High grid costs put the brakes on battery-powered innovation

While prices for large-scale batteries are plummeting worldwide, the rollout of battery farms in the Netherlands lags far behind that of neighboring countries, according to Trouw. This is not due to a lack of will, but to an unfavorable financial climate. Without swift action, the Netherlands will remain dependent on fossil fuel power plants for an unnecessarily long time.

The paradox of falling prices

The starting point is positive, however. Prices for large-scale batteries fell by as much as 45 percent in 2025 compared to the previous year. This decline is due to rapid technological developments and global economies of scale. Europe is taking full advantage of this and is rapidly building new storage capacity. In the Netherlands, however, the effect of this price drop remains virtually invisible. This is a major missed opportunity for our energy market. The cause lies in the high grid costs that operators in our country must pay. Unlike our neighboring countries, the Netherlands does not offer tax exemptions for energy storage. As a result, building and operating a battery park in the Netherlands is simply far too expensive. Investors are therefore turning to countries where the rules are more favorable. This directly delays the transition to a clean power grid. We now have the cheaper technology within reach, but we refuse to remove the financial barriers.

A stark contrast to neighboring countries

The figures reveal a stark contrast with the rest of Europe. By the end of 2025, Germany had already installed 2.8 gigawatts of large-scale batteries. The United Kingdom led the way with an impressive capacity of 7.4 gigawatts. The Netherlands lagged behind with less than 0.5 gigawatts of operational storage. This massive gap stems from the active support provided by neighboring countries. Germany, for example, is largely exempting batteries from grid tariffs until 2029. Belgium and the United Kingdom are also applying reduced tariffs to stimulate the market. As a result, we are seeing spectacular projects emerge abroad. A prime example of this is the transformation of a former German nuclear power plant into a massive battery park.

While our neighbors are embracing these kinds of innovations, the Dutch market remains bogged down in debates over grid tariffs. The lack of a level playing field directly disadvantages Dutch energy companies. Without intervention, the Netherlands will continue to lag behind the rest of the North Sea region.

The impact on the Dutch economy

Why is this lag so problematic for the Netherlands? The answer is simple: it keeps us dependent on fossil fuels for too long. In 2025, wind and solar energy produced more electricity than fossil fuel sources in the Netherlands for the first time. Yet our country still relies on gas for 46 percent of its electricity. On windless and cloudy days, gas and coal-fired power plants still have to step in to keep the grid stable. Large batteries can solve this problem by storing excess green electricity. Currently, we sometimes have to discard that electricity because the grid is overloaded. This costs society billions of euros due to grid congestion. Moreover, Dutch CO2 emissions per capita are still above the European average. Without large-scale storage, we simply cannot meet the climate targets for 2030. The economic damage caused by a faltering power grid is many times greater than the cost of a tax incentive for batteries.

Flex contracts are merely a band-aid solution

The Dutch government and grid operator Tennet are attempting to address these issues. Special schemes have been introduced, such as flex contracts for large battery farms. Companies receive a discount on their grid tariffs if they help keep the power grid in balance. A concrete example of this is the Giga Storage project in Delfzijl. However, these measures are not enough to turn the tide. Industry organization Energy Storage NL warns that these discounts are too limited in practice. They often apply to only a small part of the project. As a result, the business case for investors remains extremely uncertain and risky. Researchers from Delft University of Technology and the University of Twente confirm this view. They argue that policymakers have ignored the importance of storage for too long. Now that the power grid is becoming overloaded, panic is setting in. In this situation, flex contracts are merely a band-aid on a deep wound. A structural policy is needed.

The path forward to a stable power grid

A fundamental change is needed to get the Dutch battery market moving. First, policymakers must reconsider the grid tariffs for storage. Grid operators and the ACM recently reached an agreement on a new tariff methodology for the period 2027 to 2031. This offers an opportunity to set more favorable tariffs for batteries. In addition, we must look not only at megaprojects but also at local solutions. Home and neighborhood batteries can play a major role in relieving the local power grid. This requires discounts on the energy that neighbors share with one another. Tennet also advocates for European agreements to create a level playing field.

Harmonizing the rules prevents countries from outbidding each other with subsidies. However, the energy transition will not wait for slow European decision-making. The Netherlands must take action now to secure its energy autonomy. Only with a strong and clear incentive policy can we catch up with our neighboring countries.