The energy transition often seems like a given: we should get rid of gas, electrify everything, and bet on green (or maybe blue?) hydrogen. We should, but can we? Grid congestion is starting to cause serious problems. There are creative solutions, but someone must take charge and create space for these to be tested.

Grid congestion is starting to not just be a theoretical issue. Entire housing estates can no longer be built due to the over-installation of solar panels. Counterintuitive perhaps, but these panels we so desperately need for the energy transition now hinder us more than they help us. On the European level, however, there is an abundance of legislation and innovative ideas. Much of the solution already seems to have been found. What is lacking is (space for) implementation. The Dutch government needs to take the lead and charge ahead.   

Energy communities 

A striking feature of the EU energy regulations is that citizens are explicitly given an active role. In the past they were seen only as passive actors in the market, now the importance of energy communities is clearly underlined. These communities work together, with or without local actors such as municipalities and companies, to generate, use and trade their own energy. Energy communities are frequently mentioned as ‘the solution’ against grid congestion, but they are not yet regulated in Dutch law.  

Without this integration in the energy law, energy supply remains in the hands of companies, which thwarts market forces and fosters grid congestion. When consumers can compete on the energy market with their own energy supply, electricity is used more locally, which can counteract grid congestion and additionally ensure lower prices.  

Outside the box 

Apart from these EU laws, there is also no shortage of more creative solutions to grid congestion, but, then again, the current Dutch legislation leaves little room for innovation. Grid operators have the logical position to innovate but are forced by the tight legislative framework to stick to their 'one hit wonder': grid reinforcement, in which the grid is made extra strong to give it more capacity. This tool, however, is not only very costly, but also time- and labor-intensive. But also consider the project of the Amsterdam and The Hague University of Applied Sciences where the OV-DC electricity grid can be cleverly used to relieve the grid during peaks. For instance, tram lines are not used around the clock and so can accommodate abundant power well. After all, why not make better use of existing grids?  

Clear driver 

Since 2021, the Dutch parliament has been wrangling over the new Energy Act, which is supposed to replace the 1998 Electricity Act. However, debates continue to linger and center around privacy issues, Liberal parties fearing especially for the minister in the meter box and expressly wanting to protect citizens but also commercial parties from too much government. Of course, privacy issues remain important, but now the need for a clear driver of the transition is more urgent. There are wonderful scripts waiting to be used, but the Dutch government remains the director and must diligently start dividing the roles. And, perhaps in the meantime, the EU could start calling the shots in the upcoming hydrogen market?