Grid congestion is a growing problem in the Netherlands and is putting pressure on the Dutch energy transition. The power grid cannot keep up with the rapid growth of renewable energy and the increasing electrification of industry, transport and households. Companies that want to increase sustainability or expand are increasingly being told that insufficient grid capacity is available. Despite investments in grid expansion and changes in laws and regulations, the pressure on the power grid continues to increase.
This reports ABN AMRO in its third report on grid congestion. The report outlines the current state of affairs, bottlenecks and possible solutions. Grid congestion occurs when the demand for electricity or the supply of generated power exceeds the available grid capacity. There are two main forms:
- Physical grid congestion: The grid cannot physically transport more power because cables, transformers or substations become overloaded. This is particularly prevalent in areas with a lot of solar and wind energy, where the power generated cannot always be purchased.
- Administrative grid congestion: Companies have reserved more capacity than they actually use, unnecessarily blocking scarce grid space. Grid operators are trying to address this oversizing, but companies are often reluctant to reveal their reserved capacity for fear of not being able to accommodate any future growth.
A complicating factor is that the energy transition is making power supply more unpredictable. For instance, solar panels only supply power when there is sunlight and wind turbines if there is wind. This leads to peaks and troughs in the availability of renewable energy. At the same time, traditional power plants are being phased out. This combination makes balancing supply and demand complex.
New legislation should provide more flexibility
The new Energy Act, which came into force on 1 January 2026, should speed up the transition to a more sustainable energy system. For instance, the new legislation allows for more flexible contracts such as alternative transmission rights (ATRs), which allow companies to purchase power only at specific times. The legislation also provides opportunities for group transmission agreements (GTOs), which allow companies to jointly share capacity and thus use scarce grid space more efficiently. The Consumer & Market Authority (ACM) can now prioritise socially important projects such as housing and healthcare.
However, companies and grid operators face obstacles. For instance, GTOs are complex to set up and require intensive cooperation between companies, which is often lacking. In addition, grid operators are not yet always able to apply the new regulations quickly, partly due to staff shortages and complicated licensing procedures.
Energy hubs
To reduce grid congestion, several solutions are under development. One example are energy hubs. An energy hub is a partnership between companies in the same business park, where they jointly purchase power and coordinate their consumption. ABN AMRO points to several examples, including the EMCU energy hub in Utrecht. Five companies in the Lage Weide business park work together under one GTO. By cleverly steering their power consumption, they stay within their joint capacity limit.
Another example is Energie Coöperatie Amsterdamse Haven (ECAH). Companies in the Amsterdam port match their consumption to the available grid capacity using an Energy Management System (EMS). In cooperation with grid operator Liander, they can sometimes still get extra capacity.
ABN AMRO points to several benefits of energy hubs, including more efficient use of grid capacity, achieving cost savings and increasing flexibility. However, there are also challenges. For instance, setting up an energy hub requires legal, technical and organisational coordination. In addition, energy hubs often need a power coupler, which is an independent party that coordinates cooperation. This role is crucial, but its funding is often uncertain. Finally, insurers are reluctant to cover the risks of energy hubs, e.g. in case of exceeding joint capacity.
Batteries and generating your own energy
Companies facing limited grid capacity are increasingly turning to proprietary energy generation and storage solutions to reduce their dependence on the overloaded grid. One example is Ansova Staalcoating in Doetinchem, which has invested in a battery system with a capacity of 1.5 megawatt hours (MWh) to handle peaks in power demand. By doing so, the company not only reduces its dependence on the public grid, but also realises significant cost savings.
Oegema Transport is applying a similar strategy by using solar panels and batteries to charge electric trucks at night, when power prices are lower. This approach offers companies the advantage of being able to manage their own energy, leading to less dependence on the central grid and lower energy costs as power can be purchased at times when it is cheaper.
At the same time, there are some drawbacks to these solutions. For instance, ABN AMRO points to significant initial investment costs for batteries and solar panels, which can be a barrier, especially for smaller companies. In addition, the storage capacity of batteries is limited, so companies may still remain dependent on the regular power grid in periods of high demand.
Cable pooling and flexible contracts
In cable pooling, several companies make joint use of one connection, making more efficient use of the available grid capacity. This approach is particularly suitable for companies whose power profiles complement each other, such as an organisation that mainly operates during the day and a company that uses a lot of power at night.
A concrete example pointed out by ABN AMRO is the Kempisch Ondernemers Platform (KOP) in Bergeijk, where 14 companies work together within an energy hub. By jointly returning 30 to 40 per cent of their individual capacity to grid operator Enexis and using smart agreements and a shared battery, these companies still manage to find room for growth, despite the limitations of the power grid.
Besides cable pooling, flexible contracts, such as time-block agreements, allow companies to purchase power only at predetermined times. These forms of contracts help reduce peaks in grid usage, easing pressure on the power grid. By better matching power purchase to available capacity, companies can not only optimise their own energy costs, but also contribute to a more stable and efficient energy system.
Crucial role to be played by grid operators
ABN AMRO calls grid operators such as TenneT and regional parties such as Liander, Stedin and Enexis crucial in solving grid congestion. For instance, they expand the electricity grid and optimise existing capacity through technological modifications. They also encourage companies to use power flexibly, for instance by avoiding peak moments.
At the same time, grid operators face challenges. These include a shortage of technical staff, slow permit processes and lack of transparency from companies about their power needs.
Central direction and cooperation
To structurally address grid congestion, ABN AMRO cites central direction and cooperation between governments, grid operators and companies as essential. Power couplers can play a key role in this. In addition, acceleration of permit procedures is needed, possibly through a crisis law.
Innovation in contracts and technology such as AI and smart energy management systems is helping to better tune power consumption. Better data sharing between companies and grid operators is also crucial, although practical implementation still needs attention, according to ABN AMRO.
Technical, organisational and legal challenges
Grid congestion is a complex problem that poses not only technical but also organisational and legal challenges, ABN AMRO concludes in the report. Although progress has been made with new legislation and innovative solutions such as energy hubs and battery storage, implementation lags behind the growing need. Cooperation between companies, grid operators and governments is essential if the energy transition is not to founder and if the Dutch economy is to continue to grow in a sustainable direction.
Grid operators also have a lot to learn about grid usage and how risk margins are planned and set. The more data grid operators can and are allowed to process, the more efficiently grid space can be used.
