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2024 Oil Round: Growing opportunities in oil, gas sector

Michael Simire
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2024 Oil Round: Growing opportunities in oil, gas sector

The 2024 oil licensing bid round marks a major moment for Nigerian oil and gas sector.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) awarded 25 oil exploration and production licences to a diverse group of bidders, which include international majors and indigenous companies.

Gbenga Komolafe
Gbenga Komolafe, the Chief Executive of NUPRC

This development signals a renewed focus on revitalising the sector, attracting foreign investment and boosting energy security.

The awarded blocks are expected to unlock billions of dollars in investment, increase oil reserves and boost production capacity.

This not only promises economic growth and stability but also demonstrates continued global interest in Nigeria’s oil resources.

As the winners embark on their exploration journey, the success of this initiative hinges on the effective implementation of policies and support structures to guide these new ventures toward success.

Mr. Gbenga Komolafe, the Commission Chief Executive of NUPRC, said, “The bid round is in line with the government’s commitment to transforming the upstream oil sector.

“This development would bolster Nigeria’s oil production capacity and enhance its competitiveness on the global stage.”

Komolafe also highlighted that the awards demonstrate the continued global interest in Nigeria’s oil resources in spite of the global push for renewable energy.

Komolafe noted, “the successful bidders would help to increase Nigeria’s oil production output while ensuring that the country retains its position as one of the leading oil producers in Africa.”

According to him, this will also boost government revenues, which are crucial for national development.

“The future of the Nigerian oil and gas industry must be both prosperous and sustainable.

“We are committed to ensuring that operators align with the country’s environmental policies while also contributing to economic growth,” he said.

Industry experts have also lauded the development, pointing out that the bid round offers an opportunity for the country to reverse the decline in its crude oil output.

This is a consistent fall in recent years due to ageing fields and a lack of fresh investments.

Mr Mike Osatuyi, former Operational Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), said that the awarding of the 25 oil blocks would create thousands of direct and indirect jobs across the country.

“The new exploration activities will require skilled labour, technical expertise, and support services, all of which will positively impact Nigeria’s economy, especially in regions where the blocks are located.

“In addition, the government anticipates increased revenue generation through taxes, royalties, and dividends from the exploration and production activities of the awarded companies.

“The revenue is expected to be reinvested in critical infrastructure, education, and healthcare, contributing to long-term socio-economic development,” Osatuyi stated.

Similarly, Mr Rabiu Bello, an oil and gas expert, said that if the winners were industry players with technical and financial capabilities to explore and develop the assets in the shortest possible time, then Nigeria would benefit from increased production and foreign exchange revenues

According to him, these are needed to stabilise the currency and service foreign debt.

On his part, Alhaji Debo Ahmed, former President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that production had been below capacity.

“Nigeria’s oil production has been hovering around 1.3 million barrels per day (bpd), well below its potential capacity,” he said.

Ahmed stressed the importance of attracting both local and foreign investments.

He noted that a mix of indigenous and foreign firms could bring the needed capital, technology and technical expertise required for oil exploration and production.

Mr. Williams Akporeha, President of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), advised that the government must not only award oil blocs but also ensure that the winning companies immediately commence development and exploration activities.

He emphasised that this approach is crucial for effectively deepening growth within the oil and gas industry.

Meanwhile, local companies have also commended the bid round, saying the development would allow them to demonstrate their capacity in the exploration and production of the nation’s rich oil resources.

By Yusuf Yunus

Los Angeles wildfire death toll hits 24

Michael Simire
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Los Angeles wildfire death toll hits 24

No fewer than 24 people have died as major wildfires continue to ravage the Los Angeles area in the U.S. state of California, the city’s medical examiner said on Sunday, January 12, 2025.

California wildfires
California wildfires

The medical examiner said that 16 of the fatalities are related to the Eaton Fire near Pasadena, and eight others to the Palisades Fire in the Pacific Palisades district.

There have been several major fires in the region since Tuesday, but these two are the most severe.

According to the officials, the death toll may continue to rise, since it may take days before emergency services can safely access all areas impacted by the fires.

Firefighters were preparing for gusts to pick up again in the coming days, exacerbating what officials said could be one of the worst natural disasters in U.S. history.

The U.S. weather service forecast wind speeds of up to 110 kilometres per hour for Sunday, which combined with dry vegetation, favours the rapid and unpredictable spread of both existing and new fires.

The California Department of Forestry and Fire Protection (Cal Fire) warned of critical fire weather through to Wednesday.

“Life-threatening winds and dangerously low humidity are forecast for much of Southern California from Ventura to San Diego creating a significant risk of rapid fire spread,’’ the department wrote on X.

It warned the wind would increase fire activity and urged people to avoid mowing their lawns and parking their vehicles on dry grass and to ensure all campfires were extinguished.

According to Cal Fire officials, some 12,300 buildings have been destroyed or damaged.

Since Tuesday, almost 163 square kilometres of land have gone up in flames, a space almost the size of Washington D.C.

California Governor, Gavin Newsom, speaking to broadcaster NBC, said the wildfires would be the worst natural disaster in U.S. history, in terms of the scale and scope, as well as the costs it has caused.

Newsom went on to sign an executive order to temporarily suspend environmental regulations for destroyed homes and businesses.

“Just issued an Executive Order that will allow victims of the SoCal fires to not get caught up in bureaucratic red tape and quickly rebuild their homes,’’ he wrote on X.

According to a preliminary estimate by the private U.S. weather service AccuWeather, the fires have caused more damages of more than 135 billion dollars.

Arnold Schwarzenegger was among the Hollywood actors living in and around areas impacted by the fires.

“Don’t worry about me, or my animals, and certainly not my house,’’ the film star and former governor of California said, asking fans to think instead of the heroic firefighters.

As the fires rage on, attention has increasingly turned to the people fighting them.

Among the fire fighters are several hundred prisoners being paid a maximum of $10 a day for gruelling work trying to contain the blaze.

Californian authorities said the prisoners had undergone several days of training and are working voluntarily on removing flammable material and creating so-called firebreaks, or gaps in vegetation to stop the spread of fire.

They were given another $1 per hour for emergency work.

Each day spent working as a rescue worker shortens the prison sentence by two days.

Only inmates who are serving a prison sentence of a maximum of eight years and are not serving time for crimes such as rape or arson are deployed as helpers.

Table water producers back Lagos ban on single-use plastics

Michael Simire
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Table water producers back Lagos ban on single-use plastics

The Association for Table Water Producers (ATWAP) of Nigeria has backed the Lagos State Government ban on single-use plastics, including sachet water.

Table water
Table water

National President of ATWAP, Dr Clementina Ativie, who said this in an interview on Monday, January 13, 2025, in Lagos, noted that the association would work with the state government, through the Lagos State Plastic Waste Management Scheme, to ensure seamless implementation of the policy.

She said the plastic waste management scheme was targeted at reducing plastic waste while promoting recycling.

According to her, the association is committed to environmental sustainability and responsible practices.

“We acknowledge the concerns surrounding single-use plastics and their impact on the environment.

“In Lagos State, we have collaborated closely with the Ministry of Environment and Water Resources to develop sustainable solutions.

“Notably, we have made significant strides in the resolution of the ban through the Lagos State Plastic Waste Management Fund Scheme, which aims to reduce plastic waste and promote recycling.

“Our association has also implemented Extended Producers Responsibilities, encouraging manufacturers to take responsibility for the waste generated by their products.

“This approach has helped our members reduce their environmental footprint while ensuring their businesses remain sustainable,” Ativie said.

She said the Plastic Waste Management Fund Scheme Committee would bring together stakeholders from the government, private sector and the civil society to address plastic waste management challenges.

“As a key member of this committee, ATWAP is dedicated to protecting and sustaining our members’ businesses while meeting government goals on environmental protection and public needs for safe water.

“Regarding the proposed ban, the government has engaged with single-use plastic users, considering the potential impact on our members’ businesses and public access to safe water.

“This has led to the establishment of the Lagos State Plastic Waste Management Scheme, which will be inaugurated soon.

The Lagos State Government, through the Ministry of Environment and Water Resources, had committed to total ban on single-use plastics before the end of January.

The announcement had elicited divergent reactions from sachet water producers, nylon producers and various stakeholders in the single-use plastic value chain.

By Fabian Ekeruche

Kano inaugurates waste management initiative

Michael Simire
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Kano inaugurates waste management initiative

Kano State Government has inaugurated a waste management and refuse disposal initiative aimed at transforming the state into a cleaner and more environmental-friendly city.

Governor Abba Kabir Yusuf
Governor Abba Kabir Yusuf of Kano State

Inaugurating the initiative on Monday, January 13, 2025, along IBB Way within Kano metropolis, the Commissioner for Environment and Climate Change, Dr Dahiru Hashim, said that only a multi-dimensional approach would address the state’s waste management challenges.

According to him, the state has recognised the effectiveness of a robust waste management system in maintaining the well-being of its citizens.

He said that the Ministry of Environment and Climate Change, in collaboration with the transportation and commerce ministries, unveiled the initiative aimed at addressing the waste management challenges across the state.

“A major aspect of the initiative is the introduction of waste disposal bins in commercial vehicles, including buses and tricycles that operate within the state.

“The initiative is designed to encourage commuters to dispose of their waste responsibly while on the move.

“Additionally, the Ministry of Environment and Climate Change will install waste disposal bins at motor parks, bus stops, and along major streets across Kano State.

“This move is aimed at promoting responsible waste disposal by road users and commuters.

“The initiative is expected to reduce littering on the streets and ensure that the state’s roads remain clean and presentable,” he said.

Hashim stressed the importance of public participation in achieving the initiative’s goals.

He called on residents, transport operators, market traders and industrialists to adopt responsible waste disposal habits, and actively contribute in order to maintain a clean environment.

The commissioner also highlighted the partnership with the Ministry of Commerce to maintain cleanliness in markets and industrial areas.

He said the ministry would also establish designated waste disposal points in various business districts.

The commissioner emphasised the commitment of Gov. Abba Yusuf of Kano State in ensuring that all businesses in the state contributed to maintaining a clean and healthy environment.

“Another key aspect of this initiative is the reintroduction of street sweepers across the state.

“I am pleased to announce that, within a week of our resumption at the ministry, we have begun paying off the backlog of salaries owed to street sweepers.

“These sweepers would be strategically deployed to key areas in Kano city, including major roads, marketplaces and public spaces.

“They would help to ensure that Kano State remains one of the cleanest in Nigeria,” he said.

Some traders and market leaders, who spoke on the new initiative, expressed gratitude to the state government for “the robust and brilliant initiative.”

They urged market traders to complement government efforts by always keeping the market environment clean.

By Muhammad Nur Tijani

African leaders pledge new strategy to fight hunger, boost farming

Michael Simire
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African leaders pledge new strategy to fight hunger, boost farming

African heads of state gathered in Kampala, Uganda on Sunday, January 12, 2025, to adopt new agricultural policies aimed at transforming the continent’s food systems, with Kenyan President William Ruto calling for increased investment in farming infrastructure and technology.

William Ruto
President William Ruto of Kenya

The extraordinary African Union summit marked the end of the Malabo Declaration on agriculture, replacing it with the new Kampala Declaration that commits member states to modernising their agricultural sectors.

“This is our moment to commit to a bold and transformative agenda for Africa’s food systems,” Ruto told the assembled leaders.

“Together, we can build a robust and enduring foundation for sustainable agriculture.”

The summit focused on implementing the Comprehensive Africa Agriculture Development Programme (CAADP), which requires member states to allocate 10% of their national budgets to agriculture and achieve 6% annual growth in the sector.

Ugandan President Yoweri Museveni highlighted the need to shift from subsistence to commercial farming.

“Uganda has managed to transform its agriculture into a money economy, thus reducing poverty levels,” he said, while proposing to harness the River Congo’s water resources for irrigation in drier regions.

Ruto reported that Kenya has exceeded the AU’s irrigation development targets by 147% since the previous declaration.

He committed to incorporating the new Kampala Declaration into Kenya’s agriculture strategy through 2029.

African Union Commission Chairperson, Moussa Faki Mahamat, identified youth disengagement from agriculture and urban migration as key challenges to food production.

The summit drew participation from leaders of Angola, Burundi, Somalia, Sahrawi, and Ethiopia, among others.

By Winston Mwale, AfrcaBrief

California: Dangerous windy conditions could spread new fires, forecasters warn

Michael Simire
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California: Dangerous windy conditions could spread new fires, forecasters warn

As wildfires continue to burn across Southern California, meteorologists are urging families, businesses, emergency officials and fire crews in the region to prepare for gusty winds and an elevated fire threat returning this week.

California wildfire
A burnt neighbourhood in California. Photo credit: Ariana Drehsler for The New York Times

“Winds circulating around an area of high pressure over the Great Basin will produce another round of Santa Ana winds early this week. An area of low pressure off the Pacific Coast will amplify those winds in some of the same areas that were hit hard by the fast-moving, wind-driven infernos,” AccuWeather Chief Meteorologist, Jonathan Porter, said.

Stronger winds will arrive early this week, AccuWeather expert meteorologists said, forecasting 40-60 mph wind gusts in areas prone to Santa Ana winds starting on Monday through Wednesday morning, with an AccuWeather Local StormMax™ of 85 mph.

“Gusty winds in the forecast next week are not expected to be as intense as the windstorm that led to these destructive fires, but we are concerned about another potential extreme fire risk on Monday and Tuesday,” Porter said.

Winds early next week may be more easterly and can behave differently than the powerful northeast winds the region experienced during the windstorm this week. However, they can still cause significant wildfire dangers.

“The wind is carrying wildfire smoke and hazardous particulates in the air that can travel miles away from the fire zone. This unhealthy air quality can trigger asthma and other respiratory issues. Extended exposure to wildfire smoke can lead to serious health problems,” Porter warned. “This is a major public health concern, since millions of people could potentially be exposed to unhealthy air quality through the weekend in the Los Angeles area.”

A continuation of the extremely dry pattern that started back in the spring of 2024 is expected to continue. Los Angeles has not received a quarter of an inch of rain since mid-April last year, a period when downtown L.A. typically receives between 5 and 6 inches of rain.

Catastrophic impacts and staggering damage estimates 

AccuWeather experts increased their preliminary estimate for total damage and economic loss from the fast-moving, wind-driven infernos in California to $135 billion to $150 billion on Thursday, January 9, 2025. 

“AccuWeather’s preliminary estimate for the total damage and economic loss from the wildfires has increased to a staggering $135 billion to $150 billion. This is a tragic disaster that will be remembered as the most destructive wildfire in California’s modern history, and likely one of the most destructive fires in modern U.S. history,” Porter said. “AccuWeather estimates the total damage and economic loss from these fast-moving, wind-driven infernos will cost nearly 10 times as much as the devastating 2023 wildfires in Maui. AccuWeather experts estimated the total damage and economic loss from the fires in Hawaii at $13 billion to $16 billion.”

Porter says this multi-billion-dollar weather disaster will have impacts and ripple effects that will be felt across the country in the coming months.

“The combined total damage and economic loss estimates for U.S. weather disasters in the past 12 months has reached a staggering $606 billion to $674 billion.  We had an incredibly destructive hurricane season, devastating tornado outbreaks, and now a historic wildfire disaster in January. This estimated amount is equivalent to roughly 2.5 percent of the annual gross domestic product of the United States,” Porter said. “These disasters are occurring more frequently, with more families and businesses feeling the direct and harmful impacts.”

Porter says much of the damage and losses have impacted high-risk and vulnerable areas where insurance carriers have been dropping coverage in recent months.

“The insurance crisis in the United States will worsen following the catastrophic damage from these wildfires. Insurance companies are facing tremendous losses, and the rising costs of insurance coverage are impacting people across the country,” Porter said. “This is a clear impact of climate change as we witness the acceleration of extreme weather events. In a world of increasing impacts from extreme weather, and more people living in areas vulnerable to disasters, our country needs to find new ways to solve this complicated insurance crisis.” 

Nnaji proffers comprehensive solutions to end power system collapses

Michael Simire
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Nnaji proffers comprehensive solutions to end power system collapses

Frequent power system collapses in the country need a multifaceted approach, says Prof. Barth Nnaji, former Minister of Power.

Prof. Barth Nnaji
Prof. Barth Nnaji

He said this in an interview on Sunday, January 12, 2025, in Lagos.

Nnaji highlighted the need for sufficient spinning reserves and the full implementation of the Supervisory Control and Data Acquisition (SCADA) system to stabilise the national grid.

Nnaji explained that implementing SCADA would significantly enhance fault detection and line patrols, which are critical in maintaining grid stability.

SCADA, a system that monitors and controls industrial processes, uses a combination of software and hardware to collect, analyse, and display real-time data, and can be operated remotely or on-site.

Nnaji identified several key factors contributing to the recurrent power system failures to include tower vandalism, overgrown vegetation along Right of Way paths and issues such as load imbalance and overload.

He also highlighted the importance of network restructuring and the adoption of an embedded generation model, which would reduce dependence on the grid by distribution companies (DisCos).

“The government should encourage DisCos to explore this option through policies and incentives, including ensuring the availability of gas to commercial and population centers across the country,” he said.

As Chairman of Geometric Power Group, Nnaji outlined several critical measures for improving power transmission, including the regionalisation of the grid.

Nnaji said identified the construction of a supergrid on top of the existing 330KV infrastructure, and the continued expansion of SCADA systems to automatically detect network failures and isolate affected areas.

He also called for the reinstatement of the guarantee instrument created in 2011/2012 to support the private sector’s development of new power plants and the expansion of existing ones.

“Government should insist that DisCos honour the terms agreed upon during privatisation, but it should also incentivise them to perform,” Nnaji advised.

He urged the government to ensure adequate gas production at reasonable costs to support power plants, while re-examining the regulated pricing system to ensure its effective implementation by both producers and regulatory bodies.

Nnaji cautioned against the introduction of new fees by government agencies, which could escalate costs under the guise of regulatory purposes.

“The government must focus on the gas transportation network and the contracting regime to ensure fairness and consistency, preventing any dilution of policies aimed at ensuring the availability of gas to power producers,” he said.

On the challenges faced by DisCos, Nnaji attributed their struggles to a lack of investment, which is compounded by poor creditworthiness.

He noted that the sector is severely underfunded and in need of substantial investment to improve operations.

He further emphasised that prepaid metering could help address the problem of estimated billing and metering gaps.

However, he noted that the Presidential Metering Initiative, though helpful, had been slow in its implementation.

“DisCos must invest in new substations to ensure proper load balancing, as it has been done by Aba Power.

“They must also invest in advanced technologies like Advanced Metering Infrastructure (AMI) to combat energy theft,” Nnaji advised.

According to him, while metering is important, it is not a cure-all for energy theft, as meter tampering by customers remains a persistent issue.

By Yunus Yusuf

GOCOP applauds Gov Okpebholo for appointing Edomaruse as Special Adviser

Michael Simire
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GOCOP applauds Gov Okpebholo for appointing Edomaruse as Special Adviser

The Guild of Corporate Online Publishers (GOCOP) has applauded the Edo State governor, Mr.  Monday Okpebholo, for the appointment of Mr. Collins Edomaruse as his Special Adviser, International Development Partners (IDP).

Collins Edomaruse
Collins Edomaruse

President of GOCOP and Publisher of RealNews Online, Ms. Maureen Chigbo, has described  Edomaruse’s appointment as a welcome development.

Chigbo, in a press statement by GOCOP Publicity Secretary, Ogbuefi Remmy Nweke, also congratulated Edomaruse for the appointment, assuring of support from over 110 members of GOCOP in carrying out his duties.

Until his appointment, Edomaruse who is a founding member of GOCOP and the Secretary General of the body of reputed online publishers, is also a member of the Nigerian Guild of Editors (NGE), among others.

Edomaruse doubles as the Publisher/Editor-in-Chief of METROWATCH, and has held several senior editorial management positions in THISDAY, including Group News Editor, Group Politics Editor, Deputy Editor, Daily, Saturday and Sunday titles respectively, as well as the Editor, Nation’s Capital/Abuja Bureau.

Also known as “General” because of his mastery of the Defence Beat, his records in THISDAY have reportedly remained unbeaten, where he ranked the best among the editors.

Confusion, lamentation trail Lagos ban on single-use plastics

Michael Simire
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Confusion, lamentation trail Lagos ban on single-use plastics

Controversy, confusion and lamentation have trailed the reactions expressed by stakeholders including sachet water dealers and consumers as the Lagos State Government prepares for the total ban on single-use plastics.

Sachet water
Sachet water

They said in separate interview on Sunday, January 12, 2025, in Lagos that the ban would aggravate the already economic hardship being experienced by many in the country.

Mrs. Uchenna Martins, a sachet water dealer, said that she depends on the proceeds from the pure water business to support her husband in fending for the family.

According to her, many traders and hawkers depend on her to source for cold sachet water to sell for motorists and the public, especially during heavy traffic.

“The ban on the single-use plastics, including sachet water, will increase poverty in the land as many of us depend on the sale to feed our families.

“Many housewives depend on the sale of sachet water, especially in places with a dense population, for survival.

“I appeal to the Lagos State Government to rethink their decision in the interest of the poor masses,” Martins said.

Also speaking, Mr. Segun Alabi, a resident of Ayobo, a suburb of Lagos, said since the failure of the public water supply system in Lagos, his family and many Lagos residents depend on sachet water.

Alabi wondered what his family would fall back on when the business of pure water dealers and producers are affected by the ban on single-use plastic.

He noted that a bottle of water, which sells for N200, was completely out of the reach of an average family in Lagos to depend on.

Bayo Olamide, a student, said that his parents depend on sachet water to refill his water container before going to school.

Also, Mr Oghenetega Emubor said that sachet water had been a huge source of relief to commuters in Lagos, especially when stuck in traffic.

“It is unimaginable to be stuck in Lagos traffic and feeling thirsty with dry throat without the relief that a cold sachet water gives,” Emubor said.

Speaking on the impending ban on single use plastic, Mr. Taiwo Adewale, the Managing Director, Waste Exchange, said there was the need for proper awareness and orientation by the government.

Adewale said the government should make it clear to the people the constituent of single use plastic.

“They need to know which is single used, which is banned. Although some are phased out already, like styrofoam.”

He noted that Shoprite, for instance, has phased out nylon bags from all their outlets, while some restaurants and hotels have phased out plastic straw.

“Other single-use such as pure water nylon should be in phases, until alternative and cheaper ones are made available.

“So, the various stakeholders must have a round table discussion on gradual phasing out and not immediate and total ban.

Mr. Friday Oku, the President of the Association of Scraps and Waste Pickers of Lagos, said that the association was in support of the total ban on single use plastics by the state government.

Oku said that, though sachet water nylon was recyclable, it did not add sufficient income to them.

“When you pick it, the volume appear so bulky, it does not add value because there is no weight.

“Our members refuse to pick them based on the reasons above,” Oku said.

He added that the association’s total support to the ban was predicated on the environmental nuisance posed by single use plastic.

Meanwhile, at Justright Superstores, at Iyana ipaja axis, the management had boldly placed signages all over the stores in support of the imminent ban on single use plastic.

They have jingles played in the shop appealing to their customers to comply and come with reusable bags for shopping.

However, Mrs. Bola Olatunji, a dealer of nylon bags and packaging materials at Iyana-Ipaja market said that she was not aware of the imminent total ban on single use plastic by the government.

Meanwhile, Dr Agharese Onaghise, the Executive Secretary of the  Food and Beverage Recycling Alliance, declined comments on the issue.

Also, Mrs. Clementina Ativie, the President of the Association of Table Water Producers of Nigeria, refused comments on the development when contacted.

The Lagos State Government recently restated its commitment to the total ban on single use plastic before the end of January during an inspection of drainage channel within the state.

Commissioner for The Environment and Water Resources, Mr. Tokunbo Wahab, said this while inspecting flood-prone areas and ongoing projects and new ones at Lagos Island.

By Fabian Ekeruche

IEA report highlights the Netherlands’ opportunities to drive further progress in its clean energy transition

Michael Simire
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0
IEA report highlights the Netherlands’ opportunities to drive further progress in its clean energy transition

Rapid growth in solar and wind power in the Netherlands is driving the country’s efforts to reduce emissions and achieve its long-term energy and climate goals, raising the need to address emerging challenges for the next phase of its clean energy transition, according to the IEA’s new Netherlands 2024: Energy Policy Review.

IEA Report
Aerial view of canals and buildings in Amsterdam, Netherlands

Since 2018, the Netherlands has cut its power sector emissions by half as a result of the deployment of renewable energy, which has been complemented by progress on electrification in end-use sectors such as heating and transport.

However, the report identifies several areas where the Netherlands can focus efforts to further the transformation of its energy sector in line with its goals, notably in expanding and upgrading electricity grids and reducing reliance on natural gas through a range of other low-emissions technologies.

Today, fossil fuels remain an important part of the Netherlands’ energy system for power generation, heating and industrial production. Close to half of electricity generation still comes from natural gas and coal while heating in buildings remains highly dependent on natural gas and the transport sector relies mostly on oil products. A timely and well-targeted transition to low-emissions technologies such as nuclear, renewables, heat pumps and district heating can help reduce fossil fuel imports in key sectors and improve long-term energy security, according to the report.

The Netherlands’ National Energy System Plan aims for electricity supply to grow four-fold by 2050. This means greater deployment of renewables will be required, building on the country’s leadership in solar PV and wind power. For offshore wind, the Netherlands has set ambitious targets to increase installed capacity from around 5 gigawatts (GW) today to 70 GW by 2050. This requires a stable framework for long-term offshore wind development in coordination with the building out of hydrogen production, which is expected to account for a large share of new electricity demand.

In order to meet its targets, the Netherlands will need to address grid constraints to unlock projects awaiting grid connection and attract further investment. The government is already making encouraging efforts to work with industry stakeholders through its National Grid Congestion Action Programme, which aims to address existing bottlenecks faced by new projects. Moreover, energy storage and flexibility will become increasingly important in an electricity system in which variable renewables account for a higher share of supply.

The IEA report highlights that further policy clarity is needed on the role of clean hydrogen in serving the Netherlands’ industrial base. Policies to stimulate demand would also have positive knock-on effects for both renewable energy deployment and emissions reductions. While demand for low-emissions hydrogen is potentially large, not only to meet domestic needs but also to export to other markets, more certainty is required to deliver final investment decisions for electrolyser projects.

Alongside renewables, the Netherlands is looking closely at how nuclear power can complement existing technologies in the energy mix, with plans to expand the current fleet by adding four new reactors. Assessing the contribution that nuclear can make to meeting energy and climate targets will be essential, according to the IEA report, in particular its role in providing flexibility and baseload security for the electricity system in the future.

The IEA regularly conducts reviews of the energy and climate related policies of its member countries and provides recommendations – a process that supports energy policy development and encourages the exchange of international best practices and experiences.

Overall, the IEA report concludes that the Netherlands needs a holistic, system-wide approach to address the interwoven challenges its energy transition is facing. The transition requires a comprehensive strategy with coordination across government and sectors to link ambitions to the realities on the ground and a more equitable distribution of costs and benefits.

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