Netherlands: Installed Capacity Doubles, Grid Connection Pressures And Policy Changes Coexist

 

Despite still being in the early stages of energy storage market development, the Netherlands leaps into fourth place in Europe thanks to strong large-scale energy storage installations (900 MWh) in 2025. Total new market capacity is expected to double from less than 500 MWh in 2024 to 1.5 GWh that year. Behind-the-meter storage will contribute approximately 500 MWh, while large-scale storage projects will contribute 900 MWh.

 

Driven by the elimination of double taxation, policy endorsement from the government and grid operators, and TenneT's 2030 grid connection target of 9 GWh, large-scale energy storage is growing rapidly, with 1.4 GWh of installed capacity already installed by the end of 2024. Despite challenges such as grid connection structure, land allocation, and grid connection point approvals, the neutral scenario projects that new installations in this segment will reach 4.6 GWh by 2029, bringing the cumulative installed capacity to 14.7 GWh.

 

The residential energy storage market faced a major policy shift in 2024 with the phasing out of net metering. The original plan to phase out net metering from the end of 2023 was rejected by the Dutch Senate in early 2024. Subsequently, the government announced in May 2024 that the system would be completely terminated on January 1, 2027, with no transition period. This change spurred approximately 100,000 households to install solar systems between March and May 2024, resulting in a short-term installation surge. According to the medium scenario, annual new residential energy storage installations in the Netherlands will reach 1.8 GWh by 2029, accounting for 20% of total new capacity.

 

The Dutch commercial and industrial energy storage market is still in its early stages, with primary application scenarios including commercial electrification, self-generation and consumption, peak shaving, and backup power. Despite current low utilization, this market segment is expected to grow rapidly at an annual rate of 80–90% after 2025, reaching an estimated annual addition of 2.5 GWh by 2029.

 

Across all three market segments, the Netherlands' newly installed battery energy storage capacity is projected to reach 8.8 GWh by 2029, with over half coming from large-scale projects. By the end of 2029, the country's cumulative installed energy storage capacity is projected to reach 24.3 GWh. As a key tool for alleviating grid congestion and improving local power consumption and dispatch capabilities, energy storage will play a key role in achieving the Netherlands' target of a 39% renewable energy share by 2030.