FROM Boerenbusiness do you get energy

A negative oil price, a negative electricity price, violently fluctuating quotes for gas and CO2 emission rights. The energy market is in full swing, partly as a result of the corona crisis. More and more agricultural entrepreneurs are actually producing energy. Therefore introduces Boerenbusiness made a page about the energy market. 

Who could have imagined that a few weeks ago, that yesterday (Tuesday) you received a lot of dollars for a barrel of American oil delivered in the short term. Or that the energy generated in the Netherlands from sun and wind has broken one record after another in the past week. Last Sunday, this green electricity itself accounted for 70% of the total Dutch electricity consumption at that time. However, in some periods this results in a negative electricity price. 

The consequences of the corona crisis are shaking the energy market to its foundations. Due to the large drop in demand, the price of a barrel of crude American oil could turn negative. In addition, due to all the measures, electricity consumption in this period is considerably lower, so that - certainly in view of the abundant number of hours of sunshine - the electricity price on the energy market also falls below 0 for periods of a few hours.

Impact on agricultural companies
These developments in energy also have an impact on agricultural companies in the Netherlands. Obviously for entrepreneurs who have a windmill on their farm and/or have solar panels on the roof of the shed. Or participate with other colleagues in a solar park. But negative energy prices can also affect other markets, such as the dairy market. As a result, dairy farmers can be affected indirectly due to current price effects.

Strikingly enough, the share of the agricultural sector in the generation of (green) energy in the Netherlands is not readily measurable. The most recent figures from Statistics Netherlands from 2018 show that the agricultural sector in the Netherlands is responsible for more than 7% of the total energy production from wind, solar and biomass. However, this is a considerable underestimate, because agricultural entrepreneurs who, for example, participate with others in a wind or solar park collective are not taken into account. Statistics Netherlands sorts these initiatives under 'energy companies'. In addition, the agricultural sector has invested heavily in the past year in, among other things, solar panels.

Smell opportunity in energy
Energy is increasingly becoming an independent market for the agricultural entrepreneur from which he or she can also earn returns. The European Union is making great efforts to generate energy from natural alternative sources, and space is needed for that. Land owned by the farmer. And with that, the agricultural entrepreneur smells his chance. More and more agricultural companies are producing energy.

From the sun, wind, biomass, bio-digestion. In the future, energy storage will also be added. And that energy is also a market, manifests itself in all intensity during this period. Electricity prices fluctuate, gas and oil prices all have a price curve due to supply and demand. Markets are in the genes of Boerenbusines and for 10 years many agricultural markets have been providing need-to-no information our subscribers, entrepreneurs in the agricultural sector

Profitable investing
It is therefore logical that we also inform these entrepreneurs about the energy market. What is going on, what are the prices and where are the opportunities? What subsidies are there, how can you invest profitably in the energy transition? And so on, and in this period more interesting than ever. That's why you get from Boerenbusiness energy.

Eric the Thrush

Eric is editor-in-chief of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

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