Energy in the Netherlands
The demand for electricity keeps growing apace - worldwide. According to projections by the International Energy Agency and the OECD (Organisation for Economic Co-operation and Development) demand in the Netherlands will also grow by 1 or 2 percent per annum up to the year 2020.
Over the past several years The Netherlands has become increasingly dependent on imports when it comes to electricity requirements. Imports now account for more than 20%. This was built up in a period when neighbouring countries had surpluses – which is now no longer the case.
Strong dependency on imports can endanger secure deliveries in times of shortages.
Share of imports in Dutch electricity supplies
Source: ECN
Origin of imported electricity
Source: ECN
Meanwhile, a substantial share of Dutch, and Western European, electricity generating stations is nearing the end of technical life-span. Part of this can be extended with substantial investments – but another section will have to be closed within the foreseeable future.
Age range Dutch electricity generating stations
This means that new installations will have to be built to secure electricity supplies. Moreover, building of new power stations must commence before long as new capacity is required around 2010 if problems around electricity supplies are to be avoided. Planning and construction of a new power plant takes between five and six years.
The policy to this end is contained in the Dutch government’s Energy Report 2005. In this report the government presents a clear-cut vision on coal: ‘Coal as fuel merits a fresh look – particularly with an eye to promoting security of supply.’
EU Policy
Dutch policy is partially based on EU policy – which in turn aims at reducing dependence on natural gas for electricity supplies. A recent study by the IEA suggests that the European Union has become strongly dependent on natural gas for energy supplies.
Natural gas stocks are limited. They largely come from politically volatile countries. Prices are unstable too. With this in mind the IEA calls for more variety in sources – naming coal as an alternative. Coal comes in greater bulk than natural gas. The worldwide spread is better and includes countries with a more stable political climate.