Netherlands allocates $440 million for utility-scale batteries

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The Dutch government will allocate the funds from the climate package issued last spring, with the subsidies to facilitate the deployment of 160 MW to 330 MW of battery storage.

Meanwhile, grid operator TenneT has introduced a new contract to provide reduced grid transmission fees to battery operators and other flexible capacities, offering potential discounts of up to 65%. The Netherlands Authority for Consumers and Markets (ACM) will determine the updated fees by the coming spring.

“This makes it easier to connect batteries to the Dutch electricity grid,” the government said. “Battery operators who use this form of contract must, upon request, help the grid operator to limit grid congestion. For example, by charging or supplying less at times when a lot of electricity is being transported.”

Research commissioned by TenneT suggests that these reduced grid fees could stimulate the addition of 2 GW to 5 GW of new battery capacity by 2030. The Netherlands faces the pressing need to address grid constraints as it plans to deploy substantial solar capacity in the coming years.

In response to grid limitations, Liander has implemented various measures in areas experiencing grid bottlenecks, including the installation of two large transformers and congestion management. TenneT has also created an interactive online map highlighting congested grid areas across the country.

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These measures include the deployment of two giant transformers and congestion management for grid bottlenecks. Tennet also recently developed an interactive online map showing where the power grid is most congested.

As of June 2022, the Netherlands had a cumulative installed PV capacity of 16.5 GW, with 3,803 MW added in 2021 and 3,882 MW in 2022, according to the nation's statistics agency, CBS.

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