$45 billion warning: Europe’s grid crisis
Dutch grid congestion may cost $45 B (€40 B) yearly, highlighting a growing threat across Europe’s clean energy transition without urgent infrastructure upgrades.
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The Netherlands: As Europe accelerates its shift to clean energy, the Netherlands faces a severe warning sign: grid congestion. This growing problem threatens not only Dutch economic growth but also the broader European effort to meet climate targets, argues Ynse de Boer of Univers.
Grid congestion happens when power networks cannot handle surging electricity, especially from renewable sources like wind and solar, and cannot deliver it efficiently. In the Netherlands, the problem is acute. Grid operators like Liander and TenneT report that businesses seeking new or expanded grid access face delays of up to a decade. Research from BCG and Ecorys estimates these delays could cost the Dutch economy up to $45 B annually.
This is not just a Dutch issue but a wake-up call for Europe. As countries push ahead with electrification and renewable adoption, many grids remain outdated and overstretched. In the UK, EV demand and home electrification are straining capacity, with National Grid predicting a 50 % rise in peak electricity demand by 2035.
Germany, despite record renewable output, often curtails wind energy due to a lack of transmission capacity. In 2023, 19 TWh of clean energy was wasted, enough to power over 5.6 million homes. Meanwhile, France must modernize its grid to integrate solar and wind with its nuclear-heavy supply.
Europe must act fast or risk stalling its green future.
Source: Smart Energy International
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