Netherland Renewable Energy Market | Size, Share, Trends and Forecast to 2031

The global energy landscape is going through a major shift towards renewable based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewables deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability, and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of the establishments primarily engaged in operating renewable electric power generation facilities. The power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or to electric power distribution systems.

The present energy mix in the Netherlands is natural gas (38%), oil (35%), coal (11%), biofuels and waste (5%), and nuclear, wind, solar, hydropower, and geothermal (11%). There is one nuclear power plant and one LNG terminal in the country.

Netherlands Renewable Energy Market Scenario

In 2021, the renewable energy sector accounted for 49% of electricity capacity in the Netherlands. Among the renewables, solar accounted for 62.1%, and wind accounted for 34%. 

The installed capacity of Solar Photovoltaic in Spain was 14249 MW, while for wind, it was 7801 MW. In the past decade, each time that the amount of solar photovoltaic installed capacity doubled globally, the price of installing solar panels and modules declined by 34%.

Netherlands Wind Energy

Offshore wind energy is critical to the Netherlands' energy transition. The North Sea is an excellent location for wind turbine installation because of:

• Shallow waters
• Favorable wind patterns
• access to ports and energy-consuming industries

Offshore wind energy costs have dropped considerably in recent years, making it the most affordable large-scale renewable energy source.

The installed capacity of wind power registered an increase of 17.9% relative to 2020. The country's wind power sector comprises both onshore and offshore wind farm installations, with onshore wind forming the major portion of total installations with an installed capacity of 5341 MW, followed by offshore wind with 2460 MW by the end of 2021. 

(For more insights and analysis, consider our report on Netherlands Wind Energy Market)

The government expects offshore wind energy to reach at least 4.5 GW by 2023. The Energy Agreement for Sustainable Growth includes this promise. Offshore wind turbines will then provide 3.3 percent of overall energy needs in the Netherlands.

The Climate Agreement and Coalition agreement (2019) both pledged to maintain the successful offshore wind energy program. This will lead to a total offshore wind power capacity of 11 GW by 2031, enough to produce 8.5 percent of total energy in the Netherlands and 40% of the present electricity demand.

Offshore wind farm construction represents a business potential. The vast domestic market allows Dutch offshore and wind power firms to expand their knowledge, which boosts their position in the worldwide market. Dutch firms already account for roughly 25% of the whole European offshore wind energy industry.

Solar Energy in Netherlands

Solar power is a significant green energy source in Netherlands's energy mix. The Dutch government has worked hard over the past few years to considerably increase the number of solar panels in the Netherlands, which appears to have paid off. In fact, the Netherlands has the most solar panels per capita in Europe, outnumbering countries such as Germany, Denmark, and Switzerland.

The installed capacity of solar photovoltaics in 2021 increased by 30.1% relative to 2020. In the past decade, each time that the amount of solar PV installed capacity doubled globally, the price of installing solar panels and modules declined by 34%.

(For more insights and analysis, consider our report on Netherlands Solar Energy Market)  

Hydrogen

The Netherlands is looking into ways to use existing natural gas infrastructure while reducing carbon emissions intensity by combining fossil gas with biomass gas and "blue" or "green" hydrogen gas. They are a global pioneer in pilot projects to manufacture and use hydrogen in specific industries such as the chemical industry and heavy transportation. The government tasked state-owned network operator Gasunie with formulating plans to convert the existing natural gas pipeline network into a hydrogen gas network in 2021.

In the last decade (2010-2020), globally, the electricity generation from all the sources has increased by 2.2%, from 21,570 terawatt hours to 26,823 terawatt hours. During the same period, the power generation from renewables increased by 15.25%. The regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy tax credits and subsidies, feed-in tariffs, and competitive auctions helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic electricity has fallen by 85%, and the costs of both onshore and offshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, Renewables were the only energy source for which demand increased in 2020 despite the pandemic, while consumption of all other fuels declined. The share of renewables in the total energy mix grew from 3.53% in 2010 to 11.73% in 2020 and is expected to grow to about 30% by 2031.

Energy Policy of Netherlands

The Dutch central government plans to reduce greenhouse gas emissions (such as carbon dioxide (CO2)) to zero by 2050. It intends to make 16 percent of all the energy used in the Netherlands sustainable by 2023. This is described in the Energy Agreement for Sustainable Growth, which the government signed with 40 organizations, including employers, labor unions, and environmental groups. The Energy Agenda establishes goals for the years up to 2050.

The switch to sustainable power was planned in three stages:

• 14% sustainable energy by 2020
• 16% sustainable energy by 2023
• Almost 100% sustainable energy by 2050. CO2 emissions should be 80% to 95% lower than in 1990.

This is laid down in the energy agenda, which sets out a roadmap to 2050.

Despite successfully decoupling economic growth from GHG emissions, the Netherlands continues to rely on fossil fuels. Several measures have been implemented to aid with decarbonization. The Stimulation of Sustainable Energy Production plan awards subsidies to renewables, hydrogen, and carbon capture based on averted CO2 emissions through competitive auctions. A strategy for offshore wind is driving rapid development and targets 11.5 GW of capacity by 2031, while robust innovation programs promote the adoption of important decarbonization technologies.

Recent Developments 

• Shell announced to build Europe's largest renewable hydrogen plant in the Netherlands to power the Dutch refinery. The renewable hydrogen plant called the Holland Hydrogen I facility will be functional from 2025. 
• The German energy firm RWE announced its plans to invest in a pilot project centered around the deployment of a floating solar farm in the North Sea, about 53 kilometers from the Dutch coast. 

What do we cover in the Report?

Blackridge Research's Netherlands Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of the Netherlands.

Furthermore, the report will contain the drivers and restraints within the Netherlands Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards), as well as country-specific regulations. Finally, the presentation would enable the identification of market opportunities and plan for long-term growth.

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