Almere has been expanding at a rapid pace for decades and aims to develop into the Netherlands’ fifth technological hotspot with the arrival of a new high-tech campus. However, according to Ronald Huisman, Professor of Energy Finance at Erasmus School of Economics, one factor threatens to seriously hamper those ambitions: an overloaded electricity grid.
The economy of Flevoland has grown by 150 per cent over the past thirty years. With the arrival of a High Tech Campus at the Weerwater, where chip machine manufacturer ASM International (ASMI) is investing hundreds of millions of euros, that economic acceleration is expected to continue. The campus is set to create at least 1,200 direct jobs, with a multiple in indirect employment. Yet this development is under pressure. Flevoland is connected to the most heavily congested electricity grid in the Netherlands. New large-scale connections are not expected to be possible again until after 2033. Hundreds of companies are currently waiting for capacity.
According to Huisman, this is not a local issue but a national problem with far-reaching consequences. ‘The increase in offices, factories and homes is all being delayed as a result,’ he states. In his view, grid congestion forms a direct brake on economic growth.
Competitiveness under pressure
Huisman points out that the energy transition and economic development are inextricably linked. He refers to the report on European competitiveness by former ECB President Mario Draghi. ‘That report shows that the competitiveness of the European Union is closely tied to sustainable energy,’ says Huisman. ‘If the energy transition stalls, it will also limit our economic growth.’
According to Huisman, the current situation is partly the result of past policy choices. ‘In the Netherlands, we have focused too one-sidedly on generating sustainable energy, without developing the energy grids at the same pace,’ he explains. ‘Electricity demand is growing so rapidly that it is logical the grids will eventually become full.’ At peak moments, for example when the sun is shining brightly, large quantities of renewable electricity are fed into the grid simultaneously, even when demand is relatively low. This increases pressure on the system.
Storage and smarter use are crucial
According to Huisman, the solution lies not only in expanding the network, but also in using energy more intelligently. ‘We must learn to store sustainable energy that is not immediately required,’ he argues. Without sufficient storage capacity, energy is lost and the grid becomes overloaded more quickly. He also advocates more flexible energy use by companies. ‘Carry out major operations at times when a great deal of renewable energy is available. Or consume less when grid congestion threatens. That congestion does not persist throughout the entire day.’
For new establishments, such as those on the Almere campus, this means companies must organise their energy supply in a fundamentally different way. ‘You can no longer assume that there will always be a cable with unlimited capacity,’ says Huisman. ‘Companies must be able to generate their own energy and integrate storage into their business model.’
Growth dependent on energy
The Municipality of Almere and the province are working with grid operator Liander on solutions, including grid reinforcement and project prioritisation. Nevertheless, according to those involved, the situation remains “highly uncertain” for developers and entrepreneurs.
For Huisman, the conclusion is clear: without structural solutions to grid congestion, not only Almere’s growth but also the broader earning capacity of the Netherlands will come under pressure. ‘The energy transition is not a side issue,’ he emphasises. ‘It is a prerequisite for economic growth.’
- More information
Read the interview given by Ronald Huisman to Vastgoedmarkt.nl above. For further information, please contact Ronald de Groot, Media & Public Relations Officer at e Erasmus School of Economics: rdegroot@ese.eur.nl, +31 6 53 641 846.
