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Question 5

Decarbonising the North Sea: Dutch Offshore Wind

The Dutch government has set ambitious targets to reach 21 gigawatts (GW) of offshore wind capacity by 2030, aiming to supply approximately 75% of current Dutch electricity consumption. In the specialized North Sea offshore wind generation market, massive capital expenditure requirements and complex regulatory licensing have created a highly concentrated market structure.

While municipal consortia and small community-owned cooperatives are beginning to invest in near-shore micro-turbines, deep-water projects are dominated by a handful of multinational energy consortia. This high barrier to entry has raised concerns among energy watchdogs regarding pricing power and long-term competition in the Dutch wholesale electricity market.

Fig. 1 – Dutch offshore wind capacity supplier market share, 2024 (%)

OperatorMarket Share (%)
Ørsted31.5
Vattenfall22.5
Shell (CrossWind)16.0
Eneco11.5
Blauwwind Consortium7.5
RWE5.0
VentoLudens3.0
Others3.0

Refer to Fig. 1.

Calculate the five-firm concentration ratio in the Dutch offshore wind energy generation market.

[2]

Oligopoly Questions

  1. A Level
  2. /Economics
  3. /Oligopoly