This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 6/28/2019

Overview

Currently, several shifting factors influence the rapidly changing Belgian energy market, including the continuing EU-wide process of deregulation and liberalization; the incentives to develop renewable energy sources; and the changing structure of the country’s energy distribution. U.S. companies wanting to export to the Belgian energy market must be aware and take into account these uncertain or changing factors, which will determine the potential for exports of relevant goods and services to this market.

Except for some limited renewable energy potential, Belgium has no natural energy sources. In 2018, the net importation (=importation –exportation) of electricity covered roughly 20% of the total consumption of net electricity in Belgium. The country imports all its natural gas and petroleum requirements for its energy needs, amounting to almost 35,000 ktoe (kilo-ton oil equivalent) in 2017. 3.024 tons per habitant of primary energy and 21.64 tWh of net electricity are imported each year. In 2018, the final consumption of electricity amounted to 85.07 tWh. It is divided between different sectors: industry (32%), transport (27%), housing (25%), services (14%), and agriculture (approximately 2%)
 

 Generation for 2018 in GWhIn percentage (%)
Total net generation69,093.02 100 %
Non-Renewable Net generation53,478.54 77.40% (of total net generation)
Nuclear net generation26,995.58  50.48%
(of the non-renewable net generation)
Non-renewable hydro net generation983.22 1.83% 
(of the non-renewable net generation)
Of which hydro pure pumped storage983.22  
Fossil fuels net generation24,313.3745.46%
(of the non-renewable net generation)
Of which Coal-derived gas2,145.66  
Of which Fossil Gas22,111.14  
Of which Fossil Hard coaln.a 
Of which Fossil Oil56.57  
Non-renewable Waste net generation974.35 1.82%
(of the non-renewable net generation)
Other non-renewable net generation212.020.396%
(of the non-renewable net generation)
Renewable net generation15,614.48
22.60% (of total net generation) 
 
Wind net generation7,092.83 45.42%
(of the renewable net generation)
Of which Wind offshore3,371.13  
Of which Wind onshore3,721.70  
Solar net generation3,488.9822.34%
(of the renewable net generation)
Bio net generation3,554.61 22.76%
(of the renewable net generation)
Of which Biomass2,721.06  
Of which Biogas833.55  
Geothermal net generation n.an.a
Renewable Waste net generation1,151.547.37%
(of the renewable net generation)
Renewable Hydro net generation255.93 1.64%
 (of the renewable net generation)
Of which Hydro Pure storage 0 
Of which Hydro Run-of-river and pondage255.93  
Of which Hydro mixed pumped storage (renewable part) 0 
Of which Hydro Marine (tidal/wave) 0 
Other renewable net generation70.59  0.45%
 (of the renewable net generation)
Non identified net generation00.00%
 (of the total net generation)
Total Hydro net generation1,239.15 1.79%
 (of the total net generation)
Consumption of pumps1,347.91  
Transmission losses, mainly 380kV & 220kV n.a 
Imports21,635.91  
Exports4,309.40  
National electrical consumption85,071.62  




















































































Source: ENTSOE (European Network of Transmission System Operators for Electricity)

Leading Sub-Sectors

Generation, Transmission, and Distribution of Electricity

Generation, transmission, and distribution activities for the electricity system have been separated and deregulated with a goal to increase grid efficiency.  However, this has not yet led to a satisfactory level of competition, mainly among distribution firms.  The federal and regional governments will most likely continue to create incentives to improve the efficiency of market forces on the industry. While the various government bodies have persistently warned against a likely shortage of Belgian electricity, the industry itself seems reluctant to invest in relevant infrastructure to meet the market’s need. Key factors for this are the inability to pass along costs to rate payers, limited cross-border network capacity impairing exports of excess production, uncertainties with respect to environmental policies, the phasing out of the civil nuclear electricity program, and the market behavior of the incumbent utility Engie-Electrabel. U.S. firms can therefore expect opportunities in those areas when some of these bottlenecks are removed.

Emissions-controlling Measures and Renewable Energies

Belgium is committed to lowering its CO2 output under the Kyoto Protocol.  Several studies made specifically for the Belgian market have shown that a wide approach will be needed to attain the national emissions-reduction targets.  These comprise a mixture of consumption reduction, green/ renewable technologies, and investments in cleaner, more efficient production facilities.

In mid-May of 2019, a Luxembourg-based asset management company BTK announced that it had plans to open four new gas power plants in the cities of Vilvorde and Langerlo in Flanders by 2023. These gas power plants are planned to produce 870 MW each, be fueled by Qatari liquid natural gas (LNG) as part of a contract with Qatargas, and be operationally managed by EG Luxembourg. Studies so far conducted believe the plants will not require large technical investments, and more studies are being done on linking the potential gas plants in Vilvorde and Langerlo.

Some parties suggest the old plants’ replacement with more modern versions, which would serve the purpose of capacity expansion as well as lowering the country’s output of CO2 and other pollutants. Retro-fitting these facilities with pollution-mitigating devices could also present opportunities for U.S. firms.

Further investments come from large industrial sites active in the (petro) chemical industries that have a focus on co-generation. For example, ExxonMobil has just commissioned co-generation facilities at its Antwerp refinery that generate 125 MW of power; they will cut CO2 emissions by 200,000 tons a year.  Given the importance of the chemical industry in Belgium, similar investments can be expected from other companies.

Many smaller businesses have invested in renewable energies given the advantages of using electricity from their own sources and the incentives proposed by the government (these incentives are now largely being phased out). Distribution centers and other businesses with large surface areas that allow the installation of wind turbines and/or photovoltaic cells are driving this market.

According to ENTSOE data, the volume of renewable energy production, increased by 7.89% from 2017 to 2018 while nuclear energy production increased to reach 50.48% of the total net generation. However, it is expected that, by 2050, renewable energy sources will cover almost two thirds of the final energy consumption in transport, between 26 and 38% in heating and cooling, and between 39 and 46% for electricity production.

Finally, the European Union has set up a strategic plan for 2020 in order to increase the proportion of renewable energy in the final consumption of energy within the EU.  Each member state has its own objective calculated based on the potential of renewable energy production and economic performance. Nevertheless, Belgium is one of countries with the least proportion of renewable energy with 7.9%. The 2020 objective for Belgium is 13%.  This plan has been renewed for 2030, with EU member states having agreed to reach a minimum of 27% of renewable energy by that time.

Maintenance and Provision of Spare Parts

Despite economic uncertainties and relatively low investments, maintenance and repairs to facilities are needed, in particular in the secondary (transforming) sector that is well represented in Belgium. Opportunities for small equipment manufacturers specializing in process control and similar equipment can find a market in Belgium, especially when working through an effective, well-established distributor.
 

Main Trade Shows:
POWER-GEN Europe & Renewable Energy World, November 12th-14th, 2019, Paris, France
European Utility Week, November 12th-14th, 2019, Paris, France

Web Resources
Belgian Regulator for Gas and Electricity 
Belgian Federal Public Service for Energy
European Commission Statistics Department for Energy
APERE - Belgian Association for the Promotion of Renewable Energies
ENTSOE – European Network of Transmission System Operators for Electricity 
Federal Planning Bureau of Belgium

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.