Policy analysis renewable energy technology
The Netherlands has the ambition to be climate neutral by 2050. This requires a sharp increase in energy generation from renewable sources and energy technologies, such as wind turbines, solar panels and batteries. However, the Netherlands is currently dependent on other countries for renewable energy generation: this requires an internationally focused approach.
Background
The energy technologies and products needed for sustainability are often made from critical raw materials (metals) and other technical components. For production and supply, the Netherlands relies heavily on countries within Europe (France, Germany, Italy), but increasingly also on countries outside Europe, such as China. China, for instance, has almost a monopoly on the production and processing of metals and related materials.
In recent years, it has also become clear that global crises and geopolitical tensions can negatively affect the security of supply of needed products. Think of the corona crisis and the wars in Ukraine and Gaza. Also, the increasing demand for primary raw materials clashes with the Dutch ambition to achieve a fully circular economy by 2050 and to halve the use of primary abiotic raw materials (minerals, metals and fossil fuels) by 2030.
The Dutch Environmental Assessment Agency (PBL) therefore asked Ecorys to conduct a policy analysis on potential measures to accelerate the circular transition of renewable energy technologies. Our research aimed to provide insight into what 1) are the main bottlenecks hindering the transition to circularity for the three products (wind turbines, solar panels and batteries) and 2) what policy options can counteract these obstacles. Finally, we complemented the study with a chain analysis to determine the import dependency of this product group.
Key findings
Our research shows that the transition to a circular economy is not moving fast enough for renewable energy technologies (wind turbines, solar panels and batteries). This is mainly because manufacturers of these energy technologies focus mainly on energy efficiency rather than life extension and material efficiency. This results, for example, in larger wind turbines and early replacement of solar panels without attention to circular design, repair or recycling.
We recognise the following bottlenecks:
- Design and lifespan: Circular design is not sufficiently encouraged, and products often have a shorter economic than technical lifespan, partly due to permits and subsidy conditions. This inhibits commitment to life extension and reuse.
- Recycling capacity: There is a capacity deficit in high-quality processing for critical raw materials. This is due to the design of products (e.g. bonding) and the limited reusability of end-of-life materials, which makes processing uneconomic.
- International dependence: The EU and the Netherlands rely heavily on imported raw materials and finished products, especially from outside Europe. The chains are not transparent, making repair, reuse and recycling difficult.
Recommendations
- Policy adjustments: Encourage circular solutions by aligning subsidies and permits with longer technical lifetimes, circular criteria (such as repairability) and innovative recycling methods.
- Develop recycling capacity: Invest in high-quality processing for batteries, solar panels and wind turbines, with a focus on critical raw materials. Create a long-term vision and engage with the recycling sector.
- EU cooperation: Advocate for stricter regulations at EU level that mandate circular products and encourage sustainable production and recycling within Europe.
- Targeted strategies: Develop a transition path for each product group (wind turbines, solar panels, batteries) and align with existing national and European policy goals. Ensure synergy between energy transition and circularity goals.
It is important to offer a long-term perspective to market players so that they can invest in circular innovations. A combination of incentives, normative and pricing measures can accelerate the circular transition.
The full report (in Dutch) is available here.

15 November 2024
3 minute read
Sectors
Key Experts
Karla Ritsema
Senior Consultant
Yoeri Dijkhof
Consultant