Power grid collapse in the Netherlands: economic chaos is imminent!

Power grid collapse in the Netherlands: economic chaos is imminent!

There is a lot of trouble with the energy supply in the Netherlands. The country switched from gas to electricity in a very short space of time, but the infrastructure cannot keep up. The region is struggling with narrow power grids that are unable to meet growing demand. Loud World Thousands are waiting for a connection. Over 11,900 companies and numerous public institutions such as hospitals and fire stations are on hold. In some regions it will probably not be possible to tap into a new connection cable until the mid-2030s.

What is particularly alarming is that investments in electricity supply could fail if companies continue to wait for their connections. The high-tech region of Brainport around Eindhoven has already lost some investment due to power rationing. If politicians do not change course, the country's growth could be significantly slowed. CPM points out that electricity rationing serves the truth: in a country that is so quickly transitioning to a greener economy, the utility grid is now reaching its limits.

Rationing and climate goals

The rationing is a direct response to the high demand, which was further fueled by various subsidies, for example for electric cars and heat pumps. Aiming to meet EU decarbonization targets, the Dutch government has initiated an intensive transition to electricity over the last decade, while other energy sources such as natural gas and coal are increasingly being phased out. But national power grid operator Tennet warns that modernization cannot keep up with rising demand. There is money, but everything takes time to get on track. The government estimates that investments of around 200 billion euros will be necessary by 2040 just to expand cables and substations.

In addition, high electricity prices come into play. Statistics show that prices in the Netherlands are around 30 euros per megawatt hour higher than in France. The reason? On hot, sunny days with little wind, prices rise because demand is high and supply is limited. The Heinrich Böll Foundation has also shown that the shift towards renewable energies makes national and European energy targets increasingly necessary.

A look at the future

Politicians are called upon to do so, and Tennet and regional network operators are already offering contracts that enable households to purchase electricity more cheaply outside of peak times. Next year there will even be special contracts for large companies that are not allowed to use their connections during peak times. These measures are intended to help promote a more conscious use of energy and are already being promoted via television and social media campaigns.

The challenges for the Dutch energy supply are clear. We can only hope that the responsible decision-makers quickly turn things around and set the course in the right direction. Because one thing is certain: the bottlenecks in the electricity grid are not just a local problem, they are a signal for other EU states that also want to jump on the green bandwagon. There's a lot of work waiting there now.