Consultation on the Energy System White Paper: The Cabinet Anticipates Significant Growth in Energy Storage Through 2040

Energy storage was given prominent attention during the Energy System policy consultation on October 26 and in the two letters to the House of Representatives that Minister Stientje van Veldhoven-van der Meer sent prior to the consultation. The letters concern the update to the National Energy System Plan (NPE) 2026: in them, the Cabinet explains the assumptions and methodology and answers more than one hundred parliamentary questions.

The update reaffirms the previously established course toward a highly electrified energy system, with more domestically produced energy and less dependence on imports. This requires not only additional renewable electricity generation but also sufficient flexibility to balance supply and demand. The government explicitly identifies energy storage, demand response, interconnection, and controllable capacity as essential building blocks.

Battery storage is being given a specific role in the NPE

This role of storage is also given concrete form in the NPE. For the first time, the government is setting a target for battery storage in 2040: 110 GWh of storage capacity, corresponding to approximately 28 GW of battery power with an average storage duration of four hours.

Members of Parliament asked what the feasibility of this scale is based on. According to the government, the target figure was calculated based on the NPE projections and then reviewed by various experts in the sector. This showed that the scale is “ambitious but not unrealistic.” The underlying calculation assumes an electricity demand of approximately 220 TWh in 2040, with about 80% of solar and wind energy in the electricity mix. Based on literature regarding cost-effective system design, the government assumes a storage requirement of approximately 0.05% of annual electricity consumption. This amounts to approximately 110 GWh. Since, according to the literature cited, batteries with a four-hour storage duration are cost-effective in such a system, this results in a target value of approximately 28 GW of battery capacity.

Energy Storage NL welcomes this concrete target, but emphasizes that a broader perspective on energy storage is needed. Battery storage with a four-hour storage duration alone is not sufficient: long-term storage, including thermal and molecular storage, is also necessary. The target for battery storage is therefore an important first step toward a broader approach to energy storage.

Storage Offers Solutions for Grid Congestion

In addition to this national guideline, the letters to Parliament describe what storage can already mean for companies facing grid congestion. According to the government, companies that wish to electrify can, in some cases, take steps within their existing connection. Batteries are explicitly mentioned as a means of achieving flexibility behind the meter. Energy hubs and flexible transmission contracts can also offer additional opportunities.

Reduced need for fossil-fuel-based dispatchable capacity

Storage also affects the amount of controllable capacity that the future energy system will need. In its letters to Parliament, the government estimates a need of approximately 10 to 25 GW by 2040. The final figure depends heavily on developments in storage, demand response, and interconnection. Further scaling up of storage capacity could help limit this need.

From Ambitions to Concrete Implementation

How these ambitions will be translated into concrete measures was discussed during the policy memorandum consultation on October 26. The minister pledged to inform the House before the 2027 spring budget package about the coherence between the implementation agendas and to clarify what additional policies are still needed. In this context, she mentioned, among other things, setting targets for flexibility and the energy storage policy agenda. This agenda was developed in collaboration with ESNL and Netbeheer Nederland and will be published shortly. It will outline not only the structure of the future energy system but also the specific actions needed to bring it to fruition.

One specific area of application discussed during the consultation was reducing the grid load from data centers. Topics covered included battery storage, on-site energy generation, and shifting electricity consumption to off-peak hours. The State Secretary announced that these options would be incorporated into the integrated approach for data centers. Flexible grid use is the guiding principle here, insofar as it is compatible with resilience and safety.

Significant Recognition for the Storage Sector

The letters to Parliament and the policy consultation thus demonstrate that energy storage is becoming an increasingly prominent part of national system planning. Whereas storage was often viewed primarily as a supporting technology in earlier energy scenarios, battery storage is now being assigned a concrete target and a structural role leading up to 2040. The government cites storage as essential for electrification, alleviating grid congestion, ensuring security of supply, and integrating large amounts of solar and wind energy. This represents significant recognition for the storage sector. The announced next steps should clarify what additional policies are needed to fulfill this role in practice.