Grid congestion in The Netherlands, and why we must heed the warning

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As Europe accelerates its transition to clean energy, the Netherlands faces a critical challenge that could undermine progress: grid congestion. If left unaddressed, it not only threatens to halt economic growth, but could derail climate goals, sending ripples across Europe, writes By Ynse de Boer of Univers.
Grid congestion arises when the electricity infrastructure cannot accommodate the influx of power, particularly from renewable sources like wind and solar, and deliver it when and where it’s needed.
In the Netherlands, this has become a pressing problem, with grid operators such as Liander and TenneT warning of wait times of up to 10 years for businesses seeking new connections or expansions. According to research by BCG and Ecorys, grid congestion could cost the Dutch economy up to €40 billion annually.
However, this isn’t just a challenge for the Netherlands – it’s a stark reminder for Europe of the urgent need to modernise infrastructure to support the clean energy future.
As other European countries ramp up renewables and electrification, they risk falling into the same trap: a grid unable to handle the future it was built to power. In the UK, growing demand for electric vehicle (EV) adoption and home electrification is placing unprecedented strain on the grid, with the National Grid projecting that peak electricity demand could rise up to 50% by 2035. Without strategic investments in grid capacity and energy storage, congestion will become inevitable.
Germany has seen renewable production hit record highs, yet grid limitations routinely force wind farms in the north to curtail generation because the electricity can’t be transported efficiently to demand-heavy regions in the south. In 2023 alone, these constraints led to the curtailment of approximately 19 TWh of renewable energy – enough to power over 5.6 million German households for a year.
France, traditionally reliant on nuclear power, faces a different challenge. While nuclear offers steady supply, integrating decentralised renewable sources like solar and wind requires a more flexible, modernised grid. Without significant upgrades, France risks grid congestion that could stall its clean energy transition.
These examples underscore why the Dutch crisis is a clear signal of what’s to come across Europe. Without urgent action, economic growth could slow, energy investments could stall, and climate targets could slip further out of reach.
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More than just infrastructure upgrades
At the heart of this looming grid congestion crisis lies the transition to an increasingly variable and decentralised energy system.
Wind farms, solar parks, large-scale battery installations, and EV charging infrastructure interact with the grid, generating and consuming clean electricity at scale. This increases variability and spreads generation more widely across the network.
However, much of Europe’s grid infrastructure was designed for a centralised energy system, where large power plants – coal, nuclear, or gas – delivered electricity steadily to homes and businesses.
This old-style infrastructure struggles to cope with the surge of intermittent renewable energy being fed into the system, at ever more geographically dispersed points like remote wind farms or rooftop solar installations all over the map.
The result is a grid ill-equipped to transport power efficiently from where it’s generated to where it’s needed most, leading to imbalances, wasted clean energy, and, ultimately, bottlenecks that stall progress and economic growth.
While investments in grid upgrades and cross-border infrastructure projects are underway, they remain insufficient to meet the rapid surge in demand and decentralisation of energy supply.
Eurelectric estimates that Europe will need to double grid capacity by 2050 to integrate variable renewable generation and decentralised assets. Yet current investment levels fall far short, with only 30 cents invested in grid development for every euro spent on clean energy generation—when it should be closer to 67 cents.
To prevent grid congestion from derailing the energy transition, Europe must look beyond large-scale grid upgrades and embrace decentralised energy solutions.
Moving away from centralised energy
First, technologies such as microgrids, battery storage, and behind-the-meter systems allow businesses and communities to generate and store energy locally, easing pressure on overstretched national grids.
By integrating renewable sources like rooftop solar and pairing them with on-site batteries, companies can stabilise supply and increase independence from grid infrastructure constraints.
Second, an equally important strategy is the adoption of intelligent software to connect with all the energy system’s component parts and to optimise energy flows and balance supply and demand in real time.
Combinations of such systems can store surplus energy, such as excess solar power generated during the day, and release it during periods of peak demand.
A prime example comes from the Netherlands’ largest supermarket chain, Albert Heijn, which faced grid constraints as it electrifies its vehicle fleet, and turned to Univers, global market leader in software to manage advanced new energy systems.
To overcome its grid constraints and electrify its fleet, Albert Heijn installed an energy infrastructure that includes on-site power generation, battery storage, and EV charging. Univers deployed their software platform to integrate the component parts of Albert Heijn’s energy infrastructure and provide automated, real-time control. Connected through IoT and orchestrated by AI, the system not only ensures Albert Heijn’s fleet remains operational but also reduces strain on the national grid.
Such innovations not only maximise the efficiency and effectiveness of existing grid capacity but also create more flexible, resilient energy systems capable of meeting the demands of a rapidly electrifying and growing economy.
The cost of time
The situation in the Netherlands highlights the severe consequences of grid congestion when left unchecked.
Businesses are facing delays or even outright refusals for new power connections and expansions. Industrial parks struggle to make the transition to electrical operations, while companies eager to invest in sustainable energy projects are left in the dark, often withdrawing from their plans altogether.
Without reliable access to power, businesses cannot scale. When renewable energy is curtailed, their financial viability declines, and emissions targets fade into the distance.
This is not just a problem for the Netherlands – it’s a pressing issue for the whole of Europe. As renewable energy adoption grows and electrification accelerates, policymakers, grid operators, and businesses must prioritise the modernisation of the grid. This is no longer a secondary concern; it must be addressed immediately.
The implications are far-reaching: grid congestion is about much more than energy – it’s about economic development, environmental sustainability, and Europe’s ability to lead the global clean energy transition.
About the author

Ynse de Boer is Global Sustainability Lead with Univers, a software company specialising in AI for energy, particularly focused on decarbonisation solutions.