The market for renewable energy in the Netherlands is expected to grow at a CAGR of approximately 7.34% during the forecast period of 2020 – 2025. Factors such as increasing increasing renewable energy generation, reducing dependence upon fossil fuels, rising environmental awareness and government’s push towards following the Paris climate accord are expected to boost the demand for Netherlands renewable energy market. However, technological and cost constraints in the renewable energy market are impeding the growth of the market studied.

  • Till 2018, energy from biomass made up around 60.7 % of the renewable energy in the Netherlands. This is expected to change considerably in the forecast period with wind energy taking a large share in renewable energy and becoming the largest in the segment. This growth can be attributed to the private players’ involvement trying to increase wind energy profits.
  • The prices of renewable energy are decreasing steadily, and in some places out competing the national average price per kilowatt. As the prices fall further,the renewable energy are expected to sustain without governmental subsidies and thereby forming an opportunity for the companies to grow further in the sector.
  • Renewable energy gereration has been increasing steadily in the country with a significant increase in the amount of solar energy being produced in the country. The country is, in 2018, dependent on the import of fossil fuels especially of natural gas from Norway.



Key Market Trends

Increasing Deployment of Wind Energy to Drive the Market

  • Under the Paris Climate Agreement, 70% of the Netherlands electricity needs, that is, a total of at least 84 Terawatt-hour (TWh), must be generated sustainably (solar or wind power) by 2030. More than half (49 TWh) is expected to be generated by offshore wind farms, while the other 35 TWh is likely to come from onshore wind farms and onshore solar power plants.
  • In 2018, the growth in the wind energy sector was 6.4%. The installed capacity increased from 4202 MW, in 2017 to 4393 MW, in 2018. The installed capacity then rose to 4.46 GW in 2019.
  • Vattenfall (a wind energy company) is expected to construct and operate its second unsubsidized wind farm in the Dutch North Sea. After its completion in 2023, the wind farm is expected to generate around 760 MW of electricity, which is enough to provide for 2.5% of the country’s electricity needs. Vattenfall also received the permit to build subsidized wind farm sites in the country, in 2018.
  • Hence, with rising profitability in the wind energy sector and increasing private participation, the industry is expected to witness a significant surge during the forecast period



Increasing Renewable Energy Generation to Drive the Market

  • The solar energy generation in the country increased, by 45.2 %, from 2.2 Terawatt-hours, in 2017 to 3.2 Terawatt-hours, in 2018.
  • Around USD 18 billion was spent, in 2018, over fossil fuel imports. The most consumed among the fuels for energy needs is natural gas, which accounted for around 42% of the total primary energy supply, in 2018.
  • The province of Groningen has faced several earthquakes over the 2010-2018 period. In March 2018, the Dutch Cabinet decided to scale back extractions in the Groningen gas fields. Natural gas extraction had already been halved between 2012 and 2018. In 2018, natural gas import exceeded the production capacity. Nearly 56 billion cubic meters of natural gas was imported, most of which came from Norway.
  • Oil is the most imported commodity reaching 1100 bbl/d in 2018. As the prices are continually fluctuating, it provides an advantage to change to a more consistent energy provider, which can be supplied with renewable energy.
  • Hence, Netherlands renewable energy market is expected to increase significantly in the forecast perid due to increase in the environmental awareness , upcoming projects and push to reduce dependence on the fossil fueld which is mostly imported from other countries.



Competitive Landscape

The Netherlands renewable market is partially fragmented. Some of the major players include Vattenfall AB, Zhejiang Chint Electrics Co. Ltd., Sunstroom Engineering BV, Siemens AG, and DMEGC Solar Energy.

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