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#1. Tackling grid congestion is a top priority
Addressing grid congestion has the highest priority, with a proposed ‘Crisis Law’ to accelerate permit procedures and intervene when construction stalls. Available grid capacity will be better utilised through incentives in grid tariffs, flex contracts and energy hubs. We are reminded daily by our clients that grid congestion is one of the most serious issues in running their businesses and can only underline the need for adequate solutions to tackle this to further unlock market potential.
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#2. Broad horizon on nuclear energy
Besides the continuing work on building at least four new nuclear power plants, the agreement aims to stimulate the development of small modular reactors (SMRs). Overall, the nuclear cluster in the Netherlands will be strengthened, the SMR programme accelerated and maritime nuclear innovations supported, to secure supply in the energy mix.
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#3. CCS infrastructure and carbon management supporting the chemical industry
The coalition intends to invest in CO2 storage (CCS) and use (CCU) in the North Sea through state participations. National innovations for negative emissions/carbon removal are stimulated and internationally work begins on establishing a knowledge cluster for ‘Carbon Management’. For the energy-intensive port and industrial clusters in Chemelot, Rotterdam-Moerdijk, the North Sea Canal Area, the Northern Netherlands and Zeeland-West Brabant, a national spatial-economic strategy will be developed to cluster heavy industrial activities.
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#4. Continued government support for heat and wind energy
Investing in offshore wind energy remains a priority, with the intention of accelerating this through Contracts for Difference aimed at achieving 40 GW capacity. The coalition further remains fully committed to district heating networks (warmtenetten), also to reduce grid congestion, and willing to (partially) take over private heating companies through state participation. From 2029 onwards, the rollout of hybrid smart heat pumps will be stimulated and standardised in locations where a district heating network is not suitable.
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#5. Hydrogen and green chemistry receive structural support
Investment continues in green and blue hydrogen production and supply. In the energy transition, blue hydrogen (combined with CCS) can play a crucial role in scaling up the Dutch hydrogen chain, contingent on clear and stable conditions being provided. The coalition intends to build out the Netherlands' strong position in clean manufacturing, with opportunities for circular building materials, green chemistry, biobased plastics, hydrogen and in the maritime sector.
Want to know more?
Market and government parties, especially energy and industry players, should prepare themselves for these wide-ranging developments. Our Energy, Transition and Infrastructure team looks forward to joining them with unparalleled expertise and knowhow and would like to connect and collaborate. Please contact us to discuss how this coalition agreement affects your sector and business operations and how we can join forces.
