Understanding grid congestion in the Netherlands

In many parts of the Netherlands, grid operators are experiencing or expecting a structural shortage of transport capacity on their electricity grids. This is the result of rapidly growing electricity demand due to the energy transition on top of economic growth. 

As the national knowledge platform on energy hubs, we help companies join forces to collectively manage their local energy systems. With this article, we aim to give international companies with operations in the Netherlands a clearer understanding of local grid capacity challenges and potential solutions.

What is grid congestion?

Grid congestion occurs when the electricity network structurally lacks the capacity to transport all the energy that is being generated or consumed at the same time. This long-term bottle neck leads to delays in new connections and ongoing restrictions for both energy users and producers.

It’s a growing challenge in countries with a booming energy transition, especially when many businesses and households are switching to solar energy, electric vehicles, and heat pumps.

Why is grid congestion a problem in the Netherlands?

The Netherlands has one of the most ambitious climate and energy agendas in Europe. As a result:

• The demand for electricity is growing rapidly.
• Solar energy production is booming, especially on business rooftops.
• More industrial clusters are electrifying their operations.
• Electric vehicles and heat pumps are the new norm.

However, the Dutch electricity grid was not originally designed for this scale of decentralised energy generation and flexible demand. This causes bottlenecks in many regions, known as grid congestion.

What measures are being taken?

1. Grid reinforcement

Dutch grid operators are investing billions of euros to expand the electricity network. This includes:

• New substations and transformer stations
• Upgraded cables and connections
• Faster permitting processes

However, grid reinforcement takes time: typically 5 to 7 years for major upgrades.

2. Congestion management

In the meantime, congestion management offers a solution. Grid operators work with companies to:

• Shift electricity use to off-peak hours
• Limit feed-in at peak times
• Use local flexibility and storage

This is often coordinated by a Congestion Service Provider (CSP).

3. New tariffs and access models

The Dutch energy regulator, ACM, is introducing:

• Time-based tariffs (lower costs when grid load is low)
• Non-firm access contracts (flexible usage with curtailment options)
• A prioritization scheme for projects with an essential social function

These changes aim to make grid access fairer and more efficient. Find out more about ACM’s congestion measures  (in English) and prioritisation measures (in English).

What does this mean for international companies?

If you are planning to expand your operations or connect renewable energy assets in the Netherlands, you may face delays in connecting to the grid, limitations on how much energy you can use or feed in, or requirements to share capacity with other users. 

By joining forces, you can often still make your operations more sustainable, expand, or collaborate in an energy hub. The best option depends on your location and how much flexibility you have in your processes. The Energy Hubs Knowledge platform offers an overview of the steps you can take to find out what suits your situation. Additionally, collaborating with an experienced (technical) advisor can provide useful insights.

The Kennisplatform Energiehubs (or Energy Hubs Knowledge Platform) is an initiative of Dutch grid operators, the national energy sector and the government. It intends to accelerate the deployment of energy hubs in the Dutch energy market.

Our platform offers everything you need: a clear step-by-step plan and real-world examples, an overview of organisations that can support you, and a database filled with knowledge. Together, we work towards a smart, sustainable and future-proof energy system.