The Dutch Parliament is debating a proposal to raise the country’s state debt to help lower energy bills for consumers and businesses. This proposal, led by the liberal-left party D’66, has gained significant support. It suggests transferring billions of euros to the state-owned energy company TenneT. The move is expected to lower energy costs across the country, as TenneT faces yearly investments worth billions of euros to strengthen and expand the national power grid.
D’66 politicians Ilana Rooderkerk and Hans Vijlbrief, who back the proposal, see it as a crucial step for future generations. They argue that increasing national debt is not a major concern, given the country’s current low debt levels.
The proposal comes after it became clear that investments in the national power grid are growing rapidly. These investments are expected to reach around EUR 195-200 billion, with projections indicating even higher costs in the future due to rising material and labor costs, as well as inflation. Currently, these investments are expected to increase consumer energy bills by EUR 600 per year.
What makes this proposal particularly noteworthy is that it comes from a party that has long championed renewable energy sources, such as solar and offshore wind power. D’66 previously argued that renewable energy would soon be “almost free.” However, despite this, the party is now suggesting that increasing energy bills is necessary to cover the rising costs of grid expansion, especially for offshore wind energy, which requires significant infrastructure investments—around EUR 88 billion just for connecting offshore wind farms to the onshore grid.
For years, Dutch lawmakers have largely ignored the financial strain that these energy investments will place on the country. The government, despite its right-wing leanings, has continued to push for an energy transition, believing that it would bring cheap, green electricity. Critics, however, argue that this “energy-transition fallacy”—the belief that the transition to renewable energy will not involve high costs or lead to affordable energy—has led to unrealistic expectations.
Recently, several major chemical companies, including LyondellBasel, have announced plans to leave the Netherlands, citing high energy prices as the main reason. Energy costs in the Netherlands are almost double those in Germany and triple those in France. Meanwhile, the country continues to export large amounts of electricity to neighboring countries at much lower prices than Dutch consumers pay. As a result, there is increasing pressure to create a “level playing field,” where all countries in Europe contribute fairly to the costs of grid expansion.
Ilana Rooderkerk, one of the proposal’s supporters, insists that raising national debt will not directly affect consumer energy bills. However, critics point out that the debt will eventually need to be repaid, which could result in higher taxes for citizens and businesses.
D’66 politicians, including Vijlbrief, argue that an annual investment of EUR 3 billion would reduce consumer energy bills by EUR 150 per year and cut grid tariffs by 50%, which would lower industrial energy costs by 15%. However, past efforts by D’66 to push for renewable energy solutions have been met with skepticism, as similar plans in the past have not lived up to expectations. Many question whether the proposed measures will lead to any real reduction in energy costs.
Silvio Erkens, a member of the liberal VVD party, recently pointed out the irony of the situation. He noted that the party that once advocated for higher energy bills to push industry toward greener solutions is now proposing the opposite: a plan to reduce energy costs through higher national debt.
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