7 questions about climate-neutral energy system

The energy transition is placing heavy demands on the Dutch energy system. How do we keep traditional and new forms of energy in balance while ensuring that the supply of energy remains reliable and affordable? 

That’s an easy one to answer. It’s an energy system that does not contribute to climate change, meaning a system free of carbon emissions. The aim is to get to that point by no later than 2050. That will require an incredible amount of effort, however. We will need to switch to energy from renewable sources, such as green electricity, green gas and hydrogen, and to sustainable heating systems. And we will need to modify the infrastructure to prepare for this transition.

We need to find a smart way for all these forms and sources of energy to work together: only this way can we ensure a stable and flexible energy system and see that the supply of energy remains reliable and affordable. This requires far-reaching collaboration between network operators, public bodies and the market parties that are going to design, develop or manage parts of this new system. In preparation for this, Gasunie and TenneT, together with the regional network operators, have described various scenarios, opportunities and challenges for a climate-neutral energy system in the report 2030-2050 Integral Infrastructure Survey (II3050).

As we wean off fossil fuels, industry and transport in particular will switch to electricity or hydrogen, while in the built environment heat grids and green gas will play a greater role. It is expected that the demand for electricity will approximately double by 2050, but also that we will see a reduction in the total energy consumption thanks to measures like better insulation and more efficient use (and reuse) of heat.

Time. The new energy system needs to be up and running in less than thirty years. Thirty years is a short time for new electricity infrastructure to be built. Licensing procedures, for example, are very time consuming. Gasunie has an advantage in that regard: we can repurpose our existing pipeline network to transport hydrogen. In addition to saving time and space, this also saves a lot of money. What does take time, however, is the construction of gas buffers and hydrogen storage facilities. Add to this the immense need for technicians in particular. Network operators, energy producers and parties that provide services need to recruit new specialists and retrain employees.

Tens of billions of euros. Electricity grids on land and at sea will need to be expanded significantly. Gasunie is also assuming investments that will run into the billions of euros; when you consider the total costs for realising the new energy system, though, Gasunie’s costs are relatively insignificant. Moreover, these are long-term investments in a new, sustainable economy, an economy in which we aim to take a leading role. And because we can also export that innovative strength and knowledge, that yields something as well.

Investment costs can be kept in check through collaboration, firstly by making choices together and then by taking a joint approach. Smart decisions are needed to reduce the costs of electricity transmission, like by having sustainable electricity produced close to the source of electricity generation, for example. When using offshore wind, having a conversion site at sea or on the coast is cheaper than making use of one kilometres inland.

Gasunie will be focusing in the future on hydrogen and green gas, among other energy and heating-related matters. Hydrogen will become an important energy carrier and feedstock for industry and heavy transport (land, air, sea). This requires a hydrogen network with national coverage. Gasunie’s current natural gas network is already suitable for green gas; however, modifications are needed for the transmission of hydrogen, and new storage facilities will need to be built.

Gasunie is already fully engaged in design processes and network expansions. Plans are well underway for a heat grid in the province of Zuid Holland, carbon storage under the seabed, retraining and recruitment of staff, and the rollout of the national hydrogen network. We are bringing together the various stakeholders in all stages of the supply and value chain, from the business community to environmental organisations and from public and semi-public bodies to energy companies. Together we make decisions that transcend the interests of the individual parties and that of the Netherlands as a whole. Only this way can we shape the desired energy transition based on scenario explorations like II3050. And even though 2030 and 2050 may seem a long way off, there is an urgent need for change; the need for change is increasing and energy projects have long lead times.