Urgent letter from a broad coalition: ‘A spot on the power grid waiting list should not be for sale’

Companies and organizations waiting to be connected to the power grid often have to pay tens of thousands to millions of euros in advance, without any certainty regarding the waiting period. A broad coalition of industry and advocacy groups has therefore issued an urgent letter calling on the Netherlands Authority for Consumers and Markets (ACM) to intervene. According to the organizations, access to the limited electricity grid is increasingly at risk of becoming dependent on financial clout rather than the feasibility of projects.

The urgent letter is an initiative of a broad coalition of organizations from the business community, the energy sector, and industry. The letter was signed by Holland Solar, NedZero, Energy Storage NL, Energie Samen, the Royal Association of the Dutch Chemical Industry (VNCI), Transport and Logistics Netherlands (TLN), the Federation of the Dutch Food Industry (FNLI), the Association of Dutch Glass Manufacturers (VNG), the Dutch Rubber and Plastics Industry (NRK), the Association of Dutch Paper and Cardboard Manufacturers (VNP), and the Royal Dutch Building Ceramics Association (KNB).

Regional grid operators are now requiring a deposit of 20 percent of the connection costs to secure a spot on the waiting list. TenneT has announced that it will charge 10 percent. Depending on the required capacity and connection, these amounts can range from a few hundred thousand to millions of euros.

Large sums, no certainty

The problem for organizations seeking a connection is that they must commit large sums of money for potentially many years. In return, they receive no assurance regarding their position on the waiting list or the exact time when transport capacity will actually become available. The down payments are intended to ensure that only serious projects secure a spot on the waiting list. However, the authors of the letter doubt whether the measure achieves that goal. Smaller companies, energy cooperatives, and innovative developers, in particular, are increasingly unable to finance the down payment and are deciding not to apply at all. As a result, access to the electricity grid risks becoming a matter not of necessity, but of financial capacity. Consequently, this creates a distorted picture of the actual need for transmission capacity. According to the urgent letter, more than 14,000 companies are currently waiting for transmission capacity, and nearly 9,000 power generators are also facing long waiting lists.

Test the plans, not the wallet

The coalition therefore wants the ACM to work with the sectors, network operators, and the Ministry of Economic Affairs and Climate Policy to explore alternatives. One key proposal is a “maturity test,” in which the actual feasibility of a project—rather than financial capacity—determines whether an application is taken seriously. In addition, the coalition advocates for phased down payments, clear limits on how much can be requested in advance, and greater transparency regarding wait times, connection fees, and one’s position on the waiting list. The organizations are calling on the ACM to quickly begin discussions with the relevant parties.

Read the urgent letter