Affordable energy is a key requirement for a strong Netherlands
News article
Energy forms the foundation of our society and economy. The energy transition requires not only more sustainable generation, but also an energy system that simultaneously invests in infrastructure, flexibility, efficiency, and security of supply. This was one of the key points raised by Peter Wennink this morning.
This morning, Peter Wennink presented the report “De route naar toekomstige welvaart. Een sterk Nederland in een relevant Europa". His message is clear: the Netherlands must act now to manage rising costs for healthcare, pensions, defence, and the energy transition, in order to safeguard our prosperity.
Keep strategic energy-intensive industries in the Netherlands
We are witnessing energy-intensive industries leaving the Netherlands. As a result, CO₂ emissions shift to other countries, sometimes just across the border, while we in the Netherlands lose jobs and our strategic relevance. In such cases, others set the terms and prices for our access to technology and raw materials. Refining, steel, and chemicals, for example, are at the heart of various high-value industrial chains in the Netherlands, and dependencies in these sectors pose risks for our energy supply and defence capabilities.
Wennink writes in his report: ‘Industry and energy suppliers often face a chicken-and-egg problem when planning investments: because industry is uncertain about the energy source, and energy suppliers are unsure about customers, we are innovating too little in the field of blue and green hydrogen.’
The report published this week by the Netherlands Court of Audit also described the challenges in kickstarting the hydrogen market. It specifically addressed the efficiency and effectiveness of our hydrogen network. The report confirms what we experience in practice: projects of this scale and level of innovation are new, complex, and challenging. However, it also demonstrates that the usefulness and necessity of hydrogen are beyond question.
Affordable and reliable energy as a prerequisite for the economy
Wennink identifies four prerequisites for investment and growth in his report. One of these is: ensure affordable and reliable energy. Take a long-term approach to a robust energy mix with sufficient security of supply for industry and other strategic clusters.
At Gasunie, we also advocate for this energy mix. That is why we are actively building the national hydrogen network and cross-border connections, a transport network for the capture and storage of CO₂ from industry, and heat transport. At the same time, natural gas will remain important in the coming years to ensure energy security, including electricity generation by gas-fired power plants when the sun does not shine and the wind does not blow. Only with a mix of energy sources can we maintain our prosperity in the Netherlands.
