Netherlands falling short on renewables funding

• 11 years ago (2012-06-28)
• Junior Isles

North America 999 Renewables 753

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The Netherlands will miss its 2020 renewable energy target unless it directs an additional €24 billion towards developing renewable energy, according to a new report by Rabobank.

Renewable energy accounted for just 4 per cent of Dutch energy output in 2011, and Rabobank’s report estimates that, with current rates of investment, it will fail to reach the target of 14 per cent by 2020, reaching only 9 per cent.

“The extent of the shortfall is set to become apparent next year and will lead to a new wave of investment opportunities in solar photovoltaics , offshore and onshore wind and co-firing biomass,” said Rabobank.

An extra €24 billion will need to be spent by the Dutch if the target is to be reached, a 200 per cent increase on the €12 billion already forecast under the business-as-usual scenario, Rabobank analyst Clara van der Elst has said.

Rabobank lays blame for the probable undershoot with the Netherlands’ main renewables policy. The policy currently rewards approved projects with a set 8-15 year subsidy, covering the shortfall between the generation cost and the actual electricity price. Rabobank says the policy leads to a relatively slow building rate.

The Netherlands also relies too heavily on biomass-based technologies, with these attracting almost 80 per cent of funding in 2011, “at levels that preclude profitability, partly because the price of … feedstocks has risen”, according to the report.

In order to reach the 14 per cent target, solar PV would require €13 billion, offshore wind €7 billion, and onshore wind and biomass would each require €2 billion of investment, according to van der Elst.

“Although it will be challenging, there still is a window in which the Netherlands can come close to meeting its 2020 renewable energy target” she added.