Wind and solar cuts cost millions of cubic meters of gas savings

If solar panels and wind turbines were not switched off, the Netherlands could save 350 million cubic meters of gas in the second quarter of 2024, data from climate policy platform Energieopwek.nl shows. This amount of gas would be enough to heat all the buildings in The Hague.

As renewable energy production grows, so too do the number of hours with zero or negative electricity prices. The platform reports that there have been 286 hours since July 1. When more electricity is produced than needed — and can’t be exported or stored — prices drop to zero or below. So electricity producers are cutting back on production, turning off solar panels and wind turbines, because the grid can’t handle that much production and they can’t make money.

Growing excess

According to Energieopwek.nl’s models, for every hour with negative or zero prices, an average capacity of 6 gigawatts of renewable energy is deployed. This means that in the second quarter of 2024, more than 1,700 GWh of green electricity will be lost, which could have been used if more batteries and electrolyzers had been installed to convert electricity into hydrogen.

But the amount of “idle capacity” is only likely to increase as new wind and solar capacity is added in the coming years. At the same time, electricity demand is not expected to grow as quickly. Exports of sustainable energy will also become less available. Foreign countries are also investing in sustainable generation themselves.

Green hydrogen production costs in the Netherlands exceed expectations, TNO study shows

A recent investigation by the Netherlands Organisation for Applied Scientific Research (TNO) revealed that the cost of producing green hydrogen in the Netherlands could exceed 13 euros per kilogram, higher than previous estimates.

Renewable energy continues to grow

Renewable energy production also rose in June. It was 9% higher than in the same month last year, as more wind turbines were connected to the grid than last year. Onshore wind generated 15% more electricity, while offshore wind generated 35% more.

Although more solar panels will be connected to the grid in 2024, this increase did not translate into more energy, as June was less sunny than last year. According to the Netherlands Meteorological Institute, June 2024 saw an average number of sunny hours.

Overall, the share of electricity generated from renewable sources was 64% in June, up from 56% last year. However, including the mitigation effect, this share drops to around 60%.