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NL: Glasshouse horticulture energy use rebounds in 2023, sector does become more economical

As the greenhouse horticulture sector was able to resume its original course in terms of cultivation and production, energy use and CO2 emissions of Dutch greenhouse horticulture increased in 2023 compared to 2022. This was because, after the first quarter of 2023, energy prices returned to a more moderate level after a turbulent period of one-and-a-half years of very high energy prices. Research by Wageningen Economic Research shows that the increase in energy use and CO2 emissions of Dutch greenhouse horticulture in 2023 did not lead to higher levels in the years before 2022.

Energy use in greenhouse horticulture increased in 2023, especially electricity use increased
A number of effects strongly influenced the development of energy use by Dutch greenhouse horticulture in 2023. These effects came as, after the first quarter of 2023, energy prices returned to a more moderate level after a turbulent period of one and a half years of very high energy prices. Due to these more moderate energy prices and more perspective in the sales of grown products, greenhouse entrepreneurs largely repackaged their original cultivation strategies, and extensification of cultivation (less heating and less lighting resulting in lower production) was largely reversed. However, a significant part of this period's selective use of energy (including energy conservation) remained intact, so the increase in energy use (+14%) did not reach pre-2022 levels.

Increase in CO2 emissions, but still far from pre-2022 levels
The increase in energy use due to rebound effects in 2023 also drove CO2 emissions from greenhouse horticulture. The fact that CO2 emissions increased in 2023 compared to 2022 (+5%) but did not reach pre-2022 levels was due to underlying factors. Besides the increase in energy use, the rise in electricity sales with natural gas CHP also had an upward effect. Decreases in acreage, increases in electricity purchases slight growth in renewable energy deployment, and purchases of non-sustainable heat from third parties dampened the increase.

Use of non-CO2 energy sources increased in 2023
Despite renewable energy use (+1%) and heat procurement (+9%) increasing only slightly in 2023, the share of energy use from non-CO2-emitting sources for greenhouse horticulture increased compared to 2022. This was mainly because electricity purchases (for lighting) rebounded more strongly (+60%) than total energy use increased (+8%). On balance, the share of energy from non-CO2 sources for greenhouse horticulture within total energy use came to over 28% in 2023.

More electricity, but growth dampened by LED light application
Due to rebound effects following, among other things, moderation in energy prices, electricity production, purchase, sale, and use increased on balance in 2023 compared to 2022, but did not yet reach pre-2022 levels. Electricity use (+30%) and electricity purchase (+60%) increased relatively strongly, and the increase in electricity production (+7%) and electricity sales (+7%) were less pronounced. The increase in use, purchase, and partial production came from the repackaging of market-oriented cultivation and the recovery of the use of lighting in this regard. The increase was cushioned by the growth in the use of LED systems for lighting instead of high-pressure sodium lamps.

Wageningen Economic Research produces the Energy Monitor of Dutch Glasshouse Horticulture on behalf of the Glasshouse Horticulture Sector Knowledge Foundation and the Ministry of Agriculture, Fisheries, Food Security and Nature.

Source: WEcR

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