Incentive program for energy hubs

The energy transition is in full swing and requires smart, innovative solutions to better match energy supply and demand. One of the most promising initiatives in this is the energy hub incentive program. This program was created specifically to promote cooperation between different parties and enable joint energy solutions. Examples include sharing locally generated solar or wind energy, optimizing energy storage and reducing grid congestion.

Bob Hermans

Bob Hermans

19/8/2025
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An energy hub creates a hub where multiple energy consumers and producers meet. Through smart control and collaboration, these hubs can maximize the use of renewable energy while reducing costs and load on the power grid.

The program offers opportunities to work together on a future-proof energy system. In this text you will discover how the program works, why it is so important and what opportunities it offers to make your sustainable ambitions a reality.

What is the energy hub incentive program?

The energy hub incentive program is a government initiative designed to accelerate the development and realization of local energy hubs. An energy hub is a collaboration between multiple parties, such as companies, institutions, housing associations and sometimes individuals, who jointly generate, store and distribute renewable energy. The program encourages these collaborations by enabling financial support, advice and knowledge sharing.

The aim is to improve the balance between energy supply and demand at the local level while helping to reduce pressure on the national power grid. One way this is done is by leveraging innovative technologies for energy storage (for example, with neighborhood batteries), smart metering and control systems, and shared infrastructure. Projects eligible for the incentive program often have to demonstrate that they contribute to sustainability, efficient use of energy and relieving pressure on the energy grid.

In addition to financial support, the program also focuses on removing practical and organizational barriers. As a result, energy hubs can be realized faster and more effectively, with lasting benefits for the parties involved and the environment.

The importance of energy hubs

Energy hubs play a crucial role in the transition to a sustainable and future-proof energy system. Demand for electricity is increasing and supply is increasingly coming from fluctuating, renewable sources such as solar and wind. This makes it essential to organize energy smartly and locally. Energy hubs make it possible to coordinate production, storage and consumption of energy within a community or business park.

By harnessing energy locally, pressure on the national power grid is reduced. This helps prevent grid congestion. In addition, energy hubs promote cooperation between different parties, making investments in renewable energy projects more attractive and profitable.

Another important benefit is that energy hubs increase the flexibility of the energy system. This ensures not only a more stable energy supply, but also lower energy costs for participants. Ultimately, energy hubs contribute to accelerating the energy transition and achieving climate goals.

Goals of the outreach program

The energy hub incentive program is designed to both accelerate the energy transition and make energy supplies more reliable and efficient. The core of the program lies in strengthening local collaborations and smart utilization of existing and new energy infrastructures. These are the main goals of the program:

  • Accelerating the energy transition: by fostering collaboration and innovation, the program helps accelerate the realization of renewable energy projects at the local level.
  • Reduce grid congestion: energy hubs relieve congestion on the power grid by balancing supply and demand locally, reducing transport of large amounts of energy over long distances.
  • Increase energy self-sufficiency: local generation and storage reduce participants' dependence on external energy sources and market price fluctuations and possibly grow to off grid energy supply.
  • Encourage innovation: the program encourages the adoption of new technologies and smart systems, such as advanced energy storage and demand-side management.

By combining these goals, the incentive program contributes not only to a more sustainable future, but also to a more robust and flexible energy system ready for tomorrow's challenges.

Four pillars of approach to energy hub incentive program

The energy hub incentive program is built around four pillars that together ensure an integrated and effective approach. These pillars address both the technical and organizational side of energy hubs, focusing on innovation, collaboration, financing and knowledge development. By combining these elements, the program can deliver sustainable and scalable results.

Technological innovation

The first pillar revolves around stimulating technological innovation. This includes the development and application of advanced storage technologies, smart grids and digital platforms that optimally match supply and demand. Innovation makes energy hubs more efficient, flexible and future-proof.

Local and regional cooperation

The second pillar focuses on strengthening collaborations between companies, municipalities, energy cooperatives and other stakeholders. Successful energy hubs are often the result of well-aligned partnerships in which knowledge, resources and infrastructure are shared.

Financial support and incentives

The third pillar consists of providing financial incentives, such as grants, loans or tax breaks, to make the realization of energy hubs feasible and attractive. This lowers investment barriers and increases the likelihood of successful projects.

Knowledge sharing and education

The fourth pillar emphasizes the dissemination of knowledge and experience. By facilitating case studies, trainings and networking events, stakeholders learn from each other's successes and challenges. This strengthens the learning process and accelerates the development of new energy hubs.

The scheme in practice

In practice, the energy hub incentive program provides a clear roadmap for taking initiatives from idea to realization. In fact, the scheme is designed to provide support at different stages of the project. This can range from grants for the development phase to help with scaling up when the initial results are positive.

In addition, knowledge networks and advisory structures provided by the program are often used. This gives projects not only financial support, but also access to expertise and practical experience, which significantly increases the chances of success.

Phase 1: Development and start-up

The first phase focuses on setting up the energy hub. This involves forging partnerships, preparing technical designs and developing business cases. The incentive program can contribute in this phase with start-up grants, project guidance and connecting relevant parties. This preparation phase is crucial for creating a solid foundation on which the energy hub can grow.

Phase 2: Scaling up

Once the energy hub is successfully operational, the scale-up phase will follow. This phase looks at expanding capacity, connecting new participants and integrating additional technologies for storage and energy management.

The program supports this process by making additional funding available, providing access to specialized knowledge and facilitating collaborations with new stakeholders. This will enable the energy hub to develop into a robust and lasting solution for sustainable energy supply in the region.

Impact on business owners and developers

For entrepreneurs and developers, the energy hub incentive program offers both opportunities and challenges. A key advantage is that the program provides access to financial resources and technical support, allowing innovative projects to be realized more quickly. This lowers the threshold for investment in renewable energy infrastructure and enables experimentation with new technologies and cooperation models.

In addition, energy hubs allow entrepreneurs to better match their energy consumption to the availability of renewable resources, which can lead to lower energy costs and a smaller carbon footprint. New business opportunities are also emerging, such as offering energy storage or smart energy control as a service to other participants in the hub.

For developers, the program means that they can create projects that are not only technically feasible but also economically viable. The collaborative nature of an energy hub makes it possible to share risks and investments, while increasing returns for all participants. However, participation does require a long-term vision, good coordination between partners and a willingness to work together in a dynamic and sometimes complex environment.

Take advantage of energy hub incentive program

To take advantage of the energy hub incentive program, it is important to start with a clear plan and an engaged network of partners. This often begins with identifying potential participants, such as businesses, municipalities, energy cooperatives and other local parties that would benefit from joint energy solutions. Next, a shared vision is developed, defining goals, technical capabilities and funding needs.

An application can then be submitted to the relevant subsidy office or implementing agency. The program usually sets specific conditions that projects must meet, such as a minimum size, demonstrable CO₂ reduction and the use of renewable energy sources. It is important to go through these criteria carefully and substantiate them in the application. This often requires a detailed project plan, including technical specifications, a budget and a time schedule.

Once approved, implementation can begin, where the program can provide support in the form of grants, technical guidance and access to knowledge networks. Regular reporting of progress and sharing of results keeps the project in line with the program's goals and increases your chances of follow-up support for expansion or scale-up.

Invest in energy hub incentive program for sustainability

Promoting energy hubs is a powerful step toward a future-proof and sustainable energy system. The transition to a more sustainable energy supply requires decisiveness and cooperation. By stepping in now, you will benefit from the available subsidies and knowledge sharing offered by the incentive program. Now is the time to play an active role in the energy transition and work together on innovative solutions that will make a lasting difference.

Want to enhance your project idea with reliable energy storage and smart energy management solutions? Frax is a specialist in Battery Energy Storage Systems (BESS), offering innovative, sustainable and user-friendly systems that perfectly match the ambitions of energy hubs. Find out how Frax can support your initiative and work with you to build a future-proof energy system.

This post was last updated on: 

2/8/2025

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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