The Netherlands has emerged as a global leader in energy transition, driven by ambitious climate goals and strong political commitment. With the aim of reducing greenhouse gas (GHG) emissions by 55% by 2030 compared to 1990 levels, the country is rapidly progressing towards decarbonising its economy, particularly through renewable energy sources such as solar and offshore wind. However, structural challenges remain, including grid congestion and a historical reliance on natural gas.
A shift towards renewable energy
Since the adoption of the National Climate Agreement in 2019, the Netherlands has experienced remarkable growth in renewable energy. By 2022, these sources accounted for 40% of total electricity generation, a significant increase from 15% in 2017. Offshore wind power is a cornerstone of this progress, with targets to reach 35 GW of installed capacity by 2035 and 70 GW by 2050, according to the national energy system plan.

Source: Internacional Energy Agency
The rise of solar power is equally noteworthy. Policies such as the SDE++ scheme and net metering regulations have enabled the Netherlands to become a global leader in photovoltaic deployment, with more than 35% of its total capacity coming from this technology in 2022. «The development of solar energy in the Netherlands is a global success story, even under less favourable climatic conditions,» the International Energy Agency (IEA) report highlights.
Additionally, the decentralisation of solar energy has allowed both businesses and households to actively participate in the energy transition—a model that other nations could emulate to accelerate the adoption of clean energy.

Source: International Energy Agency
The challenge of grid congestion
The rapid expansion of renewable generation has highlighted a critical issue: insufficient grid capacity to handle the growing demand and variability of renewable sources. The national grid congestion action programme is implementing solutions such as energy storage and more attractive connection tariffs for strategically located batteries.
Adding to this is the potential of electric vehicle (EV) charging infrastructure, which, if managed properly, could act as a resource to stabilise the grid through smart charging systems. «Aligning grid expansion with the pace of wind and solar development is essential to ensure energy security and maximise investments,» warns the IEA report.
Transitioning from natural gas: A historic challenge
With a long-standing reliance on natural gas for heating and electricity generation, the Netherlands faces a unique challenge in its energy transition. In the residential sector, efforts are focused on replacing gas boilers with heat pumps and expanding district heating systems. The goal is to reduce dependence on gas, which still accounts for 84% of energy consumption for heating.
However, recent reductions in subsidies for heat pumps have created uncertainty in the market. The IEA notes, «The shift to more sustainable heating systems must be accompanied by consistent policies that provide certainty to consumers and investors.»

Source: International Energy Agency
Hydrogen and nuclear energy are on the horizon
Green hydrogen is emerging as another key component of the country’s energy strategy. Leveraging its energy trading infrastructure, the Netherlands aims to become a European hub for clean hydrogen, including both production and importation, supported by its offshore wind resources.
Nuclear energy is also making a comeback, with plans to construct four new reactors to complement the growing renewable capacity. «Political stability and a strong public mandate will be crucial to integrating nuclear energy into a decarbonised system,» the IEA emphasises.
Long-term policies and investments
The climate fund and the SDE++ scheme have been instrumental in financing the energy transition. The climate fund, with a budget of €35 billion through 2030, prioritises innovative technologies such as hydrogen and renewables. Meanwhile, the SDE++ has supported cost-effective solutions to reduce emissions, although it faces budget cuts from 2026 onwards.
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