News item | 18-10-2023 | 2:05 PM
Dutch households and companies are becoming more sustainable at a record pace and fossil fuels are making way for sustainable electricity. This brings the Dutch climate goals within reach for the first time, but the expansion of the electricity grid cannot keep up with the rapidly increasing demand for space on the grid. That is why the government and the grid operators are taking new measures to ensure that there is sufficient space in the future for housing construction, economic development and the sustainability of households, mobility and companies can continue as much as possible. These measures are aimed at expanding the power grid more quickly, making better use of the current space on the grid and shifting the demand for electricity outside peak hours.
Demand is growing faster than expanding the power grid
Households are installing solar panels, heat pumps and charging stations for electric cars and companies are switching away from gas. This has accelerated, partly due to high energy prices. The grid operators announced today that the demand for space on the electricity grid has grown explosively and the grid is almost full in almost all of the Netherlands.
Companies that want a new or heavier connection will be put on a waiting list and without intervention, the power grid in Utrecht, Gelderland and Flevoland will be overloaded at peak times from 2026. The government and grid operators are therefore taking extra measures to ensure that there is sufficient space on the grid for new homes, households can continue to become more sustainable and to limit waiting lists for companies where possible. The government is keeping a finger on the pulse to see whether there remains a perspective for action for all sectors.
Build faster
The grid operators are doing everything they can to expand the electricity grid as quickly as possible. Annual investments will double from €4 billion to €8 billion annually from 2025. But despite the significant investments, the demand for space is growing faster than the expansions of the grid. The government therefore wants to accelerate the expansions. This includes proactively ensuring that land is available for the construction of the electricity grid and by shortening legal procedures and licensing. For example, by designating certain extensions of the network as ‘important social interest’ in order to potentially shorten the procedure by 1.5 years.
Make better use of the electricity grid
The power grid is only full during peak times, when many companies and households use a lot of electricity at the same time. For example between 4 and 8 o’clock in the evening. There is still a lot of untapped potential in reducing peaks with congestion management. Grid operators enter into contracts with major consumers to temporarily use less electricity at peak times if necessary. This allows more companies to be connected. This approach is now being improved by grid operators and regulator ACM and made more attractive for companies to participate. In addition, a participation obligation is being further elaborated. This means that large consumers who use a lot of electricity make an offer to the grid operator at which price they can purchase a certain amount of less electricity during peak times.
The government and the grid operators also want to proactively start auctions (flexibility tenders) from next year that will allow companies such as a battery operator to offer space on the power grid at strategic locations for a longer period of time during peak times.
Encourage flexibility of companies and households
The cabinet states €166 million available to stimulate energy hubs. Companies also coordinate their electricity supply and demand locally, so that less space is required on the power grid. Next year it will also be possible for companies to share the available space on the network with each other through group contracts. This way, a company can use space on the power grid that another company does not need at that time.
Smart, controllable heat pumps and charging stations will become the norm in households in the future. This reduces the load on the power grid at peak times and leaves sufficient room for making homes more sustainable. To this end, the government is committed to the development of new standards and certification. For public charging stations, flexible charging will become a standard part of contracts with municipalities.
Minister Jetten: “Households and companies are becoming more sustainable at a record pace. That is good news, but it also puts enormous pressure on our power grid. Despite the significant investments by grid operators and previous measures, the power grid is reaching its limits in more and more places. Without intervention, this will have serious consequences for our sustainable ambitions and economy. That is why we are now taking new measures that go off the beaten track to accelerate the expansion of the power grid and create more space.”