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Significant growth of solar panels and wind turbines

8 April 2021 - Jurphaas Lugtenburg

Electricity production grew last year compared to 2019. More electricity is mainly generated by wind turbines, solar panels and gas-fired power stations. The use of coal is actually losing popularity. Electricity prices have fallen sharply as a result of the corona crisis. Tennet reports this in the annual market update released this week.

"The energy transition is in full swing and is becoming increasingly visible in the electricity mix," says Maarten Abbenhuis, COO of Tennet. "Realising the energy infrastructure of the future is the major challenge for the Netherlands and Europe in the coming decade."

More solar panels and wind turbines
The capacity of renewable energy has expanded considerably last year, according to the Market Update 2020† A total of 7,3 GW of sustainable capacity has been added. The growth is strongest in solar energy at 3,1 GW. In 2020, 49% more solar energy was generated than in 2019. The commissioning of the offshore wind farms near Borssele has increased the capacity by 1,4 GW. An expansion of no less than 66%. In total, 23 TWh of energy was generated from sustainable sources in the Netherlands. "In various places, the electricity grid is reaching its limits to transport all this sustainable electricity," says Abbenhuis. Tennet and the regional grid operator are working hard to integrate existing and new plans for sustainable energy, so that the electricity grid remains sustainable, future-proof and affordable.

Net exporter of electricity again for the first time
The electricity price on the Central Western European market (the Netherlands, Belgium, Germany, France and Austria) will amount to an average of €2020 per MWh for 32. The electricity price has fallen sharply by 19% as a result of the corona crisis. Especially during the first lockdown, which came into effect at the end of March, there was a sharp drop in the price. Industries in a number of countries significantly scaled back or shut down their production, especially at the beginning of the year. As a result, there was much less demand for electricity and gas. Due to lower demand and expansion of production capacity, the Netherlands is again a net exporter of electricity for the first time since 1981.

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Jurphaas Lugtenburg

Is editor at Boerenbusiness and focuses mainly on the arable farming sectors and the feed and energy market. Jurphaas also has an arable farm in Voorne-Putten (South Holland). Every week he presents the Market Flash Grains

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