Investments in the Dutch onshore wind energy industry: A review of investor profiles and the impact of renewable energy subsidies

Abstract

The 2020 renewable energy targets have stimulated the debate on the efficacy of policy schemes. Discussion on the efficacy of these schemes has largely been on the growth in the share of renewable energy, and less on the alignment of policies to the needs of investors.However, research in this field has emphasized that 'who is investing' is as relevant as 'how much is invested'. This study aims to identify and better understand 'who is investing', by researching more than 1,000 investments by 646 firms that produce electricity with Dutch onshore wind energy. These firms received renewable energy subsidies under Dutch policy schemes between 1996 and 2013. The regression results highlight the type of investors that invest more in wind energy. The results show that firms with a higher wind energy capacity are firms that have more investment experience; are latecomers to the wind industry; have an industrial background in the electricity or wind industry; are medium-or large-sized and are limited liability companies. Data on investments, combined with a document analysis, show that changes in policy schemes affect the perceived risks and expected returns of investors, and that these changes influence the amounts invested and the type of investors in wind energy.

Which factors influence the decisions of renewable energy investors? Empirical evidence from OECD and BRICS countries

“…Most of the research focuses on investor behavior as a barrier to RE investments (Niesten et al 2018 ; Salm et al 2016 ; Nasirov et al 2015 ; Leete et al 2013 ; Masini and Menichetti 2012 ; Masini and Menichetti, 2010 ; Wüstenhagen et al 2007 ). Nasirov et al ( 2015 ) explore the barriers to the adoption of RE sources from the investor’s perspective.…”

The new “windscapes” in the time of energy transition: A comparison of ten European countries

“…Dutch policies, on the other hand, have often been seen as being too variable, given the frequent changes in the support system for RES. For this reason, the political system is considered to be unreliable in this matter (Breukers, 2007), and this has had a serious impact on investment in Dutch wind power (Niesten et al, 2018). These circumstances have reinforced the persistent and strong internal opposition (van Os et al, 2014).…”

Exploring Wind and Solar PV Generation Complementarity to Meet Electricity Demand

“…On the other side, this effect leads to a reduction in producers profitability ("self-cannibalization effect") [62]. This situation may lessen the incentive to invest in new capacity deployment, preventing to achieve high shares of VRE generation [3]. Thus, adequate policy schemes are needed to promote the nearly 100 % renewable power system without increasing the bill costs paid by consumers [1,3,9].…”

“…Renewable energy sources (RES) continue to grow and gain increased relevance in modern electric power. The main driver of this growth was based on subsidies, typically, and feed-in tariffs that aim to reduce the air pollution through the replacement of fossil energy sources by clean and safe RES [1][2][3]. Within the different types of RES, wind and solar photovoltaic (PV) are the most promising technologies to jointly produce a large share of renewable electricity needed to reach the EU's 2030 ambitious targets [4,5].…”