by Ynse de Boer, Global Sustainability Lead, Univers
Across Europe, both governments and businesses are advancing the adoption of clean energy. Yet the Netherlands faces a gradual emerging crisis that could halt this progress – grid congestion.
Grid congestion arises when the electricity infrastructure cannot accommodate the influx of power, particularly from renewable sources like wind and solar, and deliver it when and where it’s needed. In the Netherlands, the grid is already at capacity, with operators estimating waiting periods of up to 10 years for businesses to gain a connection or expansion.
In fact, warning signs are already sprouting across other European countries, which risk following suit. In the UK for example, growing demand from electric vehicle (EV) adoption and home electrification is placing unprecedented strain on the grid. The UK’s National Grid projects that peak electricity demand could rise up to 50% by 2035. Without strategic investments in grid capacity and energy storage, congestion will become inevitable.
A decentralised grid
At the heart of this looming grid congestion crisis lies the transition to an increasingly variable and decentralised energy system.
Wind farms, solar parks, large-scale battery installations, and EV charging infrastructure interact with the grid, generating and consuming clean electricity at scale. This increases variability and spreads generation more widely across the network.
However, much of Europe’s grid infrastructure was designed for a centralised energy system, where large coal or gas power plants delivered electricity steadily to homes and businesses. This dated infrastructure struggles to cope with the surge of intermittent renewable energy being fed into the system, from geographically dispersed points like remote wind farms or rooftop solar installations. The result is a grid ill-equipped to transport power efficiently from its source to destination, leading to imbalances, wasted clean energy, and, ultimately, bottlenecks for progress.
To prevent grid congestion from derailing the energy transition, Europe must look beyond large-scale grid upgrades and embrace decentralised energy solutions.
How do we get there?
First, technologies such as microgrids, battery storage, and behind-the-meter systems allow businesses and communities to generate and store energy locally, easing pressure on overstretched national grids. By integrating renewable sources like rooftop solar and pairing them with on-site batteries, companies can stabilise supply and increase independence from grid infrastructure constraints.
Secondly, an important strategy is the adoption of intelligent software, connecting energy system components and optimising energy flows, balance supply and demand in real time. Combinations of such systems can store surplus energy, such as excess solar power generated during the day, and release it during periods of peak demand.
A prime example comes from the Netherlands’ largest supermarket chain, Albert Heijn, which faced grid constraints as it electrifies its vehicle fleet, and turned to Univers, global market leader in software to manage advanced new energy systems.
To overcome its grid constraints and electrify its fleet, Albert Heijn installed an energy infrastructure that includes on-site power generation, battery storage, and EV charging. Univers deployed their software platform to integrate the component parts of Albert Heijn’s energy infrastructure and provide automated, real-time control. Connected through IoT and orchestrated by AI, the system not only ensures Albert Heijn’s fleet remains operational but also reduces strain on the national grid.
Such innovations not only maximise the efficiency and effectiveness of existing grid capacity but also create more flexible, resilient energy systems capable of meeting the demands of a rapidly electrifying and growing economy.
More than an energy issue
The Dutch example highlights the risk of grid congestion when it reaches a breaking point. Businesses face delays or denials for power connections, and industrial parks struggle to electrify. Without access to power, businesses can’t grow, and curtailing renewable energy makes their operations less viable and pushes emissions targets further out of reach.
Grid congestion affects more than just energy, but economic growth, environmental progress, and Europe’s leadership in the global clean energy transition. Companies like Albert Heijn and Univers are already addressing these challenges by using decentralised energy solutions to ease pressure on grids.
If we fail to heed the lesson from the Netherlands, the annual cost could reach tens of billions of euros – and time that neither businesses nor the climate can afford to lose.
