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    Home»Earnings»Netherland’s renewables drive putting pressure on its power grid
    Earnings

    Netherland’s renewables drive putting pressure on its power grid

    onlyplanz_80y6mtBy onlyplanz_80y6mtOctober 16, 2025No Comments7 Mins Read
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    Netherland's renewables drive putting pressure on its power grid
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    John LaurensonBusiness reporter, RotterdamAFP by way of Getty ImagesThe Netherlands has raced to modify to wind and photo voltaic powerIn a Dutch authorities TV marketing campaign referred to as “Flip the Change” an actress warns viewers about their electrical energy utilization.”Once we all use electrical energy on the identical time, our energy grid will get overloaded,” she says. “This could trigger malfunctions. So, use as little electrical energy as potential between 4 and 9.”It’s the signal that, in one of many most-advanced economies on the planet, one thing has gone fallacious with the nation’s energy provide.The Netherlands has been an enthusiastic adopter of electrical automobiles. It has the very best variety of charging factors per capita in Europe.As for electrical energy manufacturing, the Netherlands has changed gasoline from its giant North Sea reserves with wind and photo voltaic.A lot in order that it leads the best way in Europe for the variety of photo voltaic panels per individual. The truth is, multiple third of Dutch houses have photo voltaic panels fitted. The nation can be aiming for offshore wind farms to be its greatest supply of vitality by 2030.That is all good in environmental phrases, however it’s placing the Dutch nationwide electrical energy grid beneath monumental stress, and lately there have been various energy cuts.The issue is “grid congestion”, says Kees-Jan Rameau, chief government of Dutch vitality producer and provider Eneco, 70% of whose electrical energy era is now photo voltaic and wind.”Grid congestion is sort of a site visitors jam on the facility grid. It is attributable to both an excessive amount of energy demand in a sure space, or an excessive amount of energy provide put onto the grid, greater than the grid can deal with.”He explains that the issue is that the grid “was designed within the days after we had only a few very giant, primarily gas-fired energy vegetation”.”So we constructed a grid with very massive energy traces near these energy vegetation, and more and more smaller energy traces as you bought extra in the direction of the households.”These days we’re switching to renewables, and which means there’s a whole lot of energy being injected into the grid within the outskirts of the community the place there are solely comparatively small energy traces.”And these small energy traces are struggling to deal with all of the electrical energy coming in from wind generators and photo voltaic panels scattered across the nation.AFP by way of Getty ImagesMore than one in three Dutch houses has photo voltaic panelsDamien Ernst, professor {of electrical} engineering at Belgium’s Liege College, is one among Europe’s main consultants on electrical energy grids. He says it’s an costly drawback for the Netherlands to unravel.”They’ve a grid disaster as a result of they have not invested sufficient of their distribution networks, of their transmission networks, so they’re dealing with bottlenecks all over the place, and it’ll take years and billions of {dollars} to unravel this.”Prof Ernst provides that it’s a Europe-wide subject. “We now have an infinite quantity of photo voltaic panels being put in, and they’re put in at a price that’s a lot, a lot too excessive for the grid to have the ability to accommodate.”At Eneco’s headquarters in Rotterdam, Mr Kees-Jan Rameau highlights a big management panel that the corporate calls its “digital energy plant” and “the mind of our operations”. It’s used to assist steadiness the grid, avoiding blackouts.When electrical energy era is simply too excessive throughout the Netherlands, it allows Eneco to show wind generators out of the wind and switch off photo voltaic panels.As for when demand for electrical energy is simply too excessive, it lowers the facility to clients who’ve accepted to permit Eneco to cease or scale back their electrical energy provide when the community is beneath pressure in alternate for decrease costs.However for houses and firms who wish to scale-up their use of electrical energy with a brand new or bigger grid connection, that, more and more, is simply not potential.”Usually customers wish to set up a warmth pump, or cost their electrical car at residence, however that requires a a lot larger energy connection, and more and more they only can’t get it,” says Mr Kees-Jan Rameau.He provides that it’s worse for companies. “Usually they wish to broaden their operations, they usually simply can’t get additional capability from the grid operators.And it’s got to the purpose the place even new housing development within the Netherlands is turning into more and more tough, as a result of there’s simply no capability to attach these new neighbourhoods to the grid.”These individuals, and firms, find yourself on ready lists for various years. On the identical time there are additionally ready lists for many who wish to provide the grid with energy, akin to a brand new residence fitted with photo voltaic panels on its roof.Vitality agency Eneco can remotely scale back the quantity of electrical energy generated by its wind farmsTennet, the government-owned company that runs the Netherlands’ nationwide grid, says that 8,000 firms are at the moment ready to have the ability to feed in electrical energy, whereas 12,000 others are ready for permission to make use of extra energy.Some sectors of the Dutch financial system are warning that it’s hampering their development. “Grid congestion is placing the way forward for the Dutch chemical business in danger… whereas in different nations will probably be simpler to speculate,” says the President of the Dutch Chemical Affiliation Nienke Homan.So, was all this avoidable? “In hindsight I feel nearly each drawback is avoidable,” says Mr Kees-Jan Rameau.He provides that following the 2015 Paris Settlement on making an attempt to sort out local weather change, “we had been very a lot focussing on rising the renewable energy era facet. However we sort of underestimated the impression it could have on the facility grid.”Tennet is now planning to spend €200bn ($235bn; £174bn) on reinforcing the grid, together with laying some 100,000km (62,000 miles) of latest cables between now and 2050.That is an enormous amount of cash, however there may be additionally an enormous price to not spending it. Grid congestion is costing the Dutch financial system as much as €35bn a yr, in line with a 2024 report from administration consultancy group Boston Consulting Group.Eugene Beijings, who’s in command of grid congestion with Tennet, says that endurance is unfortunately required. “To strengthen and reinforce the grid, we have to double, triple, generally improve tenfold the capability of the prevailing grid.”And it is taking over common about 10 years to do a undertaking like that earlier than it goes reside, of which the primary eight are laws and getting the rights to place cables within the floor with all property homeowners. And solely the final two years are the development interval.”And in the meantime the vitality transition goes that quick that we can’t address it, with the prevailing grid. So each further request [to connect] is including to the ready record.”Zet ook de knop omThe Dutch authorities has paid for adverts encouraging individuals to not cost their automobiles throughout peak hoursAt the Dutch vitality ministry, which is definitely referred to as the Ministry for Local weather Coverage and Inexperienced Development, the Minister Sophie Hermans wasn’t out there for an interview. However her workplace gave an announcement:”In hindsight, the pace at which our electrical energy consumption has grown might need been collectively underestimated previously by all events concerned. It’s also laborious to foretell the place the expansion will happen first, as this outcomes from particular person firms/sectors and households.”As for options, the ministry says it has a “Nationwide Grid Congestion Motion Plan” focussed on adjusting laws so grid growth permits could be granted extra rapidly.It’s encouraging individuals to make higher use of the prevailing grid with, for instance, its Flip the Change marketing campaign.And the monetary incentive for individuals who feed their surplus photo voltaic electrical energy into the grid is being lowered to nearly nothing. In some instances, individuals will even should pay to feed solar energy into the grid.Learn extra international enterprise tales

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