Distributed energy market in the Netherlands

The Netherlands is a European leader in renewable energy, the circular economy, and environmental innovation. The country aims to reach 70% renewable energy by 2030 and 95% emissions reduction by 2050.

The Netherlands is experiencing severe electricity grid congestion with reports of over 12,000 companies waiting for new or expanded electricity connections. To manage this demand, grid operators are using dynamic pricing, flexible contracts, and other tools to reduce peak-time pressure.  
 
As a result, the Dutch government has launched the National Grid Congestion Action Program with targeted actions to reduce bottlenecks. 

• Highly competitive market with over two thousand active energy companies 
• Major changes to the Dutch Energy Act, effective January 2026 which introduces system management instead of grid management 
• New rules around dynamic pricing and energy communities. 
• Dutch grid operators believe that the complexity and sophistication of the European grid suggests that North American companies will not be able to provide solutions 

The Canada-EU Comprehensive Economic and Trade Agreement (CETA) provides tariff-free access to the European Union (EU).

The Netherlands has well-established trading links with Canada and excellent connections across Europe by road, rail, and barge from its main ports. This is supported by a large logistics sector.

The Netherlands plans to install 21 gigawatts (GW) of offshore wind capacity by 2030 and is seeking to scale up offshore floating solar. 

The current energy infrastructure needs to be adapted and upgraded, including around 50,000 new transformer stations, additional high voltage cables, and other initiatives.

The Netherlands may have challenges meeting its 2030 renewable energy targets as Dutch investors in the sector are deterred by the increasing cost of infrastructure and the reduced price of electricity.

• New offshore wind tenders are planned between 2025 to 2027
• Battery Energy Storage Systems are scaling up across the country to address grid challenges.
• Grid operators are investing in AI-driven forecasting, digital twins, and energy hubs to optimize grid use
• There is a growth expected in integrated solar solutions in agriculture, buildings and floating locations, combining PV with rooftops, heat pumps and energy management systems.

The Netherlands is struggling with grid capacity and connectivity issues, while aiming to increase the use of renewable energy sources and change user’s power consumption habits. The government’s new Energy Act will aim to ease grid problems over the coming years and seek to encourage smaller projects where energy is created and used locally by communities.  

In it’s aim for net-zero emissions by 2050, the Netherlands has an ambitious plan for:

• additional offshore wind and solar parks
• (green) hydrogen projects and pipeline transportation
• geothermal projects
• potential nuclear installations

For more information on the distributed energy market in the Netherlands please contact hague-td@international.gc.ca.