The Grid Congestion Crisis
The Netherlands faces a paradoxical challenge in its energy transition: the more successful we are at deploying renewable energy, the more we strain our electricity infrastructure. This phenomenon, known as grid congestion ("netcongestie"), has emerged as the primary bottleneck in our renewable energy ambitions. Ahead of other markets in Europe.
In large parts of the country, the electricity grid has reached its capacity limits. For energy producers and consumers, this means it has become increasingly difficult to obtain new or larger connections to the electricity network (Monitor RES 2024). The consequences are far-reaching: delayed housing developments, postponed business expansions, and—critically for our energy transition—stalled renewable energy projects.
However, the solution may not lie in simply expanding the grid, but in fundamentally rethinking how we organize our energy system through local energy hubs.
The Scale and Impact of Grid Congestion
According to the Monitor RES 2024, grid congestion is now affecting almost every region in the country. The impact varies by location—in South Holland and Zeeland, primarily energy consumption is limited, while in Groningen, Friesland, Drenthe, and Overijssel, the limitations differ by area.
This widespread congestion is having a profound effect on our renewable energy ambitions. The Monitor RES 2024 reports that "the pipeline of new solar and wind energy projects is drying up." While existing renewable energy capacity continues to grow, the development of new projects is increasingly hampered by the inability to connect to the grid.
Why Traditional Grid Expansion Cannot Solve the Problem Alone
The conventional response to grid congestion is to expand the infrastructure. Indeed, the electricity network will need to be reinforced and expanded throughout the country in the coming years. However, this approach alone is insufficient for several reasons:
1. Timing challenges: Grid expansion projects typically take 5-10 years to complete. According to the Monitor RES 2024, approximately a quarter of the planned investments may not be completed before 2030 due to lengthy permit procedures, material shortages, and personnel shortages.
2. Spatial constraints: As noted in the Nationaal Plan Energiesysteem (NPE), "The future energy system will place a noticeably larger claim on space, above ground and underground, on land and at sea—alongside all kinds of other growing space claims."
3. Economic inefficiency: Building infrastructure to accommodate peak capacity that is rarely used is economically inefficient.
As the NPE aptly describes it, we are "renovating while the shop remains open" ("verbouwen terwijl de winkel openblijft"). We must transform our energy system while ensuring continuous energy supply.
The Emergence of Local Energy Hubs
The NPE introduces a compelling alternative approach: the development of local energy hubs. As described in the plan, "The old energy system is centrally organized. Generation came from larger coal or gas plants and was transported to places where it was used. In the future, a large part of the energy will still be centrally generated at sea or in the coastal region and transported to land, but part will also be generated decentrally, through solar and wind parks, rooftop solar, geothermal energy, and other decentralized sources."
Energy hubs represent a new paradigm in our energy system. Rather than relying solely on centralized generation and distribution, they create local ecosystems where energy is generated, stored, and consumed within a defined area. By intelligently connecting local generation, storage solutions, and flexible consumption patterns, these hubs can significantly reduce dependence on the central grid.
The NPE explicitly supports this approach: "By smartly coupling decentralized generation with decentralized use, the central energy system can be relieved. The government therefore focuses—in addition to the development of the central energy system—also on smart decentralized energy systems, for example in the form of energy hubs."
The Systemic Benefits of Local Energy Hubs
Energy hubs offer several key advantages:
1. Grid relief: By balancing local supply and demand, they reduce peak loads on the grid, alleviating congestion without requiring massive infrastructure investments.
2. Enhanced resilience: By reducing dependence on the central grid, they can continue to function during outages or supply disruptions.
3. Higher renewable integration: By using energy when and where it's produced, energy hubs minimize transmission losses and maximize the utilization of variable renewable sources.
4. Cost efficiency: The NPE highlights that "by limiting transport, transport losses are limited. That is why the government chooses to organize supply and demand close to each other where possible."
5. Local value creation: Energy hubs "offer opportunities for citizens and businesses, such as the possibility of (financial) participation to benefit from benefits (such as a lower energy bill and more control) and social advantages."
Commercial Properties as Natural Energy Hubs
Commercial properties are ideally positioned to function as energy hubs. They typically have substantial roof space and parking areas that can be utilized for energy generation without compromising their primary functions. Their energy consumption patterns are relatively predictable, making it easier to balance supply and demand.
Solar carports represent a particularly effective component of this approach. By integrating solar panels with parking facilities, they generate renewable energy while maintaining the parking function. This multifunctional use of space aligns perfectly with the NPE's emphasis on "looking at whether energy use for energy is possible in combination with other functions."
The Monitor RES 2024 notes that "with a more integrated approach to the regional energy system, opportunities for synergy between energy generation, nature, and landscape" can be realized. Solar carports exemplify this integrated approach, combining energy generation with practical land use.
Policy and Regulatory Developments
The regulatory landscape is evolving to support the development of energy hubs. The NPE announces the launch of a "Program Stimulating Energy Hubs" that will "realize multiple energy hubs by locally supporting their development, by developing and exchanging knowledge, and by removing bottlenecks where necessary."
Additionally, the new Energy Act is "aimed at facilitating bottom-up initiatives whereby different forms of the energy system can gain more possibilities locally." This includes recognition of energy communities and the possibility of energy sharing.
The Landelijk Actieprogramma Netcongestie (LAN) is executing numerous actions that enable and stimulate flexible use of the electricity grid. These regulatory changes create new opportunities for commercial property owners to participate actively in the energy system.
Practical Steps Toward Becoming a Local Energy Hub
For commercial property owners interested in developing energy hubs, several practical steps can be considered:
1. Energy generation: Install renewable energy systems optimized for local consumption patterns.
2. Storage solutions: Implement battery storage to capture excess generation for use during peak demand or low production periods.
3. Smart energy management: Deploy intelligent systems that can monitor, predict, and optimize energy flows.
4. Flexible consumption: Identify processes or systems that can adjust their energy use based on availability.
5. Collaboration: Explore partnerships with neighboring properties to create larger, more efficient energy communities.
Multifunctional solutions like solar carports can be particularly valuable in this context. They generate renewable energy while maintaining the property's parking function, potentially incorporating water management features, and creating opportunities for biodiversity enhancement—all without requiring additional land.
Conclusion: From Challenge to Opportunity
Grid congestion represents one of the most significant challenges to our energy transition, but it also serves as a catalyst for innovation. By reimagining our approach to energy—shifting from a centralized, one-way system to an integrated network of local energy hubs—we can transform this challenge into an opportunity.
For commercial property owners, the message is clear: the future energy system will reward those who take an active role. By exploring the potential of your property as an energy hub—generating, storing, and intelligently managing energy flows—you can create value while contributing to a more sustainable energy future.
References
EZK (2023). Nationaal Plan Energiesysteem. Den Haag: Ministerie van Economische Zaken en Klimaat.
PBL (2024). Monitor RES 2024. Een voortgangsanalyse van de Regionale Energiestrategieën. Den Haag: Planbureau voor de Leefomgeving.
