015: 
 
 
 
 
 
 
 
                                                            
Energy Union –The Netherlands 

Regional and local cooperation 

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 
exchange of electricity and natural gas. Supported by the European Commission, it further develops 
the regional electricity and gas market as part of the 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. 

During  the  Netherlands  Presidency  of  the  Council  of  the  EU  in  2016,  large  steps  were  taken  to 
promote regional cooperation around the North Seas, resulting in the Political Declaration on Energy 
Cooperation between 10 North Seas Countries, as signed in June 2016. The cooperation, driven by a 
High level group and various working groups, focuses primarily on the cost-effective deployment of 
offshore wind generation, but also refers to interconnection and market integration in its objectives.  

European  Territorial  Cooperation  – 
'Interreg'  –  under  EU  cohesion  policy  provides  further 
opportunities for cross-border, transnational and interregional cooperation, including in the Energy 
Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation  and  Housing.  The  Netherlands  is  participating  in  the  partnerships  on  Air  Quality,  as 
coordinator  and  with  the  city  of  Utrecht  as  member,  Energy  Transition,  with  the  city  of  Tilburg  as 
member, Urban Mobility, with the city of Nijmegen as member, and Housing, as member.  

17  cities  of  the  Netherlands  participate  to  the  Covenant  of  Mayors,  and  have  sustainable  energy 
action plans. As seven of the largest cities in the Netherlands are signatories, these plans cover over 
3.5  million  people  and  20.6  %  of  the  population.  All  together,  these  municipalities  committed  to 
reduce by 2020 the GHG emissions by 33.8% (as compared to 1990 baseline).  

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

23 

 
 
 
Energy Union –The Netherlands 

In the Netherlands, by September 2016, 3 cities (covering 0.92 million inhabitants) have committed 
to  conduct  vulnerability  and  risk  assessment  and  develop  and  implement  adaptation  plans  in  the 
framework of the Covenant of Mayors for Climate and Energy. 

Cohesion policy and EU-supported clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground, including investment possibilities to implement energy policy objectives in the Netherlands 
which are complemented by national public and private co-financing, aiming at optimal leverage. It 
also  ensures  integrated  territorial  solutions  to  energy  and  climate  challenges,  supports  capacity 
building and provides technical assistance. 

Over 2014-2020, cohesion policy is investing some EUR 71 million in energy efficiency and renewable 
energy  improvements  in  public  and  residential  buildings  and  enterprises,  as  well  as  in  renewable 
energy  and  smart  electricity  distribution  grids  in  the  Netherlands.  Cohesion  policy  is  also  investing 
significantly in R&I and in SME competitiveness in the Netherlands, 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 is expected to increase further in line with the 
evolving content of the smart specialisation strategy. 

 (source: DG REGIO) 

These  investments  are  expected  to  contribute  to  around  1,000  households  with  improved  energy 
consumption  classification  and  around  70  MW  of  additional  capacity  of  renewable  energy 
production.  For  example,  the  project  partners  of  Oosterschelde  Tidal  Power,  including  SMEs  and 
knowledge institutions, are developing a power plant and test centre on the Eastern branch of the 
river ‘Scheldt’ to further explore the potential of tidal energy while at the same time providing power 
to 1,000 households. The contribution from the European Regional Development Fund (ERDF) 2014-
2020 amounts to EUR 745 000. 

As another example, households are increasingly turning in to producers of energy who could be able 
to  supply  their  locally  produced  energy  to  the  energy  market.  With  the  support  of  the  2007-2013 
European Regional Development Fund (ERDF) programme "North", Hanze University Groningen, the 

24 

020406080100120140Energy and Low-carbon R&ILow-carbon transport[Million EUR]NLERDF and Cohesion Funds allocation on energy, low-carbon transport and low-carbon R&I 1210Total alocation [mn EUR] 
 
 
Energy Union –The Netherlands 

University of Groningen, the Energy Research Centre of the Netherlands ECN, Gasunie Engineering & 
Technology, TNO-ICT, and Icopal BV under the project "Flexines" are jointly developing applications 
that will facilitate the entrance of households in this market and to help them make the right choices, 
as suppliers and as users. The contribution from the ERDF was EUR 448,000. 

Through  its  support  to  sustainable  transport  systems,  The  Connecting  Europe  Facility  (CEF)  also 
contributes  to the goals of the  Energy  Union. Following Dutch participation to the CEF –  Transport 
2014-2015  Calls,  the  Dutch  action  portfolio  comprises  38  signed  grant  agreements,  allocating  EUR 
260.3 million of actual CEF Transport Funding to Dutch beneficiaries (state-of-play February 2017)26. 
The  transport  mode  which  receives  the  highest  share  of  funding  is  rail  (40%  of  actual  funding); 
however, road has the highest number of actions.  

The  Netherlands  are  highly  investing  in  Rail  and  the  development  and  implementation  of  the 
European  Railway  Traffic  Management  System  (ERTMS).  The  highest  co-funding  is  allocated  to  the 
realisation of the new Theemsweg railway section in the Port of Rotterdam, which will remove the 
bottleneck in the rail freight access of main port Rotterdam towards three Core Network Corridors 
connecting the port with its European hinterland. The other studies within rail concern cross-border 
rail connections. The CEF Programme contributes to the improvement of the Dutch Road network by 
co-funding  the  development  of  new  technologies  and  innovation,  the  deployment  of  Intelligent 
Transport  Systems  and  Services  (ITS)  and  safe  and  secure  infrastructure.  In  terms  of  new 
technologies and innovation five multi-national actions are supported. These actions concern studies 
including  real-life  pilots  aiming  at  greening  road  freight  transport,  public  and  private  transport 
through  the  promotion  of  the  use  of  LNG,  hydrogen  and  electric-driven  vehicles.  The  Netherlands 
also demonstrate a strong commitment in promoting the use of LNG as a marine fuel, improving the 
environmental  performance  of  maritime  transport  via  the  deployment  of  new  technologies  on 
vessels and supporting compliance with Marpol Annex VI rules.27 

26   Note  that  European  Economic  Interest  Groups  and  International  Organisations  are  excluded  from  the 

analysis. 
27   Source: INEA 

25