The Netherlands emerges as one of the most promising markets for energy storage in Europe, thanks to its great potential. However, it faces significant regulatory barriers that could hinder its development.

Chema Zabala López, CEO of Alantra Energy Transition, explains to Energía Estratégica España: “The major obstacle in the Netherlands today is that storage is subject to costly fees when purchasing electricity from the grid.” What happens is that this high price reduces the competitiveness of storage projects and limits their expansion.

However, the executive states that efforts are currently underway to modify this situation, which could transform the sector’s landscape in the short term: “Right now, work is being done on a regulation to reduce it.” Zabala López suggests that, if these changes are implemented, the market could experience a significant boost.

Undoubtedly, the growth of the storage market is closely linked to the expansion of renewable energy sources. In 2023, 48% of electricity was generated from renewable sources, such as solar, wind, and hydro. Between May and July, more than half of the electricity generated in the country came from renewable sources, reaching 57% in July.

According to the Central Bureau of Statistics of the Netherlands (CBS), the production from renewable sources increased by 21% compared to the previous year, while the share of electricity generated from fossil fuels decreased.

Electricity production from wind and solar power has been key to this growth. In fact, in 2023, wind power production increased by 35%, reaching 29,000 million kWh, driven by the greater installed capacity of both onshore and offshore turbines.

Meanwhile, solar power reached 21,000 million kWh, a 24% increase compared to the previous year, mainly due to an increase in installed solar panel capacity.

Fossil fuels, especially natural gas, are increasingly unavailable in the Netherlands. The Dutch government is gradually driving the transition to sustainable energy. By 2030, the goal is to generate 70% of electricity sustainably, and by 2050, nearly all energy should be sustainable and carbon-neutral.

A Key Market

Despite these obstacles, the Dutch sector has significant potential. With a pipeline of over 70 GW of projects in development, investment opportunities are abundant. “There are ambitious plans in the country, and with more favorable regulation, we could see a massive deployment of capacity in the coming years,” says Zabala Lopez.

This dynamism is what has made the Netherlands an attractive market for project developers, despite the initial barriers. The possibility of adjusting regulations to reduce grid fees could unlock a large storage capacity, bringing the country on par with the United Kingdom in terms of installed volume.

Moreover, the Netherlands has a key advantage: its energy system is highly interconnected with those of neighboring countries, allowing it to offer energy services during stressful situations across Central Europe. This region, which faces high energy demand and still relies heavily on fossil fuels, such as gas and coal, could greatly benefit from Dutch storage services.

José Manuel Menéndez, Vice President of Alantra Energy Transition, adds: “The Netherlands has a very beneficial strategic positioning to contribute to these services and take advantage of the balancing services remuneration schemes, making its market very attractive.”

This positioning strengthens the country’s ability to participate in European energy markets and, in the long term, to establish itself as a key player in the energy transition.

Regarding the Netherlands’ energy objectives, the energy storage project pipeline is promising, but questions remain about its ability to meet the sustainability goals set for 2030 and 2050. While it represents a significant opportunity, its success will depend on overcoming regulatory barriers.

Even with this volume in development, it will be crucial for regulation to evolve to ensure that these projects can be deployed on time and at the necessary scale to meet the growing demand for storage required in the transition to fully sustainable energy.