Grid congestion in the Netherlands is worsening, with over 12,000 companies now waiting for a new or expanded electricity connection.

This is one of the key findings of the second Progress Report of the National Grid Congestion Action Programme (LAN), published in March 2025. The report confirms that the Dutch government, in coordination with grid operators, regulators and market stakeholders, is working on more than 100 targeted actions to address congestion and avoid a systemic failure.

“The length of the queue continues to grow and has become a new reality that requires structural action,” the document states. The goal is to complete these measures by the end of April.

Economic growth and energy transition at risk

The report highlights that 90% of Dutch businesses are experiencing direct or indirect consequences of grid congestion, according to the SME Monitor. These disruptions affect expansion plans, renewable energy project development, and the electrification of fleets and industrial processes.

“Grid congestion is cited as one of the main challenges in the Dutch business climate,” the report notes, adding that limited network access threatens both sustainability targets and economic competitiveness.

A national effort with over 100 actions

In response, the Dutch government is rolling out a comprehensive package of over 100 measures, structured around three core pillars:

1. Sneller Bouwen (Faster Construction): accelerating the expansion of infrastructure through innovation, streamlined procedures and multi-level collaboration.

2. Beter Benutten (Better Utilisation): includes new flexible contracts for large users, optimised use of existing networks and shared grid access agreements.

3. Slimmer Inzicht (Smarter Insight): focuses on capacity maps, digital tools and data-driven planning to prioritise investments.

Among the standout initiatives is the “Buurtaanpak”, a neighbourhood-based approach that upgrades entire sections of the low-voltage grid simultaneously. In 2024, 11 neighbourhoods were upgraded; in 2025, 135 are planned, followed by 182 in 2026. The aim is to reduce connection times by three to six months per area.

Efforts also include the legal standardisation of agreements to deploy 50,000 new transformers and the formation of a national energy infrastructure expert pool to support local authorities with permits and technical coordination.

Grid overload by the numbers

The scale of the challenge is unprecedented. From 2020 to 2024, the Netherlands installed over 100,000 kilometres of underground cables, 2,419 transformers in 2024 alone, and nearly 2,000 km of low-voltage cabling. Still, the system struggles to keep pace with electrification.

In 2024, medium-voltage connection rollouts fell by 25%, reflecting growing congestion. The report notes that constructing a high-voltage substation takes up to 10 years, even though demand is immediate.

Flexible contracts and private sector response

A core element of the LAN strategy involves encouraging flexible electricity use by businesses and institutions.

Notably, the new ATR85 time-bound contract guarantees 85% network availability with up to 50% tariff reduction, suitable for facilities with backup systems or battery storage. Time-of-use tariffs for large users on the national grid came into effect in January 2025.

Additionally, the government will launch the Flex-e subsidy programme in April 2025, providing financial support for energy audits, feasibility studies and implementation of flexible solutions. The RVO knowledge centre also offers tailored guidance to businesses and public bodies.

Renewable boom adds further pressure

The country’s push for clean energy is advancing rapidly. According to Statistics Netherlands (CBS), half of all electricity generated in 2024 came from renewable sources, setting new records in wind and solar output.

While positive for the energy transition, this decentralised generation increases stress to an already overburdened grid.

A structural challenge demanding long-term vision

Grid congestion is no longer a localised issue — it now affects nearly the entire Dutch territory. The report confirms that while many measures are already underway, results will only be seen over the medium term. In the meantime, it calls for a cultural shift in electricity use and tighter coordination between government, industry and the public.

“We must make difficult choices and work differently than we are used to if we want to ensure electricity access for all,” the LAN report concludes.