The Netherlands is on track to become carbon neutral

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As a country that is home to one of the most sustainable cities and a responsible country overall, the Netherlands is on track to phase out the use of coal-fired energy by 2030, according to Global data. The country is expected to reduce its coal-fired power capacity to 3.18 GW by 2025 before the source is completely eliminated.

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The leading data and analytics company highlighted this information in a report, which shows the effects of the Dutch government‘s strategy for decarbonization, since it imposes a tax on coal resources.

The Dutch government‘s ban on coal-fired power generation follows its efforts to reduce greenhouse gas emissions by 49% by the end of 2030, compared to 1990 levels”, declared Rohit Ravetkar, Power Analyst at GlobalData. “The government’s announced carbon price floor will discourage the use of fossil fuels for power generation. By heavily penalizing greenhouse gas emitters, the carbon price floor will lead to increased adoption of renewable energies. The carbon price floor was introduced in the UK in 2013 and has resulted in significant growth for the renewable energy sector. A similar result is expected in the Netherlands ”.

GlobalData’s latest report, Netherlands Power Market Outlook to 2030, shows trends in the Dutch energy market as it observes the increase in adoption of renewable energy. The data specifically shows that thermal power generation will decline in the coming years, which held 70.4% market share in 2020.

“One of the requirements of the government ban is that coal-fired power plants must switch to [alternative] fuels such as sustainable bioenergy. Owners of coal-fired power plants are expected to spend significant sums on upgrading their plants to switch to bioenergy. This will result in an increase in bioelectricity capacity from 1.21 GW in 2020 to 3.11 GW in 2030, ”says Ravetkar.

He also adds: “Over the past decade, the Dutch government has encouraged power companies to build coal-fired power plants in the country. A few of the coal-fired plants were commissioned in 2015, with utilities spending more than $ 3 billion to build these plants. Today, the utilities are unhappy with the compensation offered by the Dutch government for the closure of their coal plants, as this will massively affect their profits ”.

The Dutch government also plans to phase out the use of nuclear energy, three years after the decarbonisation deadline. The country currently has a nuclear reactor with a capacity of 482 MW, owned by Pzem Energy BV and RWE AG, which is expected to be decommissioned by 2033.

Ravetkar says: “The rapid phase-out of coal and nuclear power – two main sources of electricity generation – in such a short time frame can reduce the reliability of the country’s electricity supply. The country needs to effectively balance its retiring power generation fleet with the appropriate baseload capacity to continue producing uninterrupted power in the future. It is very likely that renewable energy sources, in particular solar photovoltaic and onshore wind power, will fill the capacity gap caused by the gradual phasing out of coal and nuclear energy ”.

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