Investments in the Dutch energy grid are projected to average 15 billion euros annually in the coming years, according to grid operators’ biennial plan. This marks a significant increase from previous averages of 4 billion euros and 8 billion euros in recent years.

Despite the increased investment, the conversion of the Dutch electricity and gas grid for the energy transition is experiencing delays.

Four hundred of the more than nine hundred major projects are behind schedule due to factors such as lack of space, technician shortages, and slow procedures.

Maarten Abbenhuis, COO of Tennet, acknowledges the scaling up efforts but notes that societal demand is growing at an even faster pace.

Grid operators face increasing difficulties in realizing growth plans due to the complexity of finding space and obtaining permits in the densely populated Netherlands. Tennet projects take an average of ten years, with two years dedicated to construction and the remaining time spent on preparations such as permit acquisition.

Regional grid operators are encountering similar challenges as demand for electricity is expected to increase sharply. Maarten Otto, Chairman of Netbeheer Nederland, indicates that grid operators are struggling to keep up with the demand through the construction of new electricity cables and transformer substations.

Tennet warns that the number of mega-batteries needed to balance the electricity grid threatens to fall short of requirements. While a minimum of 5 gigawatts of battery capacity is needed by 2030, the realization of this goal is uncertain due to investment decisions lagging behind application numbers. Battery projects are being diverted to Belgium and Germany due to lower network costs.

Abbenhuis points out that demand for more electricity from industry is lagging, partly due to less favorable rules for electrolyzers compared to other countries. He emphasizes the importance of electricity demand growing in tandem with supply.

Grid operators urge the upcoming cabinet to expedite permit procedures and request municipalities and provinces to identify locations for large transformer substations.

Otto stresses the need for consistent government policy, highlighting the impact of decisions related to central heating boilers, net metering schemes, and climate objectives on grid operators’ responsibilities. Inconsistencies in policy create uncertainty for citizens and entrepreneurs regarding investments in solar panels and heat pumps.

Despite implementation challenges, Abbenhuis believes that the investment plans can be implemented with adequate space for construction, enabling readiness by 2050.

Otto emphasizes that the success of the energy transition is crucial for the country’s living standards, economic activity, and resilience.