Electricity sector in the Netherlands
The total electricity consumption of the Netherlands in 2021 was 117 terawatt-hours (TWh). The consumption grew from 7 TWh in 1950 by an average of 4.5% per year. In 2021, fossil fuels, such as natural gas and coal, accounted for about 62% of the total electricity produced. Renewable energy sources, such as biomass, wind power, and solar power, produce 38% of the total electricity. One nuclear plant in the Netherlands, in Borssele, is responsible for about 3% of total generation. The majority of the electricity, more than 75%, is produced centrally by thermal and nuclear units.
From 2005 to 2008, the Netherlands imported 13–15% of its electricity. After 2008, however, the share of imported electricity decreased drastically; in 2009, the Netherlands became a net exporter of electricity. Then, in 2011, the import balance increased again sharply. This development continued in 2012 and 2013. From 56.1 PJ in 2010 to almost twice the amount in 2015: 110.7 PJ. The cause of the increase in electricity imports has to do with the development of energy prices. The price of natural gas rose sharply in 2011 and 2012, while the price of coal rose again in 2011 but fell sharply in 2012 and 2013. Additionally, the supply of cheap electricity in neighboring countries rose relatively strongly, which made imports more attractive.
Before 1998, utility companies were allowed to own an electricity network and sell electricity simultaneously, which gave companies that owned the network unfair advantages over companies that were only active in retail sales of electricity. This prompted a restructuring of the electricity sector in the Netherlands with the introduction of the Electricity Act in 1998. This Act demanded the decoupling of utilities and electricity supply. The generation and retail of electricity in the Netherlands were liberalized. However, transmission and distribution are still centralized and operated by the system operator and utilities. The system operator and utilities have a monopoly position in the energy market. Therefore, these parties have to be regulated to guarantee rights of consumers and businesses in the electricity sector. The Authority for Consumers and Markets was founded in 2013.
The system operator, TenneT, is the only stakeholder responsible for managing the high-voltage grid (between 110 kV and 380 kV) in the Netherlands. Seven utility companies own the regional energy grids: Cogas Infra en Beheer, Enduris, Enexis, Liander, Stedin Netbeheer, and Westland Infra Netbeheer.