Environment

Netherlands Warned of Power Shortages After 2030

The Netherlands could have considerable electricity shortages after 2030 unless considerable investment is made, according to research from consultancy Compass Lexecon for Energie Nederland, to keep gas-fired power plants running. For the next five years, the supply is likely to meet demand even during the calm or cloudy periods, but the picture deteriorates further out. The remaining three coal-fired plants will be closed by 2029, gas plants are not making much profit anymore as even more wind and solar capacity is deployed, and electricity use is rising alongside heat pumps and electric vehicles.

Potential outages and increasing costs
The report cautioned that by 2033, the Netherlands could see 15 to 18 hours of outages each year, far worse than the acceptable limit of four hours. Outages could lead to uncontrolled blackouts and peaks in electricity pricing. Currently, supply reliability sits at 99.99%. Cora van Nieuwenhuizen, chair of Energie Nederland, said the report was a wake-up call and said it was not good that operators are putting off necessary maintenance because they are not making any money by running gas plants.

Options to ensure supply
Compass Lexecon explained that a capacity mechanism could mitigate the risk by making payments to operators to keep plants on standby, to contribute to supply if renewables do not generate sufficient energy. It could also support new investments in storage or power plants. With early action, save nearly 2.5 to 3 billion euros a year by reducing prices and reducing outage risk, said the researchers.