Netherlands Geothermal Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Netherlands Geothermal Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for geothermal energy in Netherlands is expected to grow at a CAGR of more than 3% in the forecast period of 2020-2025. The global cumulative geothermal energy generation capacity grew by 4.0% in 2018 when compared with 2017. Major factors driving the market include supportive government policies, drive towards cleaner energy generation, and increasing energy generation across the globe. On the other hand, the lucrative market for other renewable energy such as solar and wind is likely to hinder the market growth.

Key Highlights

• Ultra-deep geothermal energy is driving the market to produce electricity and which increased production by 51%, in 2019.
• In 2019, many of the power plants in operation are using dry steam plants or flash plants (single, double and triple) harnessing temperatures of more than 180°C.
• Since geothermal energy remains unexplored to a great extent, there is immense potential for the growth of the market. Additionally, the increasing need for reducing greenhouse gas emissions is expected to serve as a major area of opportunity for the growth of the geothermal power market.

Key Market TrendsUltra-deep Geothermal Energy to Dominate the Market

• Geothermal energy installed capacity had increased by 51% in 2019 compared to 2018. 5.6 PJ (PetaJoule) heat was produced in 2019.
• UDG is a method for producing heat with temperatures above 130 °C. The heat can be used for industrial processes, or to generate electricity.
• Using geothermal energy instead of gas as a source of heat results in a significant reduction in CO2 emissions. For an average project, the CO2 reduction is 88% compared to natural gas.
• In 2019, there were 24 doublets in the Netherlands, 20 of which were in production. The use of geothermal energy in the Netherlands in 2019 saved 168 million cubic meters of natural gas. This is equivalent to a CO2 reduction of 300,000 tons. 15 of the 20 doublets use their maximum availability (85 to 100%).
• In 2018 the combined capacity of Dutch installations grew to a total capacity of around 3PJ of sustainable heat or 200 MW.
• The prevalent in underground thermal energy storage systems are open systems which use groundwater wells to store heat and cold. This technology is called Aquifer Thermal Energy Storage (ATES).
• The geothermal sector made a statement in 2018 by publishing the ‘Master Plan geothermal energy in the Netherlands’.
• The ambition is for geothermal energy to meet 5% of the total energy demand for heat in 2030 and 23% in 2050. The ambitions are set at 50 PJ in 2030 and 200 PJ in 2050.

Supportive Government Policies to Drive the Market

• In 2017 there were 22 new applications for exploration licences for geothermal energy. As of 1 January 2018, a total of 31 geothermal energy exploration licences were in the process of application.
• In 2018, Five geothermal energy production licences are in the application procedure and 4 geothermal energy production licences were issued. Resulting in 12 effective geothermal energy production licences as at 1st January 2018.
• The geothermal production installations in the Netherlands by four while two more installations were initiated (licence areas Andijk and Zevenbergen II). These doublets will be completed in 2018.

Competitive Landscape

Netherlands geothermal energy market is moderately fragmented. Some of the key players are Aboitiz Power Corporation, Turboden S.p.A, Mitsubishi Heavy Industries Ltd., Calpine Corporation, Toshiba Corporation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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