The Dutch energy industry, like its international counterparts, is still predominantly run on fossil fuels such as oil and gas. 3% of energy production comes forth from renewable sources. Part of the reason the use of fossil fuels is still dominant is the proximity of The Netherlands to the North Sea’s natural gas fields, of which The Netherlands is an important exploiter. Nevertheless the impetus for a shift towards increased use of renewable sources has resulted in an ever-growing production through renewable means. The main sources of renewable energy production are; biomass (69%) and wind energy (26%). The remaining sources are hydro electricity, solar power and thermal pumps (between 3% and 1%).

Source: CBS Statistics NL

The rate by which initiatives are undertaken to increase the production and sale of renewable energy is heavily influenced by government attitudes towards the stimulation of such renewable energy sources. The Dutch government prefers stimulating this growth by subsidizing the end consumer who uses energy derived from renewable sources and by subsidizing the producers of said energy. This approach is preferred to direct investment in the field. This ensures the autonomy of the producers and prevents any embranglement in the market.

Some electricity companies also guarantee to buy an equal amount of 'green power' as is being used by their green power customers. The Dutch government also exempts green power from pollution taxes, which means green power is hardly any more expensive for the consumer than other power.

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