Investments in Dutch Energy Grid Increase but Projects Face Delays

Investments in the Dutch energy grid are set to increase to an average of 15 billion euros per year, according to the bi-annual plan announced by grid operators. This marks a significant rise from previous years, with the average annual investment first at 4 billion euros and then 8 billion euros just two years ago.

Despite the increased investment aimed at converting the Dutch electricity and gas network for the energy transition, projects are facing growing delays.

The delays are attributed to several factors, including lack of space, a shortage of technicians, and slow permitting procedures. These issues have led to delays in the completion of approximately four hundred of the more than nine hundred major projects.

Maarten Abbenhuis, COO of Tennet, the national high-voltage grid operator, acknowledged the rapid scaling up of efforts but noted that social demand is growing at an even faster pace.

According to Netbeheer Nederland chairman Maarten Otto, the demand for electricity is expected to rise considerably. However, the construction of new electricity cables and transformer stations is not keeping up with the increasing demand.

Tennet also warns that the number of mega-batteries needed to stabilize the electricity grid is not on track to meet the required capacity. By 2030, at least 5 gigawatts of battery capacity are required but investment decisions are lagging.

The grid operators are urging the next government to expedite permit procedures and are requesting municipalities and provinces to proactively identify locations for large transformer stations, the construction of which is also falling behind.

Furthermore, grid operators emphasize the importance of consistent government policies to provide clarity for citizens and businesses regarding investments in renewable energy sources.