Electricity Generation Policy in the Netherlands

For a long time the electricity policy in The Netherlands was based mainly upon two considerations: (1) that the capacity should be sufficient to meet the demand, even under extreme conditions; and (2) that supply should be reliable, which means that interruptions must be avoided.

After the oil crisis of 1973–74 other aspects became important, like the price of the fuels and the availability of a ‘strategic reserve’. Due to those considerations no longer an almost exclusive use was made of domestic fuels (originally coal, later natural gas). More or less at the same time the social attitude towards electricity supply (e.g. opposition to nuclear energy, promotion of renewable energy sources) started to have a considerable influence on the political decision-makers.

Due to these complex changes no well-defined electricity policy has existed in the recent past. Recent formulations of policy (which stress the importance of low prices and of diversification) are hampered in their execution by decreasing demand, thus preventing the building of new plants which would lead to a situation that is more in accordance with the present policy.