Why decarbonisation, affordability, and security of supply increasingly go hand in hand

For many years, the energy transition was mainly approached through the lens of the “energy trilemma”: the trade-off between sustainability, affordability, and security of supply. In these terms, increased decarbonisation often meant higher costs or additional pressure on the energy system. This picture is changing rapidly, however, according to the recent report titled Synergies in the Netherlands’ energy transition—why the energy transition Is about more than sustainability.

Geopolitical tensions, volatile energy prices, and concerns about the competitiveness of European industry show that decarbonisation cannot be viewed separately from economic resilience and strategic autonomy. At the same time, new opportunities are emerging to strengthen these objectives simultaneously.

PwC is a member of World Energy Council Netherlands and contributes to the discussion on how the Dutch energy system can respond to this new reality.

From trade-offs to synergies

The report finds that the energy transition is shifting from a model based on trade-offs to one in which synergies are key. Under the right conditions, sustainable solutions can contribute not only to lower emissions, but also to greater security of supply and more stable energy costs.

This is partly because fossil energy is losing its historical advantages. International dependencies, geopolitical risks, and price volatility are making the current energy system more vulnerable. At the same time, sustainable alternatives are maturing technologically and becoming increasingly attractive economically. As a result, the energy transition is increasingly about designing a future-proof economy, rather than climate policy alone.

The Netherlands as a real-world test case

The Netherlands continues to combine its energy-intensive industrial sector with a central role as an energy and trading hub amid relatively high electricity prices and ambitious climate targets. It is for precisely this reason that the Netherlands is a telling test case for whether decarbonisation, affordability, and security of supply can be effectively aligned.

The report identifies five areas in which such synergies can emerge:

1. Managing the variability of renewable energy, for example through storage, demand response, and additional dispatchable capacity.
2. Stimulating green and low-carbon energy demand, supported by appropriate infrastructure and targeted policy choices.
3. Expanding the energy supply mix from sustainable sources, such as renewable electricity and green or biogenic molecules.
4. Improving energy efficiency, especially in the built environment and transport.
5. Decarbonising industry while maintaining competitiveness, to limit carbon leakage and strengthen strategic autonomy.

These synergies do not arise automatically, and challenges remain, including grid congestion, investment requirements, pressure on ecosystems, and dependencies in international supply chains. Early decision-making and better system integration are essential, according to the report.

Greater coherence in policy and investment

The study concludes that the energy transition can no longer be approached solely through climate objectives. Increasingly, infrastructure, industrial policy, and market design are influencing the affordability and resilience of the energy system.

Stronger economic and societal foundations for the transition can be created by developing measures that support multiple objectives simultaneously. This also enhances visibility into public and private costs, risks, and investment timing.

This integrated approach calls for greater predictability, coherence, and a clear long-term vision from policymakers. For companies and investors, the report underscores the importance of strategic choices around energy costs, security of supply, and decarbonisation.

Towards a more resilient energy system

The report offers a fresh perspective on the energy transition without providing a fixed roadmap. Rather than looking solely at trade-offs, it creates space for broader cooperation and more robust solutions by focusing on opportunities to advance more than one objective at the same time.

In a world where energy, geopolitics, and the economy are becoming increasingly interconnected, the energy transition is more than just a sustainability issue: it is also a matter of economic resilience and strategic positioning.

Used by permission of World Energy Council Netherlands.