Energy Transition Monitor: the current state of the energy transition

Rotterdam, 8 September 2024

Today Deloitte publishes the Energy Transition Monitor (ETM) during Recharge Earth. Which is the annual conference on the energy transition that will be held in Ahoy on 6 and 7 September. The ETM provides a comprehensive picture of the current state of the energy transition in the Netherlands. The progress of the transition since 1990 has been examined. For example, which industrial gases have actually been reduced. It appears that emissions of industrial greenhouse gases have fallen with 44 per cent, but those of CO2 have hardly decreased, mainly due to production reduction; The real transition to sustainable production has yet to begin.

The energy transition is perhaps the greatest challenge of our time. The Netherlands has made good progress so far. But in order to achieve the emission targets of 2030 and beyond, fundamental choices must be made. A successful energy transition depends on making the right decisions. However, it is clear that the pace must be increased.

In order to achieve the targets of the climate agreement in the Netherlands by 2030, 570 charging stations must be installed per day. In addition, we would have to electrify the heating of 600 houses per day and build 1 wind turbine every other day until 2050.

The Deloitte Energy Transition Monitor will be published today, approximately halfway through the transition timescale: from 1990, the common reference year, to 2050, when net zero emissions must be reached. The consequences of climate change worldwide are becoming increasingly clear. This is the time to determine the progress made so far. After which we will look at what needs to be done to make the Netherlands more sustainable.

Key findings from the report

1. The industrial sector has reduced its emissions the most. But this has mainly been achieved by switching back production under pressure from high energy prices in recent years.
2. National energy-related emissions were reduced by 32% in 2022 (compared to 1990). However, this does not take into account emissions from international aviation and delivery, as well as those from imported products.
3. 15% of the energy used in the Netherlands comes from renewable energy sources, mainly biomass. Clean electricity generation from wind and solar energy is showing strong growth
4. Electrification offers the greatest potential for increasing the use of renewable energy sources, but progress is limited. Electric vehicles represent only 1.5% of the energy consumption of the mobility sector.
5. On average, one in three households now uses at least one clean energy technology; a solar panel, electric car or heat pump and this percentage is growing quickly.
6. Although public sentiment is becoming more polarised, the Dutch energy transition has seen real successes, such as the highest adoption of solar panels in the EU and the supply of EV charging stations per person. In addition, 40% of the electricity in the Netherlands is now generated from renewable energy sources.

The Netherlands has excellent potential for offshore wind energy, a long-standing industrial sector and a leading education system, making us as a country well positioned to serve as a global blueprint for a successful energy transition.

"The Netherlands is facing a number of important and necessary choices," says Oscar Kraan, strategy manager at Deloitte. "Are we going to de-industrialise in the Netherlands or are we really going to become more sustainable? Government and the business community really need to map out the way forward together and involve the general public in this. Nobody really wants wind turbines in their backyard, but the energy transition affects us all."

The pace of energy transition must be increased

However, the current pace of progress is too slow to meet the targets for 2030 and beyond. The energy transition must therefore accelerate and there are difficult decisions ahead that we will discuss in more detail in this report.

Public sentiment, combined with the facts presented in the Energy Transition Monitor, are a starting to point to advance the discussion, collaboration and decision-making that will lead us to a successful energy transition.