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Overcoming grid congestion

Innovative solutions for tomorrow’s energy demand

The rapid shift to sustainable energy is driving a surge in electricity demand. While green electricity represents a big part of the future (next to energy storage, hydrogen and others), the current infrastructure of the Dutch electricity grid is struggling to keep pace. Grid congestion – a shortage of capacity within the electricity transport and distribution network – has become a major obstacle in the energy transition. Here, we explore the innovative solutions and strategies being implemented by grid operators, businesses, and technology experts. In this context, Deloitte actively supports collaboration and provides data-driven solutions to overcome grid congestion and help build a resilient, future-proof energy system.

Key takeaways on grid congestion

Electrification is surging in industry, transport and buildings, while energy supply shifts from fossil fuels to decentralised renewables.

Rapid demand growth and decentralised renewables create three main grid issues: (I) capacity limits, (II) seasonal mismatches, and (III) hourly fluctuations, making seamless energy access difficult, thereby impacting economic growth.

  • Suppliers of renewables: Maximise renewable value amid price volatility.
  • Grid operators: Shift from mere grid operations to large-scale grid expansion projects under time pressure.
  • Energy retailers: Develop models to balance and trade on decentralised supply and demand.
  • Energy-intensive end-users: Reduce grid reliance and optimise usage.
  • Government: Reform regulations for a swift, secure transition.
     

Tackling these challenges system-wide – rather than in silos – promotes faster, more impactful solutions for congestion and growth.

With its deep expertise across the electricity sector, Deloitte can help drive this progress, fostering collaboration across producers, operators, end-users, retailers, and governments.
 

Adapting grid operations: from stability to agility

For years, grid operators have focused on stability; their core mission was to ensure affordable and reliable power. 

“Grid operators are accustomed to providing reliability, but the current need to expand networks on a massive scale demands a completely different way of working.” 

Laurens Petten - Strategy Partner at Deloitte

This shift brings substantial challenges: not only are operators facing shortages in contractors and materials, on top of that their internal processes and culture struggle to keep pace with the evolving demands. To electrify the Netherlands on a large scale, significant transformations within these organisations are required.

Innovating with temporary solutions

To ease the immediate pressure, grid operators and companies are exploring creative solutions to relieve grid congestion.

“An interesting new product is the Group Transport Agreement, that enables
participants to align and optimize their transport needs.”

Nikoo Delgoshaie - Sector Leader, Power, Utilities & Renewables

 

 

And Laurens explains that industrial areas are beginning to share electrical connections to increase joint capacity – a practice previously discouraged. “Though these solutions offer temporary relief, they rarely represent long-term fixes for the complex issues of grid congestion.” One cold storage facility, he points out, now raises its temperature at certain times in the day from -18 to -12 degrees Celsius to redirect electricity to nearby businesses, and gets paid by its neighbours for that additional capacity. “It’s an innovative solution, but the fact that it makes headlines shows how uncommon these measures still are.” Such efforts highlight the market’s creativity and underscore the need for more enduring structural changes at scale.

The essential role of integrated value chains at grid operators

Working in integrated value chains is crucial to ensure reliable grid operation while embracing change. They enable grid operators to better manage the transformations necessary for solving grid congestion.

As Deloitte partner Roy Seton emphasises, continuous innovation is essential to effectively address grid congestion, as operators can only achieve efficiency by integrating the latest technologies into daily operations. Beyond operational improvements, grid operators also need to collaborate with external partners, like new entrants in battery development, to enhance capacity and reliability.

Laurens highlights that “investment in workforce expansion, innovative technologies and external partnerships are essential.” He notes that while many of these shifts are still managed from inside isolated teams or departments, some grid operators are beginning to coordinate these shifts in integrated value chains. Setting up integrated value chains requires a cultural shift within organizations that have long been focused on stability. He concludes: “Without a strong integrated value chain approach, necessary changes simply won’t happen fast enough”.
 

Key focus areas for organisational transformation

These focus areas collectively drive an adaptable, high-performing organisation, ready to tackle the energy transition’s demands. They can be addressed by different layers in the business as part of the integrated value chains and encompass collaborations with the ecosystem, from municipalities to contractors.

Expanding workforce and integrating new employees requires efficient onboarding, training, and cultural alignment led by Operations and HR.

Advanced technology, such as machine learning and grid simulation, enhances grid utilization but requires significant investment and coordination across IT, Cybersecurity, and Asset Management.

Building expertise in system integration and digitisation is crucial, with a focus on continuous learning across Operations, Asset Management, and HR.

Strategic decisions on internal versus outsourced operations improve efficiency, requiring close collaboration between Operations and Procurement.

Effective leadership and communication are essential to guide transformation, engaging all stakeholders.

Aligning structure with strategic goals fosters agile decision-making and collaboration through cross-functional teams and flatter hierarchies.

Implementing clear KPIs supports a culture of continuous improvement, focusing on structured, performance-driven outcomes.

Building agility and responsiveness while maintaining reliability and safety reshapes organizational culture, led by HR and Leadership.

Harnessing advanced data-driven insights for precision grid upgrades

Data-driven technology is essential for managing grid congestion, offering the ability to monitor and forecast supply and demand nearly real-time, and to proactively identify potential bottlenecks. Grid operators increasingly encounter customers who double as small-scale energy producers, requiring a more adaptable and innovative approach to network management. Laurens emphasises that continuous innovation is essential to effectively address grid congestion, as operators can only achieve efficiency by integrating the latest techniques into daily operations.

Traditional forecasting models often fall short, Laurens explains, but new models, such as those in Deloitte’s ElectrifiedGrid, combine macroeconomic data with individual customer usage patterns. With these tools, grid operators gain insights into demand trends that help them pinpoint likely bottlenecks, allowing for more strategic, informed decision-making.

Deloitte’s ElectrifiedGrid system is already implemented by Belgian multi-utility DSO Fluvius, which allows grid operators to predict demand peaks and to better utilize buffer capacity.

“With data-driven technology, we can foresee when peaks will occur and determine actions to manage them, improving buffer use and reducing wait times for new connections.”

Roy Seton - Partner at Deloitte

Data analytics and AI bring several key advantages in addressing grid congestion:

ElectrifiedGrid: a Data-Driven Solution to Combat Grid Congestion

Aligns supply and demand more effectively, forecasts impacts of new technology and policies, and maximises local renewable energy use while reducing costly grid expansions.

Analyses meter-level data to predict load patterns, aiding in effective peak reduction strategies.

Automates routine tasks, allowing technical teams to focus on strategic, innovative projects.

Supports smarter, proactive investments to optimise capital and resources.

Technology innovations and demand aggregation by energy-intensive industries for lasting impact

Creating lasting solutions requires collaboration among grid operators, major energy consumers, and technology innovators. Laurens explains that although large consumers, such as energy-intensive heavy industries, sometimes develop temporary fixes for grid congestion, the critical challenge lies in scaling these solutions into permanent frameworks. “Even with grid operators addressing various issues and expanding capacity, congestion won’t disappear entirely. Major companies looking to electrify must also take responsibility in optimising their energy use, and collaborating with their ‘neighbours’ to pool demand” he adds.

Collaboration across the energy sector will be key. High-demand companies, for example, can reduce grid reliance by adopting smarter energy practices, such as using advanced energy storage solutions and creating flexibility in energy intensive processes to align energy use with sustainable supply. As Nikoo points out: “There’s still a significant overcapacity in the network, as connections are generally based on peak demand.” By pooling demand, large consumers help operators optimise distribution and alleviate grid stress.

Maximising buffer capacity through data insights and strategic partnerships could also reduce the need for costly expansions. “If we can accurately monitor the network and predict where and when peaks will happen”, Roy adds, “we can better utilize the infrastructure already in place and prioritize the limited construction capacity to those areas with highest benefit.”

Quick wins for reducing grid stress and advancing renewable energy

The following short-term steps provide immediate relief for grid congestion, while accelerating the shift toward a sustainable energy future.
 

Large-scale storage systems to balance excess renewable energy and discharge as needed.

Localised grids for resilience and reduced central grid reliance.

Integrated generation, storage, and consumption hubs to boost efficiency and ease congestion.

Real-time consumption adjustments in factories based on electricity prices.

Incentivising consumers to shift energy use during peak times.

Automated heating/cooling responsive to grid demand and pricing.

Using vehicle-to-grid (V2G) technology to stabilise the grid.

Encouraging upgrades to efficient appliances and systems.

Strengthening links between regional grids for resilience.

Advanced insights into usage patterns to inform strategy.

Flexible pricing that encourages off-peak consumption.

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