ABN AMRO Advocates for Collaborative Solutions to Prevent Power Grid Congestion in the Netherlands

ABN AMRO Advocates for Collaborative Solutions to Prevent Power Grid Congestion in the Netherlands

(IN BRIEF) Starting in 2026, the Netherlands is facing the risk of power grid congestion due to rising electricity demand, which could hinder the country’s energy transition. ABN AMRO’s latest report highlights the importance of cooperation between companies and grid operators to mitigate this issue. By forming energy hubs, companies can negotiate joint capacity contracts, making more efficient use of grid capacity and helping to alleviate congestion. New legislation, including updates to regulations and the introduction of the Energy Law, supports these collaborative efforts. ABN AMRO will address these challenges at its Decarbonisation Summit in 2025.

(PRESS RELEASE) AMSTERDAM, 15-Jan-2025 — /EuropaWire/ — Starting in 2026, power grid congestion is expected to become a significant issue across the Netherlands as the grid struggles to keep pace with the growing demand for electricity. Dutch businesses and grid operators are concerned that this congestion could slow down the country’s energy transition. ABN AMRO’s updated report, Quid pro quo: What’s Causing Increasing Power Grid Congestion and How to Solve It, highlights these concerns and suggests that cooperation between companies and grid operators could be a crucial part of the solution. With the introduction of new contract models, there are now opportunities for businesses to work together to alleviate pressure on the power grid and help accelerate the energy transition, which is vital for meeting the 2030 climate goals.

ABN AMRO emphasizes the importance of joint negotiations for more flexible grid capacity utilization. A key solution is the formation of energy hubs, where companies group together to negotiate capacity contracts with grid operators. By doing so, they can secure more capacity than they would individually. In return, these hubs offer part of their granted capacity back to the grid operator, helping to reduce waiting lists and improve the overall efficiency of the power grid. Peter van Ees, ABN AMRO’s energy sector expert, stresses that businesses need to begin these collaborative negotiations with their local companies and grid operators by 2025 to avoid being caught off guard by congestion in 2026.

Recent legislative changes have provided support for this new form of collaboration. The Dutch Authority for Consumers and Markets (ACM) has updated regulations to allow more flexibility in grid operations, and the Dutch Senate passed a new Energy Law in December 2024, which will take effect in April 2025. This law offers additional opportunities for energy hubs to actively participate in the energy market, addressing grid congestion and enabling more efficient use of existing grid capacity.

Grid congestion and its impact on the energy transition will also be a central topic at ABN AMRO’s Decarbonisation Summit in 2025, scheduled for February 5 at Ahoy Rotterdam, where the bank will engage with clients on how to address these critical challenges.

Media Contact:

Marieke Ziedses des Plantes
Sr Press Officer Corporate Banking, Wealth Management
marieke.ziedses.des.plantes@nl.abnamro.com
+31 (0)20 6288900

SOURCE: ABN AMRO