How hydrogen helps to ease grid congestion
The Dutch electricity grid is under considerable pressure. The increase in solar and wind energy is not only leading to higher demand for grid capacity, but also to peaks and troughs that do not always correspond to actual usage. In addition, sustainable electricity is often generated in areas where the electricity grid has not yet been adequately reinforced to transport this energy. This makes it increasingly complex to balance supply and demand, resulting in project delays and stalled sustainability efforts.
Full electrification is still seen as the best route to achieving the goals set out in the Paris Agreement. However, experience shows that the current grid capacity cannot cope with this and that additional solutions are needed. One such solution is an energy system in which electrons and flexible energy carriers, such as hydrogen, reinforce each other. Gasunie is playing an active role in this and is working with partners to build a robust hydrogen network that will relieve and strengthen the electricity grid.
Grid congestion demands structural solutions
Demand for electricity continues to increase rapidly, partly due to growth in industry and the establishment of data centres. According to the 2025 Scenario Report, electricity consumption will increase by a factor of 2.5 to 3.5 by 2050. This means that the current electricity grid will be increasingly overloaded, leading to grid congestion in various locations. The Ministry of Economic Affairs and Climate Policy warns that grid congestion will hamper economic growth, bring processes to a standstill and delay projects.
Grid operators are working hard to alleviate this pressure on the grid, for example by making agreements with large consumers and finding clever ways to better utilise existing capacity. However, such measures are temporary and do not provide a structural solution to the bottlenecks. That is why it is necessary to achieve optimal interaction between electricity, sustainable gases and heat. Infrastructure for hydrogen, CO2, green gas and heat can partially absorb the demand for energy, so the electricity grid is not overloaded now or in the future, according to Netbeheer Nederland.
Hydrogen: from surplus to value
A major challenge in the energy transition is the mismatch between where and when renewable energy is generated and where it is in demand. This increasingly leads to surpluses of solar and wind energy. In such cases, solar and wind farms must be shut down and valuable electricity is lost (curtailment). Hydrogen can compensate for this: converting surplus electricity into hydrogen allows energy to be stored and used later, for example when energy prices are negative or when the grid is overloaded.
Converting electricity into hydrogen makes it possible to store energy for use weeks or even seasons later. Despite conversion losses, more value is retained. Hydrogen is often a viable alternative for industries with limited electrical infrastructure. It can also be mixed with natural gas up to approximately 30 percent without the need to make major changes to facilities. This eases the transition to a cleaner system and helps to meet sustainability criteria.
Benefits that outweigh the price
The price of the transition to hydrogen is a well-known focus of public debate. As supply grows and technology matures, costs will fall. The price of green hydrogen is not expected to come close to that of natural gas with CO2 capture (blue) or without CO2 capture (grey), but given the need for flexibility and storage, price is not the only criterion.
Offshore production plays a strategic role here: offshore wind farms convert electricity directly into green hydrogen that is transported to land via pipelines. This allows the Netherlands to make the best use of offshore wind energy without additional grid reinforcement and to take full advantage of its strategic location by the sea. At the same time, Gasunie believes that temporary solutions, such as blue hydrogen, have a role to play in the transition phase.
Integrated infrastructure planning
Gasunie is in favour of integrated infrastructure planning in which electricity, methane and hydrogen complement each other. This keeps social costs low and gives companies timely clarity about their strategy. This vision is in line with national programmes such as the Integrated Infrastructure Outlook for 2030-2050, the Main Energy Structure Programme and the 2024 Climate and Energy Outlook. The National Plan for the Energy System (NPE) also emphasises that policy and infrastructure must remain adaptable so the energy system can respond to changes in demand, technology and grid capacity. A reassessment will take place in 2026 to determine whether the mix of technologies still fits the current situation.
Regional opportunities and phased roll-out
Each region has different opportunities and energy needs. While Utrecht is focusing primarily on electrification, provinces such as Friesland and Overijssel are consciously opting for a mix of electricity and molecules. It is precisely these differences that offer opportunities to make clever use of temporary surpluses, for example by using electrolysis at locations with high levels of sustainable generation. This requires a strategic view of the relationship between energy sources, to strike a better balance between decentralised generation and local consumption.
Since it is impossible to connect all regions at the same time, Gasunie has adopted a phased approach. First, companies in the industrial clusters will be given the opportunity to connect to the national hydrogen network; then locations in more distant areas will be added (cluster 6).
Electrons and molecules in balance
Gasunie is working on an energy system in which electrons and molecules reinforce each other. By cleverly reusing existing methane infrastructure and establishing new connections, projects can be carried out more quickly and at lower social costs. This approach prevents waste, increases supply security and supports the continuity and sustainability of industrial processes.
Gasunie invites partners from the energy sector, government and industry to work together to achieve a future-proof energy system in which electrons and molecules complement each other in the best possible way.
Frequently asked questions
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The rapid growth of solar and wind energy is causing peaks and troughs in the electricity supply. This is leading to increasingly frequent grid congestion, in which the electricity grid is unable to transport the electricity. Large amounts of electricity are required to produce hydrogen through electrolysis. Placing electrolysers in strategic locations where there is a lot of renewable energy generation relieves the burden on the electricity grid. The hydrogen produced serves as a flexible energy carrier and can later be converted into electricity. This ensures that no valuable energy is lost.
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Grid congestion occurs when the electricity grid does not have enough capacity to accommodate peaks in supply or demand. Such congestion can be temporary or long term. If there is long-term grid congestion, this can lead to projects being delayed, data centres and businesses not getting new connections, and sustainable energy generation being scaled back. The Ministry of Economic Affairs and Climate Policy warns that this could slow down economic growth and the energy transition.
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When there is a lot of sun or wind, excess electricity can be converted into hydrogen. This hydrogen can be stored and used days, weeks, or even seasons later, for example as fuel for industries or power stations. Despite some conversion losses, more value is retained than if the energy were simply lost.
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For industries with limited electrical infrastructure, hydrogen can be a viable alternative for making processes more sustainable in the short term. It can also be mixed with natural gas up to approximately 30 percent without the need to make major changes to existing facilities. This makes the transition to a cleaner system easier and more affordable.
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Offshore wind farms can convert electricity directly into hydrogen, which is then transported to land via pipelines. This avoids the need to transport all this electricity via the existing grid, thereby limiting grid congestion and unnecessary grid reinforcement. It also reduces infrastructure costs and seeks to minimise social costs. In this way, the Netherlands makes the most of its strategic location by the sea and its wind capacity.
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Green hydrogen is more expensive than natural gas, but its value lies in its flexibility in a variable renewable energy generation pattern, the ability to store renewable electricity and the prevention of curtailment (the shutdown of wind or solar farms). This helps provide a high level of supply security ( availability of energy when there is demand), affordability (preventing curtailment and balancing the energy system), and reliability (preventing parts of the energy system from failing). System integration (offshore/onshore) also reduces the need for expensive grid reinforcement and keeps social costs low.
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Gasunie is working on a robust, nationwide hydrogen network and is in favour of integrated infrastructure planning in which electricity, methane and hydrogen complement each other. Existing gas pipelines will be reused wherever possible. This approach is in line with national plans such as the National Plan for the Energy System (NPE) and the Integrated Infrastructure Outlook for 2030-2050. In other words, Gasunie is developing an infrastructure for today and tomorrow.