Energy Product Derivatives - Netherlands

Netherlands

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$301.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.37% resulting in a projected total amount of US$391.90bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.29 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 1.15m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Netherlands is experiencing a shift in customer preferences towards more sustainable and environmentally friendly investment options. Customers are increasingly seeking derivatives tied to renewable energy sources such as wind and solar power, reflecting a global trend towards decarbonization and green energy investments.

In the Netherlands, there is a growing demand for Energy Product Derivatives that allow investors to participate in the country's ambitious renewable energy targets. This shift is driven by both regulatory requirements and consumer preferences for cleaner energy sources. As a result, there is an increasing number of derivatives products linked to renewable energy projects and technologies.

One of the key trends in the Energy Product Derivatives market in the Netherlands is the development of innovative financial instruments that enable investors to hedge against the volatility of renewable energy prices. With the increasing integration of intermittent renewable energy sources into the grid, there is a need for risk management tools that can help market participants mitigate price fluctuations and ensure stable returns on their investments. Moreover, the Netherlands' strategic location and advanced infrastructure make it an attractive market for Energy Product Derivatives linked to cross-border energy trading.

As a key player in the European energy market, the country offers opportunities for investors to access a diverse range of derivatives products that are influenced by regional supply and demand dynamics. Local special circumstances in the Netherlands, such as the government's support for renewable energy projects and the country's commitment to reducing carbon emissions, create a favorable environment for the development of the Energy Product Derivatives market. These factors contribute to the growing interest from investors in financial instruments that align with sustainable investment principles and support the transition to a low-carbon economy.

Underlying macroeconomic factors, such as the Netherlands' strong economic performance and stable regulatory framework, provide a solid foundation for the growth of the Energy Product Derivatives market. The country's focus on sustainability and innovation drives the demand for new financial products that cater to the evolving needs of investors looking to capitalize on the transition to a greener energy landscape.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.