Market Trends of Netherlands Solar Energy Industry
Solar PV Segment is Expected to Hold Significant Market Share
- The Netherlands' solar photovoltaic industry was one of the more significant segments in the power generation industry, with an installed capacity of around 14249 MW by 2021. With concern regarding climatic change and rising air pollution, the government has a roadmap to increase the share of renewable energy, such as solar, in its energy mix during the study period.
- As of 2021, the country was anticipated to cover around 6.8% of Dutch electricity demand, and the Dutch solar market grew 43 percent year on year in 2021.
- In October 2022, the Netherlands added 3.3 GW of new PV capacity at the end of the second quarter, which would be enough to bring its installed solar power to 17.6 GW.
- According to IRENA, the Netherlands' solar PV installed capacity was projected to account for around 14,249 MW in 2021.
- In the last five years, solar photovoltaic (PV) deployment has sped up thanks to lower costs and feed-in tariffs.Most likely, the key factors will help the country reach climate neutrality by 2040. As part of this ambitious target, the country pledged to source all its electricity supply from renewable sources by 2030. Hence, it is likely to boost solar PV deployment across the country.
- Distributed solar energy generation is growing in the country, mainly in the residential and commercial segments. In 2021, the installed solar energy capacity of the residential and commercial sectors combined reached 3.63 GW, witnessing a growth of 4% compared to 3.49 GW in 2020. Most of the development has come from the residential solar PV sector.
- Hence, owing to such developments, the solar PV segment will likely have a significant market share during the forecast period.
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Governmnet Initives to Support the Market Growth
- The total renewable energy installed capacity of renewables was 22954 MW in 2021. Among the renewable energy installed capacity, wind power accounts for 7801 MW, and hydropower accounts for 37 MW.
- To meet its sustainability goals of having a high share of renewables in electricity production, the government has implemented several policies in the country. The solar energy sector, thus, has shown tremendous growth in the last decade. In the Netherlands, the cumulative installed solar power capacity grew from 111 MW in 2011 to 14249 MW in 2021 due to such initiatives.
- As of 2021, the solar power share in the renewable electricity mix was around 29%. Due to effective government policies like the net metering scheme, the share is expected to grow substantially in the coming years. The government decided to maintain its net-metering system in its current form until 2023, with plans to phase it out gradually by 2031.
- Further, in 2022, the Dutch government announced earmarking a budget of around USD 13.8 billion for the SDE+ (Dutch Renewable Energy Support Scheme) program. The scheme includes solar parks, wind parks, and hybrid renewable power plants with hydrogen production facilities.
- Owing to the above point, an increase in renewable energy demand is expected to drive the Netherlands' Solar Energy Market during the forecast period.
