We are consuming more and more electricity . The generation of energy by solar panels and wind turbines is also increasing rapidly. It leads to sustainability, but also to an overcrowded energy grid. The phenomenon of overcrowded energy grids is also known as grid congestion. It means that the demand for electricity is greater than the power grid can supply. This occurs especially during peak periods. For example, in the late afternoon and early evening, electricity consumption is high. At the same time, sunny and windy days actually cause a peak in supply, as solar panels and wind turbines generate a lot of electricity. Grid congestion is becoming an increasingly prominent problem in the commercial property market. A survey by NVM Business and BrainBay found that 53 percent of business parks in the Netherlands do not have capacity available for the additional offtake of electricity. The biggest barriers to business growth are very recognizable, namely grid congestion and lack of space.
National grid operator TenneT supplies electricity to substations. Via those substations, electricity goes to transformer boxes in neighborhoods. From these transformer boxes, power is supplied to small businesses and homes. This voltage is lower than the 'medium voltage' to which medium-sized businesses and industrial areas are often connected. The very largest businesses are even on the national high-voltage grid. The high-voltage grid is also needed to redistribute sustainably generated energy. Gelderland, Utrecht and Flevoland face the biggest problems. Large companies there cannot be connected to the grid until at least 2029 and congestion is also threatening in other regions. Grid congestion also creates problems for the construction of houses and for those seeking a home. Almere, for example, has received news that housing construction there is at risk.
SMEs are hit particularly hard. Because there is not enough energy or space, there are few opportunities for businesses to grow or innovate and the emergence of SMEs as growth engines is cut back. This hampers local businesses, the national economy and worsens the competitive position of the Netherlands as a whole. Business parks have great potential to become more sustainable and to have a positive influence on the livability of cities. The NVM stresses the importance of encouraging companies to act more sustainably.
Responses from interest groups and government
At the General Assembly of the Association of Netherlands Municipalities (VNG), Almere, along with sixteen other municipalities, submitted a motion requesting the VNG to work hard with the government for a fast solution. The motion was accepted unanimously, and also received the support of the VNG board beforehand. VNG is involved in a national grid congestion action program, which focuses on the problem of congestion in medium and high voltage grids. It is also co-drafters of the low voltage action agenda.
These programs look at the problem on the basis of three tracks: gaining more insight into power consumption, increasing capacity by expanding and strengthening the network and using that network more efficiently.
Back in October, previous Minister for Energy Rob Jetten announced new measures against congested grids, in line with the VNG line. For example, he wanted municipalities and provinces to proactively identify land where additional infrastructure could be built more quickly. In addition, the cabinet wanted to create laws stating that accelerated procedures would apply to projects of "substantial social interest," including energy supply. Although, the Council of State recently voiced strong criticism of that proposal.
Finally, Jetten and the VNG advocated the use of unorthodox measures. For example, municipalities could use the right of first refusal when acquiring land for infrastructure. Also, network operators are increasing their investment budget from €6 billion in 2024 to €8 billion in 2025.
Recent case law
It is noticeable that grid congestion is increasingly leading to conflicts and that more and more court rulings on the subject are also appearing. Applicants are increasingly taking legal action if they are told that there is no room for their connection. Currently, connections are still allocated in order of application, but a prioritization framework is already being developed.
Pont Omgeving recently dove into a number of Gelderland District Court rulings on net congestion. From these they extracted the following:
First, several rulings confirm that grid operators can invoke the statutory exception to the duty of transmission with a reference to grid congestion.
Furthermore, it appears that the exception to the obligation to transport applies to small consumers in addition to large consumers.
It was also ruled that a reliance on Article 16(1)(c) of the “E-wet”, taking the position that the grid operator has not adequately fulfilled its duty to expand the grid, makes little sense. The court additionally ruled that the grid operator is not bound by fixed deadlines to expand the grid in the context of Article 16(1)(c) of the “E-wet”, as well as that individual applicants cannot derive any rights from the grid operator’s legal obligation. Indeed, according to the court, the grid operator is not accountable to individual applicants with respect to this statutory duty, but only to the Authority Consumer and Market (ACM) as regulator.
Transmission applicants can, however, demand greater transparency from the system operator. In one ruling, for example, a system operator was ordered to provide access to: the claimant's position on the queue, the number of parties ahead of her in the queue, and the size of the requested transportation capacity in relation to the available capacity.
Thus, there appear to be limited options available to force the system operator to provide transport, as long as the system operator can demonstrate a shortage of capacity. Depending on the circumstances of the case, the court may well grant other claims, such as greater transparency.
Ultimately, going to court seems of little use in getting connected faster. A court ruling does not change anything about grid congestion. Ultimately, it is up to the government and the grid operators to ensure the expansion of the power grid.
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