Holland stands as Europe's energy hub, a testament to its robust fossil fuel infrastructure, rapid and extensive renewable energy deployment, and superior digital and physical infrastructure. With a nationwide grid, the Netherlands is spearheading the electrification of homes, businesses, and industries, creating both challenges and opportunities for leaders in smart energy solutions.
The country’s existing conventional infrastructure is undergoing modernization to fully accommodate renewable energy sources by 2030. Ports, industries, and manufacturing sites are actively supported in their decarbonization efforts through electrification, energy efficiency, and environmental optimization. Holland boasts a tech-savvy population and ample space for digital innovation experiments.
The Dutch energy sector employs approximately 150,000 individuals across all aspects of conventional and renewable energy production. The nation’s annual energy consumption is around 3,000 petajoules, with renewable electricity production exceeding 31 terawatt hours in 2022 (that includes biomass, wind, and solar).
TenneT, the country’s transmission system operator (TSO), maintains a 380KV grid and operates interconnectors with Norway, Denmark, Germany, Belgium, and the UK. Six distribution system operators (DSOs) ensure a grid stability of over 99.999%. Numerous research, development, and demonstration sites are open for collaboration across all energy transition technologies. Additionally, training centers and living labs continually support innovation and skill development.
The Netherlands houses over 7 million dwellings, 1 million offices, and thousands of business parks. Over one million solar PV systems are installed in households, averaging approximately three kilowatts peak. As of 2022, the country has over 260,000 battery electric vehicles on the road and nearly 100,000 public charging points, solidifying its position as a global EV leader.
The average annual household consumption is 3.5 megawatt hours and 1500 cubic meters of natural gas. More than a million dwellings have adopted smart appliances like smart thermostats or energy consumption monitoring devices. In the liberalized retail energy market, consumers increasingly embrace green and flexible energy providers.
Energy innovation thrives in the Netherlands due to a combination of strategic government support, world-class infrastructure, and a strong focus on collaboration. The Dutch government has set an ambitious agenda to achieve a net-zero energy system that is both reliable and affordable, fostering a favorable environment for innovation. The country’s top-tier infrastructure, encompassing logistics, mobility, digital networks, and energy systems, serves as the backbone of its thriving economy and society. Additionally, the Netherlands benefits from a highly dependable energy system, with grid stability exceeding 99.999%, offering a strong foundation for transitioning to renewable energy sources.
Moreover, the Netherlands is home to a comprehensive network of innovation facilities where various stakeholders collaborate on cutting-edge energy solutions. The country’s academic institutions enjoy a global reputation for excellence, contributing to research and development in sustainable energy. With access to a large pool of skilled professionals and a fast-growing business ecosystem, the Netherlands continues to attract energy innovators. Its strategic location within Europe further enhances its role, providing seamless access to the continent’s major markets, making it an ideal hub for scaling energy solutions across the region.
The Netherlands is committed to developing a net-zero energy system that is as reliable and affordable as the one that has underpinned its thriving economy. The country is rapidly scaling up its renewable energy production, aiming to rely solely on natural resources by 2050. New solutions are necessary to balance supply and demand in the decentralized and fluctuating energy landscape.
“The Netherlands consistently ranks at the top in logistics, mobility, digital, and energy infrastructure, thanks to strategic investment priorities. Its fast, extensive, and reliable digital infrastructure supports innovative services like smart grid solutions. With 136,000 kilometers of gas pipelines and a leading position as Europe’s second-largest hydrogen producer, the country is well-equipped to transition its energy infrastructure towards hydrogen.” – Anna Elferink, FDI Advisor Renewable Energy & E-mobility
The Dutch are known for their collaborative spirit and have established an extensive network of innovation facilities where energy companies, academic researchers, students, regulators, and certifiers collaborate. The energy transition and the rapid pace of electrification pose significant challenges to the transmission grid. Grid operator TenneT invests between €3 and €6 billion annually in capacity expansion in the Netherlands. Smart grid technologies are crucial for optimizing grid usage and maintenance. The energy transition, electrification, and distributed power production and feed-in present challenges to the energy system. In the Netherlands, the government, grid operators, distribution companies, and universities are working together to develop next-generation solutions.
The energy transition affects everyone. Grid congestion occurs in many parts of the Netherlands, particularly in the Utrecht region. Despite efforts to improve and expand the network, this has consequences for companies and housing in the region. On the other hand, this also ensures that creative and innovative ideas are embraced more rapidly.
Energy hubs will play a crucial role in connecting local sustainable energy generation with consumption, reducing pressure on the electricity grid in the near future. To foster the development of these hubs, the Dutch government has allocated €166 million through the Energy Hub Incentive Program. The Utrecht region, aiming to become fully climate-neutral by 2030, serves as a model for this approach. Despite limited space for large-scale energy production, Utrecht utilizes various sustainable energy sources such as solar panels, wind turbines, residual heat, and geothermal energy.
Utrecht University (UU), with over 32,000 students, is at the forefront of research in sustainable energy. The Copernicus Institute of Sustainable Development at UU leads groundbreaking research in this field, with experts like Professor Wilfried van Sark focusing on the integration of photovoltaics and Professor Annelies Huygen working on natural gas-free neighborhoods. This research contributes to innovative solutions that support the region’s climate goals.
The Smart Energy Systems innovation ecosystem is built on three key pillars. First, it focuses on smart and data-driven operations, developing digital solutions that connect sustainable energy supply with demand using transparent, standardized data and intelligent software. Second, it promotes the integration of energy systems to achieve scalability and flexibility through comprehensive solutions. Lastly, it emphasizes economic, social, and societal development by fostering a well-supported system that encourages knowledge expansion and talent growth.
In Utrecht, a pioneering project involving electric vehicle batteries has demonstrated their potential to alleviate grid congestion. We Drive Solar has partnered with Utrecht municipality, Hyundai, and local citizens to install 150 bidirectional charging stations. These stations enable electric vehicles to both charge and discharge power back into the grid, providing a valuable flexibility resource.
Approximately 10,000 electric vehicles equipped with bidirectional charging capabilities can collectively store and discharge around 100 megawatts of power, significantly reducing grid congestion in the Utrecht region, according to Robin Berg, Founder & CEO WeDriveSolar. This innovative approach offers a practical solution to the challenges posed by the increasing number of electric vehicles and the strain on the existing grid infrastructure. Robin Berg: “10,000 cars have approximately 100 megawatts of flexible power, which can prevent the worst grid congestion in the Utrecht region.”
The Utrecht region’s commitment to sustainable energy and innovative solutions, such as V2G charging, showcases its potential to become a model for other regions facing similar challenges. By harnessing the capabilities of electric vehicles and integrating them into the grid, Utrecht is actively contributing to a more resilient and sustainable energy future.
“Every challenge offers a unique opportunity. The ability to anticipate challenges and take proactive steps gives entrepreneurs a competitive edge. Creativity is essential in this process. If you’re an innovative thinker who’s eager to collaborate and contribute to our local ecosystem, we’re excited to support your endeavours in the Utrecht Region.” – Anna Elferink, FDI Advisor Renewable Energy & E-mobility
The Netherlands requires new smart technologies to address its energy challenges. These technologies include smart grid management software, cybersecurity, digital twinning, virtual plants, forecasting, load and maintenance forecasting, superconduction, advanced drilling for subsoil cabling, grid batteries, subsoil energy storage, metering equipment, and software for energy hubs.
