The role of energy hubs in energy transition

The energy transition is in full swing. An energy hub plays a key role in this, as it provides efficient distribution and storage of locally generated energy. By accommodating peaks and troughs in energy consumption, it creates a more sustainable and reliable energy supply.

Bob Hermans

Bob Hermans

2/6/2025
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At Frax, we develop easy-to-use Battery Energy Storage Systems (BESS) that form the core of such energy hubs. Our plug-and-play solutions ensure that renewable energy remains available when you need it, allowing you to be more sustainable and energy independent.

What is an energy hub?

An energy hub is a hub where different forms of energy come together and are smartly coordinated. These include local generation, storage and distribution of electricity, often from renewable sources such as solar panels or wind turbines. Combining supply and demand in an efficient way creates a flexible and reliable energy supply.

In the broader energy transition, an energy hub plays a crucial role, as it helps you optimize your consumption and reduce dependence on the traditional grid. In this way, an energy hub contributes directly to a more sustainable world, with fewer carbon emissions and a more stable energy infrastructure.

Different types of energy hubs

Energy hubs can take different forms, depending on their scale and purpose. For example, there are small-scale hubs at business parks where local entrepreneurs work together to generate, store and exchange renewable energy. This ensures a more efficient use of energy and lower costs for all participants.

In addition, regional and even (inter)national energy hubs exist. These larger hubs connect multiple sources and customers, allowing supply and demand to be balanced on a broader scale. In this way, energy hubs contribute to a future-proof energy grid with less peak voltage and peak load and a more stable power supply.

How an energy hub works

An energy hub works by combining locally generated energy from different sources and distributing it in a smart way. You can think of a mix of solar panels, wind power and possibly other renewable energy sources.

By applying storage technology, such as battery systems, you are able to make better use of the available energy. This allows you to capture peak moments and store surplus energy generated for later use.

Local generation and storage

In an energy hub, energy is often generated locally through sources such as solar panels, wind turbines or biogas plants. This sustainable generation plays an important role in reducing CO₂ emissions because you are less dependent on polluting energy sources.

Using storage technology, such as battery systems or hydrogen, you can store surplus generated energy for times when demand exceeds supply. This allows you to make optimal use of the available energy and reduce peak loads on the power grid.

Balancing and smart steering

An energy hub is not only about generation and storage, but also about optimally matching supply and demand. By using smart meters and advanced grid management software, you continuously keep track of current consumption and available energy. This allows you to make adjustments exactly in time when demand rises or falls.

The importance of energy hubs

Energy hubs are essential for a successful energy transition because they generate, store and use renewable energy locally in a smarter way. This way there is less pressure on the power grid and CO₂ emissions are reduced. An energy hub also allows you to reduce dependence on fossil fuels and switch to cleaner alternatives more quickly.

Sustainability and CO2 reduction

An energy hub helps you reduce your carbon footprint. Thanks to local generation, for example with solar panels or wind turbines, you reduce your dependence on fossil energy sources and directly limit CO₂ emissions.

Cost savings and efficiency

An energy hub can help you lower your energy costs. Because you make better use of locally generated power, you need to buy less energy at higher peak rates. You also benefit from shared infrastructure and maintenance, which further reduces overall costs.

Energy hubs in the Netherlands

The Netherlands is in full swing when it comes to the development of energy hubs. More and more regions and sectors are working together on smart solutions that combine local generation and storage of sustainable energy. These energy hubs in the Netherlands strengthen the stability of the grid and make the switch to green energy sources much more accessible.

The role of energy hubs in business parks

Business parks lend themselves well to the development of energy hubs because companies often generate their own energy or have a large energy demand. Together with governments and grid operators, they are pursuing pilots that focus on sustainable generation, storage and smart energy management.

Organizations such as the Rijksdienst voor Ondernemend Nederland (RVO), Firan and Netbeheer Nederland offer support in setting up and optimizing these hubs so that all participants benefit from lower costs and a more stable energy supply.

Challenges and future prospects

Energy hubs offer many opportunities, but to realize their full potential, some key bottlenecks still need to be addressed. For example, the limited capacity of the current power grid presents a serious challenge, as does the complex regulatory environment that often accompanies large-scale energy projects.

Nevertheless, the future picture is promising. Thanks to the deployment of smart technologies and close cooperation between different players, the chances are increasing that energy hubs can be rolled out more widely in the near future.

Grid capacity and flexibility

When setting up energy hubs, grid operators regularly run into problems with peak loads and limited grid capacity. At times of high energy demand, the grid must offer sufficient capacity to handle these peaks. At the same time, surplus energy is created at other times.

Energy hubs are responding to this with smart electric vehicle charging strategies, energy storage and flexible demand management. This approach makes it possible to respond dynamically to changes in supply and demand. This makes more efficient use of the available grid capacity and creates room for further growth.

Cooperation and regulation

The successful rollout of energy hubs hinges on good cooperation between governments, businesses and residents. Clear laws and regulations are crucial: only then will all parties involved gain the trust and legal clarity needed to invest in innovative solutions.

Fortunately, we see policy makers creating more and more space for experiments and large-scale applications. This not only promotes innovation, but also paves the way to a future-proof, sustainable and reliable energy system.

Taking the next step in energy transition with energy hubs

Energy hubs offer a forward-looking solution for a more stable and sustainable energy supply. They bring together local generation, storage and smart energy management, reducing your dependence on fossil sources and relieving the existing grid. This not only lowers your carbon emissions, but you also benefit from cost savings and a more efficient use of energy resources.

At Frax, we provide the innovative battery energy storage systems that are an indispensable link in any energy hub. We help you with plug-and-play solutions that are user-friendly and reliable, so that you can effortlessly respond to the energy transition. The further development of energy hubs is promising and gives you the opportunity to actively contribute to a sustainable and flexible energy infrastructure.

This post was last updated on: 

7/4/2025

Bob Hermans

Founder & CEO

After being active in the energy market for more than a decade, I decided to found Frax in 2023. With Frax, I want to support installers with smart, plug-and-play battery storage systems that really make a difference. My passion lies in renewable energy and innovation, and I believe that simple, reliable solutions are the key to a future with more efficient energy use.

Wondering what we can do for you?

Meet our innovative, easy-to-use energy storage and management solutions. Developed to make your energy use smarter, more sustainable and reliable.

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