Local energy gives companies room to grow, even with a full power grid

Local energy gives companies room to grow, even with a full power grid

Companies that want to expand or become more sustainable, but are currently unable to get a heavier grid connection, are regaining perspective thanks to a smart mix of local solar and wind generation, storage, and energy sharing between businesses. Model calculations by research agency EqoLibrium show that companies can often create their own solutions to grid congestion — especially when demand is too high — allowing them to move forward with their sustainability goals. A survey by the Dutch Association for Sustainable Energy (NVDE) confirms this trend: businesses across the country are taking local energy initiatives despite grid congestion.

Olof van der Gaag, chairman of the NVDE, explains: “Entrepreneurs are resourceful. Their drive to innovate and reduce dependency on fossil fuels is strong. When they learn that a larger grid connection is delayed, they try to avoid grid peaks with a combination of local generation (solar and wind), energy sharing, and storage to meet more of their own electricity demand. In some cases this is already working well. In others, barriers remain — including municipal or provincial policies that may stand in the way of ambition.”

EqoLibrium study: key findings

Commissioned by NVDE and Holland Solar, EqoLibrium calculated how grid capacity could be created across different types of business parks. Key takeaways:

  • Investments in local renewable energy on business parks can be a win-win, reducing both grid congestion and energy costs.
  • A mix of solar and wind power, energy storage, and mutual energy delivery offers the best prospects for unlocking grid space for business development.
  • Collaboration between companies on a business park is crucial to maximize the benefits, with joint investments enabling new growth without needing to expand the electricity grid

Their model scenarios show that, despite higher capital costs, the energy transition can lead to lower operational costs, with annual energy bills reduced by up to 50%. Across all cases studied, combining wind and solar was more cost-efficient than using solar alone. Additionally, peak demand reductions created about 15% extra net capacity in their examples.

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