News Energy
Network cannot keep up with investments in energy
Energy investments in the Netherlands have risen sharply in recent years. In particular, more money is being spent on renewable energy. The investments in networks do not grow proportionally. This is evident from figures from the Central Bureau of Statistics (CBS).
In 2018, a total of €14,8 billion was invested in energy activities. That is 22% more than in the previous year, according to figures published by Statistics Netherlands on Friday 30 October. It concerns investments in conventional energy, renewable energy, energy networks and energy saving.
Less money for conventional energy
Based on the new figures, it can be concluded that 2014 was a turning point. From that year on, investments in conventional sectors, such as the extraction of fossil fuels and the production of nuclear energy, fell. This is a decrease from €5,7 billion in 2014 to €3,1 billion in 2018.
On the other hand, investments in renewable energy, energy conservation and networks have increased significantly over the same period. The share of renewable energy grew from €2008 billion to €2018 billion between 1,7 and 4. Investments in solar energy in particular have increased and tripled in 5 years. In 2018, €1,8 billion was spent on solar energy.
Wind energy fluctuates
Investments in wind energy have also grown, but vary greatly from year to year. This is due to the construction of large offshore wind farms, causing investment peaks. In 2018, it was €1,1 billion. Before 2014, that was less than half of that. Investments in matters such as heat, geothermal energy, energy from water, biomass and biofuels are also increasing, but this development is slowing down.
It is striking in the figures that investments in energy transport networks do not grow in proportion to investments in renewable energy. In 2018, this amounted to €3,6 billion, comparable to 2016. In previous years, the investment in networks fluctuated around €2,5 billion.
Limited threat network capacity
The growth is mainly attributable to investments in the electricity network, among other things aimed at increasing the network capacity. Nevertheless, capacity is insufficient in many places and is seen as one of the biggest obstacles to the growth of the share of renewable energy. For example, Aernoud van Eeken of Solar panels on the roof recently indicated in a delivery CEO in Agribusiness.
Wind and solar energy sources cause more peaks and troughs in the network, which means that investments are needed to make the network more resilient. The construction of large offshore wind farms and the connection of these wind farms to the network also require investments in the networks.
Jeanette Pennings
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