The energy transition in the Netherlands is causing a sharp increase in both the demand for and supply of electricity. As a result, grid congestion is a growing problem: it occurs when the transmission capacity of the electricity grid at a given location is insufficient to meet the demand for, or supply of, electricity. This leads to bottlenecks in business parks, among other places. Companies want to expand their operations in vain, sustainable projects are delayed and other companies want to establish themselves in a new location.
Grid expansion is the most effective solution to this problem, but grid expansions take years to realize. Current policies to address grid congestion have only marginal effect for now. At the same time, significant social costs arise from grid congestion because sustainability or business expansion cannot take place. Therefore, other solutions are necessary to counteract the negative effects of grid congestion.
Generation of local renewable energy can provide relief
One possible solution to this is more local generation of renewable energy. Indeed, local energy generation on business parks, often in combination with battery storage or other methods that provide flexibility, can help alleviate grid congestion. In addition, this often requires reducing the peak demand of the business park. This either creates more relative grid space for own use, or can reduce the total required grid capacity in favor of other users. Business parks are ideally suited for this purpose because of their economies of scale and the coherence of different types of businesses, and thus different types of energy demand.
This report therefore examines the extent to which local generation of electricity from solar and wind on business parks offers a solution to congestion problems. To illustrate this, the impact of local generation for two types of business parks is analyzed through a model calculation. For both business parks, two scenarios of renewable generation (one with and one without wind energy) are compared to the business as usual scenario. The scenario in which a combination of solar and wind is possible is referred to as Optimum. Finally, the scenario without wind is referred to as No Wind. The distinction between the two types of business parks allows for a broader interpretation of results. The different business parks concern hypothetical situations, based on real data. This makes these business parks exemplary of many cases around the country.
