After the fall of the cabinet and the upcoming elections, everything is open again. For example, the party that conducted the debate on nitrogen and the energy transition far too forcefully, D66 is taking a different tone through the new party leader Rob Jetten.
For example, he, who was called a 'climate pusher' a few years ago and considered it a nickname, wants to position his party as an organization that searches for practical solutions to social problems. That may be election talk, but it also puts the finger on the sore spot. As minister, Rob Jetten has set far too ambitious, unrealistic goals for his energy and climate policy. Which are at the expense of our prosperity, the economy and the less fortunate in our society. But now almost our entire economy runs on electricity and our country is accelerating its transition away from gas and the Groningen gas field is closing.
In that respect, the elections do not come too late. A new cabinet can set realistic goals and put a brake on the energy transition. Because there is a gaping gap between the current objectives and the practical feasibility for the construction of millions of charging stations for battery cars, heat pumps and new heavier cables in power masts and offshore wind farms that must supply clean hydrogen to replace polluting coal in steel production.
Pink elephant in the room
The bottom line is that Jetten's policy wants to achieve a transition far too quickly, without all underlying conditions for success being present. The pink elephant in the room is that the current power grid is already overloaded. The operator of our high-voltage grid TenneT and local distribution companies such as Liander and Enexis are already warning of possible power outages from 2030. While there are already around 6000 companies, mostly new wind and solar parks, on the waiting list to be connected to our crowded net. And this for an electricity grid that until recently was among the best and most reliable in the world.
The solution is obvious. Investing in the construction of additional capacity on the power grid. It will just take at least four to five years until that capacity is available. The process can be accelerated by removing all hurdles such as slow permitting and nitrogen restrictions that halt construction. There is also a lack of qualified personnel, which means that many new technicians must first be trained. Jetten has a package ready for this. .
Huge investments are in danger of being postponed
There is another danger looming. Decisions on the enormous investments required to expand the power grid are in danger of being postponed until a new cabinet has taken office. Given the current political situation, this could easily take a year or even longer. We don't have that time, so everything must be done to ensure that the construction of new power cables continues.
Only when there is sufficient capacity again can the energy transition be continued. Until then, we have to slam on the brakes. If the entire transition does not achieve the interim goals, there will certainly be no man left over. The earth will not end and there will be room for alternatives such as nuclear energy. This allows us to prevent energy poverty and irreversible and unnecessary economic damage. In short, social security for citizens and companies, the theme of the current elections.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.