New legislation on its way
Two legislative proposals were presented to the Dutch House of Representatives in 2023 that are important for the energy transition. The Municipal Instruments Heat Transition Act gives municipalities the possibility to impose local regulations for the transition from natural gas to renewable energy. In this proposal, the municipality itself can determine whether districts must be switched off from gas at a certain time. It does not appear to be realistic that the act will be implemented before 2025.
The second legislative proposal concerns the Energy Act, which is set to replace the Electricity Act 1998 and the Gas Act. The Energy Act brings up to date the present legal framework for gas and electricity grids and provides a framework for new developments. These frameworks will be further elaborated in 2024. The Energy Act is expected to take effect as from 1 July 2025.
Finally, a new Heating Act, the Collective Heating Supply Act [Wet collectieve warmtevoorziening (Wcw)] is also being introduced. The Wcw has been submitted to the Dutch Council of State for advice. This act pertains to the district heating grids in the Netherlands of which more than 50% must be in public hands. The price that residents pay when they are connected to a district heating grid is now linked to the price of natural gas. The new act states that the tariffs must be based on the actual costs. The new act should also promote the installation of district heating grids and give the government more control over the installation of district heating grids.
Via our participation in various permanent consultative bodies, we are discussing these topics with the Ministry of Economic Affairs and Climate Policy and other relevant ministries, and we are contributing our knowledge and expertise. In addition, we also form coalitions with other stakeholders for a number of topics, such as the Wcw. We join forces to strengthen our message to politicians and the government. We also participate, for example, in technical briefings in the Dutch House of Representatives to explain our view on new legislation.
Nitrogen: waiting for new legislation
A lot has changed with regard to nitrogen policy since 2022. We are waiting for new legislation that must provide room for the energy projects of grid operators. With electrification, we actually avoid nitrogen emissions from the burning of fossil fuels. Therefore, we are part of the solution, not part of the problem. In an opinion article in the summer of 2023 in the Dutch financial newspaper Het Financieele Dagblad, we advocated a nitrogen exemption for the electricity grid together with the other grid operators as otherwise the energy transition will come to a halt. This did result in public attention; however, unfortunately, this has not yet led to clarity in 2023 about a possible change in nitrogen legislation. Therefore, we must comply with the existing laws and regulations, and we have to take the impact of nitrogen emissions into account. Together with ministries and provinces, we are examining options and providing advice to governments on granting permission for energy infrastructure projects.