Key findings

1. The share of solar in sustainably generated electricity rose from 1.83% in 2012 to 23.7% in 2019. However, the level of sustainable energy is still too low to meet the government’s climate targets.
2. There are geographical differences in the number of solar parks in the Netherlands. The north-eastern Netherlands is the current hotspot for solar parks. This region has relatively low land prices, short distances to grid connections and a sound incentive policy. Yet even the current number of parks is resulting in capacity issues in the electricity grid.
3. Solar power projects and the sector as a whole are experiencing a significant increase in scale, partly due to technological developments. These new developments have led to a new subsidy system: SDE++.
4. The key policy challenges for the development of solar parks in the Netherlands include decentralised decision-making and streamlining various spatial interests in a densely populated country.
5. By 2030, grid capacity is expected to be low for two out of three electricity substations (high and intermediate). The capacity of the existing stations will be increased and new substations will be added to the network. However, this is a time-consuming and especially a costly process.
6. Solar parks are likely to be viewed more as an alternative asset class, partly due to the favourable risk-return profile and the government’s ambitious sustainability targets.

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