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Global Onshore Wind Market Report

Key Regional Markets

The Netherlands

Onshore Wind Capacity

15.3 GW

GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)




Country Credit Rating (S&P)
Renewable Energy capacity (2022)


Onshore Wind Share in Renewables (2022)


Renewable Energy Target

Targets generating 70% of electricity from renewable sources, primarily solar and wind power by 2030

The Netherlands is committed to achieving carbon neutrality by 2050. To that end, it has set a target to generate 16% of its energy from sustainable sources by 2023 (IRENA, 2023). Meeting this goal will require significant contributions from onshore wind sources. Historically, onshore wind was the leading source of clean energy, with a favourable ecosystem for its development. However, changes in regulatory environments and policies have shifted the focus to solar energy. Despite this shift, the onshore wind industry in the Netherlands still has significant potential, given the existing project pipeline and opportunities for repowering legacy wind farms.


  • Promotion of renewable development through SDE++ scheme

  • Low cost of capital for wind farm projects compared to its peers driving investor morale


  • A decline in annual capacity growth due to delayed-unresolved court proceedings surrounding the Nevele Judgement case

  • Inefficient grid capacity at the middle and high voltage levels is expected to lead to long delays of the projects

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics July 2023

Renewable energy has experienced significant growth in the Netherlands over the past decade. Its share in the country’s energy mix has increased five times from 2012 to 2022, making up more than 50% of the total energy mix of 56.3GW, with 32.8GW of energy coming from renewable sources (IRENA, 2023). Despite the impressive growth, the Netherlands still heavily relies on fossil fuels and gas to meet its energy needs.

Installed Capacity: Status and Trend

Trend in Installed Onshore Wind Capacity

Source: Preqin Global Report 2023: Private Equity

In terms of harnessing wind energy on land, the Netherlands has been at the forefront of this movement, as evidenced by the country’s installation trends. However, the capacity addition has not been consistent. There were low installations at the beginning of the decade, followed by a sudden increase in 2019, which peaked at 1.1GW in 2021. This increase was due to the release of funds by the EU and the Dutch government to support onshore wind projects, the rise of subsidy-free corporate projects, and the renewables auction. Unfortunately, in 2022, the capacity dropped to 780MW, bringing the cumulative installed capacity to approximately 6.1GW. Nevertheless, this is still impressive compared to the yearly additions between 2013 and 2020 (IRENA, 2023). The setbacks were partly caused by the uncertainty created by the Nevele judgment case in 2021, which enforced a stricter environmental assessment process for wind farm approval (Windpower NL, 2023).

Demand Drivers

The Netherlands has set ambitious carbon neutrality targets, which were renewed after the election and formation of the new government in 2021. To achieve these targets, the country aims to reduce greenhouse gas emissions by at least 60% by 2030 and 80% by 2040 (Government of the Netherlands). As a result, renewable technologies need to be rapidly deployed to replace conventional sources, such as coal-based power by 2029 and nuclear power by 2033. To speed up the process, stringent efforts are required to accelerate approvals for onshore wind projects, which currently have a lead time of 1.5-2 years. As of 2022, 1.3GW of onshore wind projects are in the permitting stage (Wind Europe, 2023).

The Dutch government has allocated a budget for achieving its energy transition objectives. Among its plans is an investment of EUR 28 billion towards renewable energy generation (Euro News, 2023). In 2022, the government announced its intention to involve local communities in project approvals and seek their assistance in onshore wind project developments to reduce public opposition. In addition, the government has included new distance rules for onshore wind turbines in its coalition agreement to address noise pollution and health concerns (Norton Rose Fullbright, 2021). To achieve its goal of decarbonizing the energy sector by 2035, the government plans to convert gas power stations to hydrogen, connect wind farms to battery storage, and create offshore solar fields with a total capacity of 3GW. These policies aim to streamline the approval process for onshore wind projects and support energy storage development.

Market Opportunity

The Netherlands has taken significant steps towards climate neutrality policies as gas and coal prices have skyrocketed in Europe. To achieve its targets, the government has changed the SDE+ to SDE++ for Sustainable Energy Production and Climate Transition Stimulation, which grants subsidies to organizations generating renewable energy. The government has allocated a budget of EUR8 billion under the SDE++ scheme in 2023 for renewable energy growth, particularly for solar and wind energy. Onshore wind has significant potential to achieve climate targets and is estimated to add around 835 MW of new capacity in 2023 (Shftlimburg Netherlands, 2023).

The government’s contributions towards the industry have increased the viability of investments from corporates and energy developers. In addition, the Netherlands and Germany have the lowest cost of capital for utility-scale onshore wind projects, according to IRENA. Corporate buyers have shown interest in investing in the country through the PPA route. For instance, Google has signed a 10-year PPA deal with Eneco to obtain 153 MW from two new wind farms, Windpark Fryslân (nearshore-73.5MW) and Windpark Kroningswind (onshore-79.8MW) (DCD, 2023). This indicates that the onshore wind industry in the Netherlands has substantial prospects for unsubsidized projects from corporate buyers.

There is significant potential for progress in the repowering sector, which has already adopted onshore wind energy and now has many decommissioned turbines. In the Netherlands alone, around 80MW of wind power has been decommissioned as of 2022, making it the second highest in Europe after Germany (Wind Europe, 2023). This presents a sizable business opportunity for Original Equipment Manufacturers (OEMs) to tap into the repowering segment and replace decommissioned turbines with more advanced technologies that can increase installation capacities.

Integrating renewable installation and repowering capabilities with the electricity grid is becoming increasingly important. Considering the intermittent nature of renewable energy sources, the energy storage market has huge growth potential. Companies have already started to address this, with Roll-Royce announcing in November 2023 that it will build a 60MWh battery-based energy storage system, which is the largest battery storage project in the EU (PV Magazine, 2022). In a similar development, S4 Energy and ABB installed a hybrid battery-flywheel storage facility in the Netherlands in Q4 of 2022. The project features a 10MW battery system and a 3MW flywheel system (PV Magazine, 2022). With growing renewable energy projects and the need for better grid advancements, the potential of the energy storage market has yet to be fully realized, presenting a broad scope for exploration. It is estimated that between 29GW-54GW of energy storage will be required to support flexibility requirements in the country (Energy Institute, 2022).


Source: BNEF Global Wind Market Outlook

The onshore wind industry in the Netherlands, despite having ambitious goals and promising development opportunities, is facing regulatory uncertainty and policy changes that are expected to impact its growth prospects. The Netherlands Enterprise Agency’s new Onshore Wind Monitor predicts the installation of 835MW onshore wind capacity per year by 2023, but Bloomberg New Energy Finance (BNEF) projects only 736MW to be added this year. After 2023, the capacity addition is expected to stagnate, with an average of 325MW of onshore wind capacity to be added between 2024 and 2030. This could be due to the unresolved court proceedings surrounding the Nevele Judgement case and competition from the offshore wind sector.

The onshore wind industry’s overall outlook indicates a lack of growth in new installations due to prolonged disputes. Obstructions include increased policy focus and funding in offshore wind, local opposition, and the complexity of permit procedures. Increased concern about public health and local protests against onshore wind have also reduced its significance in the clean energy mix. In 2022, approximately 1.3TWh of projects were cancelled due to protests, which has impacted the government’s goal to reach 35TWh by 2030 (Energy Monitor, 2022). Such logjams are causing project delays and cancellations by local authorities, which poses a serious threat to the onshore wind market.

Despite these challenges, previous policies on onshore wind remain in force, indicating the market’s viability. The government aims to increase local inclusion in project approvals, which can further boost the segment. With increased government financing and assistance, such bottlenecks could be overcome to restore the Netherlands’ onshore wind market stature.