TenneT Warns of Rising Electricity Shortage Risks in the Netherlands by 2030
Significant Increase in Electricity Supply Risks and Urgent Need for Government Action
Projected Shortages and Reliability Concerns
AMSTERDAM, June 10 (Reuters) - Risks to the security of electricity supply in the Netherlands will rise significantly from 2030, with expected shortages breaching the Dutch reliability standard, grid operator TenneT said on Wednesday, urging government action.
Expected Shortage Hours
• TenneT said expected shortage hours could rise to 37-46 per year by 2035, compared with the Dutch standard of a maximum average of four hours.
Drivers of Deterioration
• The grid operator said the deterioration was mainly driven by electrification increasing demand as flexible power capacity from gas and coal plants declines in the Netherlands and neighbouring countries.
Renewable Energy and Flexibility Limitations
• It added that supply from solar, wind and batteries and demand-side flexibility would grow, but would not fully offset rising demand and a drop in thermal generation, especially during prolonged shortages.
Dependence on Imports and Capacity Needs
Rising Reliance on Electricity Imports
• The Netherlands' reliance on electricity imports during shortage periods could rise from around 1 gigawatt in 2028 to almost 9 gigawatts in 2035, TenneT said.
Additional Production Capacity Requirements
• Additional Dutch production capacity needed in 2030 appeared limited at around 0.4 GW, but could rise to 3.7 GW if neighbouring countries fail to take measures to secure their own electricity supply, TenneT said.
Policy Recommendations
Implementation of a Capacity Mechanism
• TenneT advised the economy ministry to start implementing a capacity mechanism - a scheme to pay providers of backup power, or allow for demand cuts when supply is tight - from the winter of 2029-2030.
(Reporting by Hugo Lhomedet; Editing by Jan Harvey)
