Building the energy system of the future
Against the backdrop of the developments on the global stage and in our country and our sector, we are facing one of the biggest transformations ever: the transition to a sustainable and resilient system in which energy is reliable, affordable and available. These are major changes to how we use energy and where we source that energy. This complex task affects all our customers, the government and the sector. A new system requires far-reaching changes and substantial investments, clear choices and a clear, jointly supported course of action. Alliander is at the centre of this transition. We are creating the infrastructure for the future that will allow the Netherlands to develop and become more sustainable, reduce our dependence on imported fossil fuels and increase our resilience.
Sustainability with a new mix of energy carriers
The energy mix in the Dutch energy system is changing. Natural gas remains a significant fuel in the context of the transition. The use of coal, oil and natural gas is declining, while the use of electricity is increasing sharply and may even triple. Other energy carriers, such as hydrogen, green gas and heat, therefore remain necessary. The demand for energy is falling due to energy savings and because electrification is more energy-efficient.
In order to meet energy demand in a sustainable manner, power generation with solar panels and wind turbines is increasing. Biomass and nuclear energy are used to a limited extent in order to diversify our energy sources. The consequence of high levels of wind and solar power generation is weather dependency and, with it, volatility in supply, with the energy supply potentially fluctuating by several dozen gigawatts on a daily basis.
We can only create the energy system of the future by working together.
Furthermore, (sustainable) gases and district heating networks are important. Hybrid energy solutions contribute to rapid carbon emission reduction and, with smart control, can relieve pressure on the electricity grid. District heating networks contribute by making more energy sources available. Solutions like these are necessary to make the energy mix sufficiently diverse and improve security of supply, system efficiency and affordability.
Need for flexibility in contracts and usage
The energy transition demands a great deal from us. The requirement for electricity is growing faster than ever, while the pressure on the energy system continues to mount. That is why we are investing in the electricity grid at historically high levels and significantly scaling up our workforce, resources and processes. At the same time, we see that these efforts do not automatically lead to the speed of response that society expects from us. The available physical space is scarce, permit issue procedures are complex and time-consuming, and technicians are in short supply. As a result, the expansion of the grid continues to lag behind the growth in demand, increasing the risk of grid congestion, which has very noticeable social and economic consequences.
Although we continue to invest and scale up significantly, there is a limit to what we can do. We cannot install extremely heavy-duty grids everywhere simply because a peak in demand occurs occasionally. This is not feasible, not desirable from the point of view of efficiency and not affordable. That is why we need to change how we think and use the energy networks differently within the limits of safety and reliability. With that in mind, we will subject our assets to greater loads where we can responsibly do so, prioritise flexibility as our primary solution choice and find a new balance between the expectations of customers and value chain partners.
Through flexibility, we can better accommodate and balance out the mismatches between the time of generation and the time when there is demand, which allows us to connect more customers, limit investments and space requirements, and make the energy system more robust against a backdrop of increased risks. The solutions to this problem include 'congestion mitigators' (technologies and customer developments that help reduce grid congestion), batteries and other forms of energy storage, as well as digital controls to make smarter use of existing capacity.
Collaboration is needed
We can only create the energy system of the future by working together. We are working with contractors and suppliers to accelerate the construction of new infrastructure. In collaboration with market parties, we are developing smart solutions that reduce grid congestion. Together with customers, we are taking action to promote flexible and conscious grid usage, which will enable us to extract more capacity from the existing grid. We are helping authorities speed up spatial planning decisions and permits. Together with our regulators and the national government, we are initiating the regulations and policy scope that make this implementation possible. Only by working together, coordinating our efforts and moving in the same direction can we keep the energy system affordable, practically feasible and future-proof.
