The Netherlands is targeting 110 GWh of battery energy storage capacity by 2040, establishing its first national benchmark for storage deployment as grid congestion increasingly constrains renewable energy integration and new connections.
The target, presented to parliament by the Dutch government, represents more than a 50-fold increase over installed capacity at the end of 2025.
To support the expansion, the government has developed a national Energy Storage Policy Agenda with grid operators, industry associations, regional authorities and the Authority for Consumers and Markets (ACM). The framework sets out 25 actions aimed at addressing regulatory, infrastructure and market barriers that have slowed battery project development.
The benchmark reflects a growing recognition that expanding renewable generation alone will not resolve the Netherlands’ electricity system constraints. Storage must also become more readily available to absorb surplus electricity, manage demand peaks and provide flexibility where transmission and distribution networks are congested.
A major obstacle to battery development in the Netherlands is limited grid capacity. The policy agenda therefore prioritizes connections that allow large batteries to adjust their charging and discharging according to network conditions.
Grid operators are expected to make capacity-control and redispatch contracts the standard approach for new large-scale storage connections. These arrangements would allow operators to limit battery consumption or injection when networks are congested, while creating opportunities for compensation when batteries provide flexibility.
The approach builds on existing market developments. TenneT has already used capacity-control arrangements for battery projects, including an agreement involving a 200 MW / 800 MWh system designed to relieve congestion. Such projects demonstrate how storage can provide network services, although their commercial viability depends on contract terms and compensation mechanisms.
The government also intends to accelerate permitting by improving coordination between developers, grid operators, municipalities and provincial authorities. The agenda addresses suitable project locations, standardized permitting procedures and clearer information about regional flexibility requirements.
The policy framework recognizes that grid connection agreements alone will not be sufficient to attract investment. Battery operators also need predictable revenue streams that reflect the benefits their installations provide to the electricity system.
The Authority for Consumers and Markets will examine whether adjustments to network tariffs, including discounts or exemptions, could improve the economics of storage projects where they demonstrably reduce system costs. The framework also prioritizes agreements on availability payments and compensation for grid-supporting operation.
For 2027, the government has reserved €35 million for the continuation and potential expansion of the Flex-e subsidy scheme, which supports business investments in energy flexibility.
The 110 GWh benchmark is based on the Netherlands’ National Energy System Plan and covers residential batteries, standalone installations, co-located storage and vehicle-to-grid capacity. The associated power benchmark is 28 GW, equivalent to an average storage duration of approximately four hours.
This distinction matters because reaching the energy capacity benchmark will require both sufficient installed battery power and an appropriate mix of storage durations. Short-duration batteries can address daily fluctuations and congestion, while longer-duration storage will be needed to manage flexibility requirements over extended periods.
The Netherlands Enterprise Agency (RVO) will monitor deployment annually through a dedicated energy storage monitoring framework. If capacity additions consistently fall behind the benchmark, the government has indicated that further political and regulatory intervention may be necessary.
Add EnergyNews.biz as a preferred source on Google
