Energy transition law in the Netherlands: from oil to hydrogen

The legal framework for the Dutch energy transition changed fundamentally on 1 January 2026, when the Energy Act (Energiewet) entered into force and replaced the Electricity Act 1998 and the Gas Act with a single statute. It governs the energy system as a whole: market roles, connection and transport, the duties of system operators, energy data and the position of the end user, including energy sharing and active customers.

Hydrogen sits partly inside that framework and partly in a separate one. At European level, the hydrogen and decarbonised gas market package sets rules for hydrogen networks, third-party access and unbundling, which member states must transpose into national law. In the Netherlands, a national hydrogen network is being built by a designated operator, with regulated access. Alongside this run the instruments that decide whether a project actually goes ahead: the permit under the Environment and Planning Act (Omgevingswet), connection and transport capacity on a congested grid, subsidy schemes, and the state aid rules that limit them.

For a business, three questions decide feasibility, and they are legal questions before they are technical ones. Can you obtain a connection and transport capacity, and on what timescale? Which permits do you need and who grants them? And does the planned contract structure (an offtake agreement, a power purchase agreement or a joint venture) fit the regulatory position of the parties?

In short: which rules apply to an energy transition project?

Several layers apply at once: EU law, the Energy Act, the Environment and Planning Act and the subsidy rules. The table shows the main instruments and their status.

Why is the shift from oil to hydrogen a legal question?

Because hydrogen only becomes a real alternative when the law makes it possible to produce, transport and sell it, and when the rules make clean hydrogen commercially viable. The technology exists; the legal framework decides the pace.

Hydrogen is already used on a large scale in Dutch industry, for example in refineries and fertiliser production, but almost all of it is made from natural gas. The transition is about replacing that “grey” hydrogen with hydrogen produced by electrolysis from renewable electricity, and about using hydrogen where electrification is difficult, such as high-temperature processes, heavy transport and shipping.

Why does the energy transition need legislation?

The Climate Act sets binding national targets: 55% fewer greenhouse gas emissions in 2030 than in 1990, and climate neutrality in 2050. The government considers a 90% reduction by 2040 a logical intermediate step. Those targets do not bind companies directly, but they drive the policy instruments that do: the EU Emissions Trading System (EU ETS), subsidy schemes, permit conditions and obligations to use renewable fuels.

Hydrogen as an energy carrier

Hydrogen can store and transport energy, and it can serve as a raw material. Produced by electrolysis with wind or solar power, it emits no carbon dioxide at the point of production. Under EU law, such hydrogen counts as a renewable fuel of non-biological origin (RFNBO) only if it meets strict conditions on the electricity used, laid down in Delegated Regulation (EU) 2023/1184, and achieves at least 70% greenhouse gas savings under Delegated Regulation (EU) 2023/1185.

Those conditions matter commercially. Whether hydrogen qualifies as an RFNBO determines whether it counts towards the targets for industry and transport, and therefore what a buyer is willing to pay for it. A project that cannot prove compliance with the additionality and correlation rules sells a different product.

What changed with the Energy Act on 1 January 2026?

The Energy Act brings the rules for electricity and gas together in one statute and implements the EU electricity market rules. For businesses, the most visible changes concern connections, energy sharing, data and consumer protection.

One act for the whole energy system

The Electricity Act 1998 and the Gas Act of 2000 no longer exist. Their content has been reorganised in the Energy Act and the Energy Decree (Energiebesluit). The terminology follows EU law: grid operators are now called system operators (systeembeheerders). Many detailed rules, including tariffs and technical conditions, are set by the Authority for Consumers and Markets (ACM) in codes.

Connections and transport capacity

The system operator must still connect you and make an offer for transport under Article 3.105 Energy Act, but it may refuse transport where there is reasonably not enough capacity, and it must give reasons and be transparent about when capacity becomes available. In practice, a request for a large connection in a congested area can mean waiting for years.

Energy sharing and active customers

Households and businesses may generate, store and share energy together, for example in an energy community, without a traditional supplier in between. Active customers who generate and sell their own electricity get a clearer legal position. For business parks, this opens the way to sharing capacity and energy locally.

Data and consumer protection

The Energy Act introduces a framework for sharing energy data, with a central data exchange entity, and strengthens consumer protection: more transparency on prices, rules on dynamic contracts and stricter supervision of suppliers by the ACM.

How is hydrogen regulated in the Netherlands?

Mostly through EU law that still has to be fully transposed, combined with a national network operator appointed by the government. Until transposition is complete, some questions about access and tariffs remain open.

The EU hydrogen and decarbonised gas market package

Directive (EU) 2024/1788 and Regulation (EU) 2024/1789 set common rules for the markets in renewable gas, natural gas and hydrogen. They cover the regulation of hydrogen networks, third-party access, the unbundling of network operation from production and supply, and certification of low-carbon hydrogen.

Member states had to transpose the directive by 5 August 2026. On 25 September 2026, the European Commission sent letters of formal notice to 26 member states, including the Netherlands, for failing to notify full transposition. The Netherlands now has two months to respond. Until the national rules are in place, contracts should allow for changes in the regulatory regime.

The national hydrogen network

The government has designated Hynetwork Services, a subsidiary of Gasunie, to develop the national hydrogen network, largely by reusing existing gas pipelines. According to Gasunie’s updated roll-out plan, the first section is in the Rotterdam port area. Connections in the north, the North Sea Canal area and the south-west follow in the period up to 2030. Limburg and the connections between the industrial clusters, including the Delta Rhine Corridor, are planned for 2031 to 2033.

For a producer or user, the timing of the network in their region is therefore a key planning factor. Transport agreements and tariffs are regulated, and the rules will be tightened once the EU package is transposed.

Targets for renewable hydrogen

The revised Renewable Energy Directive (RED III) requires that 42% of the hydrogen used in industry is renewable (RFNBO) by 2030, and 60% by 2035. For transport, there is a combined target for advanced biofuels and RFNBOs, with a separate minimum for RFNBOs.

Member states must translate these targets into national obligations. For industrial users of hydrogen, the way the Netherlands does this, for example through an obligation on users or suppliers, will determine how much renewable hydrogen they have to buy. That makes long-term offtake agreements attractive, but also risky if the details change.

Which permits does a hydrogen or energy project need?

Usually an environment and planning permit (omgevingsvergunning) under the Environment and Planning Act, which entered into force on 1 January 2024. Depending on the size and location of the project, the municipality, the province or the minister is the competent authority.

An electrolyser, a storage facility or a filling station typically needs a permit for building and for an environmentally harmful activity (milieubelastende activiteit). The Environmental Quality Decree (Besluit kwaliteit leefomgeving) contains rules on external safety that matter for hydrogen, because it is flammable and stored under pressure. Industry guidelines, such as the PGS publications on hazardous substances, are often used to give substance to those rules.

Nitrogen deposition

Nitrogen remains a major obstacle for construction projects near protected Natura 2000 areas. On 2 November 2022, the Council of State (Raad van State) ruled in the Porthos case that the general exemption for nitrogen emissions during construction could no longer be applied (ECLI:NL:RVS:2022:3159). Since then, construction emissions must be assessed for each project, which can add time and cost.

Large projects

For infrastructure of national importance, such as pipelines and large grid connections, the government can use a project decision (projectbesluit) under the Environment and Planning Act. That concentrates decision-making, but the procedure still includes participation and the possibility of appeal to the Council of State.

How do you deal with grid congestion?

By treating grid capacity as a legal and contractual issue from day one. In congested areas, a connection or extra transport capacity can take years, and the Energy Act does not change that.

Under the ACM’s prioritisation framework (Codebesluit prioriteringsruimte transportverzoeken 2025), adopted on 12 December 2025 and applicable since 1 January 2026, system operators may give priority to three categories: congestion relievers, safety (such as hospitals, emergency services, police and defence) and basic needs (such as housing, education and public transport). Other users follow in order of application.

Alternatives include flexible or non-firm transport contracts, in which the system operator may limit your use at busy times in exchange for earlier access, and group contracts in which several companies share capacity. Such contracts determine how many operating hours an electrolyser can actually run, which directly affects the business case.

What role do subsidies and state aid play?

A decisive one: most green hydrogen projects are not yet viable without public support. Every subsidy must, however, comply with EU state aid rules.

The main Dutch schemes are the SDE++ (Stimulering Duurzame Energieproductie en Klimaattransitie), which compensates the difference between the cost of low-carbon technology and the market price, and the scheme for scaling up renewable hydrogen production through electrolysis (OWE), managed by the Netherlands Enterprise Agency (RVO). In April 2024, the government announced that seven projects would receive subsidy under the first OWE round. At EU level, there are auctions of the European Hydrogen Bank and projects of common European interest (IPCEI).

State aid rules, including the Commission guidelines on state aid for climate, environmental protection and energy (CEEAG), limit how much support a project may receive. A subsidy decision always contains conditions, such as deadlines for realisation and reporting obligations. If you do not meet them, the subsidy can be reduced or reclaimed.

Carbon pricing

Industrial installations fall under the EU ETS, in which a price must be paid for each tonne of CO2 emitted. In addition, the Netherlands introduced a national CO2 levy for industry in 2021. In 2026, the government announced that it will abolish this levy altogether to strengthen the competitiveness of energy-intensive industry. Check the current state of the legislation before you build it into a business case.

What does this mean for contracts?

Contracts in the hydrogen chain must allocate risks the law has not yet settled: regulatory change, grid delays and certification. Under Article 6:258 BW a court can amend a contract for unforeseen circumstances only in exceptional cases, so a clear clause in the offtake agreement, PPA or joint venture agreement gives more certainty.

Which questions matter for your sector?

For industry, the key questions are the RFNBO obligation, the EU ETS and access to the hydrogen network. For transport companies, the renewable fuel obligations and filling station permits come first. For developers of wind and solar parks, the combination with an electrolyser can be a way to use electricity that the grid cannot absorb, but only if the grid contract and the RFNBO rules allow it.

What should you check as a producer or project developer?

Settle grid capacity, permits and the regulatory position of the contract structure before you commit capital. Where one of these is uncertain, reflect it in the timetable and in conditions precedent.

• Written confirmation from the system operator of when connection and transport capacity will be available, and on what terms.
• The permits needed under the Environment and Planning Act, the competent authority and the nitrogen position of the site.
• Whether the hydrogen will meet the RFNBO conditions of Delegated Regulations (EU) 2023/1184 and 2023/1185.
• The timing of the hydrogen network in your region and the terms of access.
• The SDE++ or OWE subsidy conditions and state aid limits against the planned structure.

What should you check as an industrial user or offtaker?

As a buyer you carry the RED III and EU ETS exposure, so the offtake agreement must protect you. Check at least:

• Who guarantees RFNBO certification, and what happens if it fails.
• How price and volume change if the national RED III obligation or the transposition of Directive (EU) 2024/1788 turns out differently.
• Minimum purchase (take-or-pay) obligations and what happens if your demand falls short.
• Who holds and transfers the guarantees of origin.
• Whether the contract provides for grid or network delays, rather than relying on unforeseen circumstances under Article 6:258 BW.

What can we do for you with energy transition projects?

Our energy law team advises developers, industrial users and investors. In practice we:

• Map the permits, competent authorities and nitrogen position for your site.
• Review the transport offer or refusal from the system operator and test it against the Energy Act and the ACM codes.
• Draft and negotiate offtake agreements, PPAs and joint venture agreements with change-in-law, certification and grid-delay clauses.
• Test the structure against SDE++ or OWE subsidy conditions and the state aid rules.
• Assist with objection and appeal against permit and subsidy decisions.

Summary

• Since 1 January 2026, the Energy Act has replaced the Electricity Act 1998 and the Gas Act.
• Hydrogen is regulated mainly through the EU hydrogen and gas package; the Netherlands missed the transposition deadline of 5 August 2026.
• Hynetwork Services is developing the national hydrogen network in phases, starting in Rotterdam.
• RED III requires 42% renewable hydrogen in industry by 2030 and 60% by 2035.
• Grid capacity, permits and subsidy conditions decide feasibility; settle them before you commit capital.

Frequently asked questions