Grid congestion and what you notice about it

More and more you hear that the power grid is at its limit, but what does that really mean for you? Grid congestion is one of the biggest challenges within our current energy transition: the moment when there is simply not enough space left on the power grid to meet peak demand. As a result, new projects or expansions on the grid may be restricted or even refused. This problem puts pressure on businesses, households and renewable plans for the future.

Bob Hermans

Bob Hermans

2/6/2025
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Yet we need not let these obstacles hold us back. On the contrary, grid congestion is precisely the reason to look for smart, innovative solutions that will make your energy supply more efficient and sustainable.

What is grid congestion?

Grid congestion is the situation where the power grid becomes overloaded, causing too much demand or supply of power to handle everything efficiently. At a time when we are generating and consuming more and more energy - think electric cars, heat pumps and solar panels - the pressure on the grid is growing rapidly.

Not having enough capacity available at peak times or in certain areas can lead to restrictions on new connections or expansion of existing facilities. This directly affects your plans and projects, as you may not always be able to supply or purchase the desired amount of power.

Causes of grid congestion

The main cause of grid congestion is the increasing pressure on the power grid. Due to the growing demand for power - including for electric vehicles, heat pumps and more and more electric appliances - consumption at peak times is increasing faster than the grid can keep up with. In addition, the rise of renewable energy sources such as solar panels and wind turbines is causing fluctuating supplies of electricity, causing additional peaks and troughs in energy production. The existing grid often cannot cope with this and sometimes needs to be substantially expanded, which requires time and investment.

Aging infrastructure also plays a role. In many areas, capacity has been at the same level for years, while consumption and production of electricity have increased dramatically in a short period of time. This makes it difficult to reserve sufficient space on the grid for new projects.

Grid congestion map: where is grid congestion?

Grid congestion is uneven and occurs only at certain times of the day. In some regions, for example, the power grid is already congested during morning and evening peaks, while in other areas there are virtually no constraints. Especially in areas where many new projects or renewable energy sources converge, the bottleneck can quickly occur. By having a good understanding of the local situation, you can better assess what steps you can take to avoid problems or delays.

Want to know exactly where grid congestion is occurring? Then consult the grid congestion map of Netbeheer Nederland. Here you can see at a glance the current state of affairs in your region and know whether there is still available capacity for your project.

Effects of grid congestion

Grid congestion affects both businesses and households, as well as the parties responsible for maintaining and expanding the power grid. If insufficient capacity is available, new requests for connection or expansion may be delayed or even refused. This inhibits the growth of sustainable initiatives, as solar and wind projects are less likely to be connected. Take-up or feed-in from existing installations can also be restricted, making it less efficient to use your energy resources.

For many companies, this means a direct impact on their investment and growth potential. With a large project, you may have to adjust or postpone your plans simply because grid capacity won't allow it.

In addition, grid congestion can lead to higher costs, as smartly spreading energy consumption or implementing alternative measures often requires additional investment. Households can also face possible waiting times for new (solar panel) installations or restrictions in the feed-in subsidy. At the heart of the problem is the reduced ability to respond quickly and flexibly to the increasing demand for electricity and renewable energy generation.

What grid congestion means for your business

For businesses, grid congestion can be quite a challenge. For example, do you want to expand by connecting new machinery, electrifying the fleet of vehicles or installing a solar panel installation? Then limited grid capacity can cause these plans to be delayed. You may face longer waiting times or even rejections for a higher connection value, forcing you to look for alternative solutions.

In addition, unexpected grid constraints can increase operating costs. For example, you may be forced to purchase power at peak times at higher rates, when your production schedule may not be designed to do so. That can lead to inefficiencies and lower profitability. At the same time, grid congestion also presents opportunities to invest in smart energy management systems or energy storage. These solutions allow you to spread some of the peak load and arm yourself against future constraints.

How grid congestion affects solar panels

For solar panel owners, grid congestion means that you may not always be able to feed all the energy generated back to the grid. When the grid has reached its maximum capacity, the grid operator may limit throughput or even temporarily disconnect it. As a result, your yield from solar energy will drop and you will see this reflected in a lower fee for delivered back power. In some cases, it may not even be possible to connect a new solar panel system if the grid operator runs out of space on the power grid.

This can be disappointing, especially when you count on recouping some of your investment through feed-in. At the same time, it is an important reason to think about sustainable and self-sufficient solutions such as your own energy storage system. With a BESS (Battery Energy Storage System) from Frax, you can store generated energy and use it at a later time. This way, you take full advantage of your solar panels, even if the grid is temporarily overloaded.

Grid congestion solutions

Grid congestion is a pressing problem that governments, grid operators and market participants are all aware of. A great deal of effort is therefore being put into finding ways to reduce and absorb the pressure on the power grid. This involves large-scale, national measures as well as local initiatives that can be implemented more quickly. In the short term, many parties are focusing on smart management of energy supply and demand. In this way, energy consumption is spread and we make better use of existing capacity.

At the same time, large-scale infrastructure investments are underway. New cables, transformer substations and innovative technologies such as the Frax energy management system (EMS) are helping to cope with future peaks.

What is happening to strengthen the power grid?

To tackle grid congestion, government, grid operators and market parties are working on structural energy solutions that will make the power grid more robust and flexible. A stronger grid ensures that you are less likely to run into limitations and that your investments in sustainability yield maximum returns.

  • Expansion and renewal of grid infrastructure: new high and medium voltage substations are being built and existing lines are being upgraded to carry more power.
  • Implementation of smart grids (smart grids): advanced metering and control technology allows grid operators to better match supply and demand on the grid.
  • Large-scale energy storage: investing in battery storage systems (BESS) and other storage methods makes it possible to balance peaks and troughs in energy production.
  • Tariff incentives and flexibility markets: dynamic tariffs and market mechanisms encourage businesses and consumers to shift their consumption to off-peak hours.
  • Cooperation between grid operators and market participants: joint projects and knowledge exchange help to implement innovative solutions faster.

What you can do yourself against grid congestion

It is not only national measures or major grid reinforcements that contribute to a solution. As a consumer or business, you can take steps today to reduce pressure on the grid. Here are some options:

  • Use green electricity: by choosing renewable energy sources, you reduce your carbon footprint and contribute to a better balance between supply and demand. Consider green batteries as well.
  • Purchase a home battery: a home battery system with a large battery allows you to store excess energy and use it at a later time, which helps smooth out spikes on the grid.
  • Smart control: by running appliances at favorable times - for example, when renewable energy is plentiful - you avoid overloading and sometimes benefit from lower energy rates.
  • Energy-conscious planning: spread the charging of electric vehicles and other large consumers as much as possible, so that you don't create peak loads all at once.
  • Energy data and analysis: use software or systems that map your energy consumption so you can make targeted savings and avoid unnecessary spikes.
  • Professional energy management: consider talking to a specialist. They can advise you on the right solutions for your situation, such as integrated battery storage systems and other techniques.

First steps against grid congestion with Frax

Want to get started today on reducing grid congestion and getting more control over your energy supply? Frax offers customized solutions that can be deployed immediately, for both residential and industrial applications. With our plug-and-play battery storage systems, you can store excess energy and deploy it at peak times. Plus, the Frax energy management system (EMS) provides smart control and insight into your energy consumption, so you can take concrete steps quickly.

By investing in a system from Frax, you are showing that you are ready for the future. You are not only doing yourself a favor, but also the grid and the environment. Together we tackle grid congestion and make renewable energy accessible and profitable for everyone. Feel free to contact us if you want to know more about the possibilities, or if you want advice on which solution is best for you.

This post was last updated on: 

1/4/2025

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.

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