Electricity shortage in the Netherlands: Companies are waiting for a connection!

Electricity shortage in the Netherlands: Companies are waiting for a connection!

The Netherlands is facing a serious electricity shortage caused by a rapid switch from gas to electricity. As a result of this development, the country is facing massive delays in electricity connections, which are already affecting thousands of businesses and households. According to a report by World Over 11,900 companies and several public institutions, including hospitals and fire stations, are waiting to be connected to the power grid.

The situation is considered particularly critical because in some regions new connections will not be available until the mid-2030s. One official described the problems as so acute that the situation was “not as bad anywhere else.” The high expectations for electricity demand also result from the final cessation of production in the Groningen gas field in 2023 after earthquakes occurred.

Need for load management

Meanwhile, the Dutch government has introduced new measures to stabilize energy supplies. In order to cope with the increasing demand, electricity load sharing was introduced for the first time. How Berlin newspaper reports, it is necessary for large companies to completely stop their electricity consumption during peak hours, specifically between 4 p.m. and 9 p.m. This is intended to help reduce the load on the power grid.

In addition, network operators plan to offer special contracts that offer households cheaper electricity tariffs if they shift their consumption to off-peak times. At the same time, a campaign for a more conscious use of energy is running to increase awareness of electricity consumption.

Infrastructure requirements

The challenges posed by the shortage have serious economic consequences. Mayor Jeroen Dijsselbloem of Eindhoven warns of the necessary expansion of the electricity infrastructure in order not to stand in the way of future investments. The Brainport region, known for its cutting-edge technology, has already suffered from loss of investment due to power rationing.

The investments required by 2040 are estimated to be around 200 billion euros to build cables and new substations. The situation in the Netherlands is now being interpreted as a warning signal for Germany and other EU countries that also want to switch to electrifying their economies.

Experts warn of similar problems that could arise in Germany if grid expansion is not accelerated. Tennet, the national electricity grid operator, has already warned of delays in line construction in Germany. The Federal Network Agency estimates the total costs for network expansion in Germany to be around 42 billion euros by 2032, with long-term expenditure potentially rising to 730 billion euros by 2045.

Without accelerated network expansion, the challenges currently being observed in the Netherlands are likely to also affect Germany and possibly endanger economic development.