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The Netherlands grid crisis exposes how rapid renewable energy growth is straining transmission capacity. Solar, wind, and electric vehicle demand are overloading networks, forcing officials to urge reduced peak-time power use and accelerate national grid modernization plans.

Main Points

The Netherlands grid crisis refers to national electricity congestion caused by surging renewable energy generation and rising consumer demand.

✅ Grid congestion from rapid solar and wind expansion

✅ Strained transmission and distribution capacity

✅ National investment in smart grid upgrades

The Dutch government is urging households to reduce electricity consumption between 16:00 and 21:00 — a signal that the country’s once-stable power grid is under serious stress. The call comes amid an accelerating shift to wind and solar power that is overwhelming transmission infrastructure and creating “grid congestion” across regions, as seen in Nordic grid constraints this year.

In a government television campaign, a narrator warns: “When everyone uses electricity at the same time, our power grid can become overloaded. That could lead to failures — so please try to use less electricity between 4 pm and 9 pm.” The plea reflects a system where supply occasionally outpaces the grid’s ability to distribute it, with some regions abroad issuing summer blackout warnings already.

According to Dutch energy firm Eneco’s CEO, Kys-Jan Lamo, the root of the problem lies in the mismatch between modern renewable generation and a grid built for centralized fossil fuel plants. He notes that 70% of Eneco’s output already comes from solar and wind, and this “grid congestion is like traffic on the power lines.” Lamo explains:

“The grid congestion is caused by too much demand in some areas of the network, or by too much supply being pushed into the grid beyond what the network can carry.”

He adds that many of the transmission lines in residential areas are narrow — a legacy of when fewer and larger power plants fed electricity through major feeder lines, underscoring grid vulnerabilities seen elsewhere today. Under the new model, renewable generation occurs everywhere: “This means that electricity is now fed into the grid even in peripheral areas with relatively fine lines — and those lines cannot always cope.”

Experts warn that resolving these issues will demand years of planning and immense investment in smarter grid infrastructure over the coming years. Damien Ernst, an electrical engineering professor at Liège University and respected voice on European grids, states that the Netherlands is experiencing a “grid crisis” brought on by “insufficient investment in distribution and transmission networks.” He emphasizes that the speed of renewable deployment has outpaced the grid’s capacity to absorb it.

Eneco operates a “virtual power plant” control system — described by Lamo as “the brain we run” — that dynamically balances supply and demand. During periods of oversupply, the system can curtail wind turbines or shut down solar panels. Conversely, during peak demand, the system can throttle back electricity provision to participating customers in exchange for lower tariffs. However, these techniques only mitigate strain — they cannot replace the need for physical upgrades or bolster resilience to extreme weather outages alone.

The bottleneck has begun limiting new connections: “Consumers often want to install heat pumps or charge electric vehicles, but they increasingly find it difficult to get the necessary network capacity,” Lamo warns. Businesses too are struggling. “Companies often want to expand operations, but cannot get additional capacity from grid operators. Even new housing developments are affected, since there’s insufficient infrastructure to connect whole communities.”

Currently, thousands of businesses are queuing for network access. TenneT, the national grid operator, estimates that 8,000 firms await initial connection approval, and another 12,000 seek to increase their capacity allocations. Stakeholders warn that unresolved congestion risks choking economic growth.

According to Kys-Jan Lamo: “Looking back, almost all of this could have been prevented.” He acknowledges that post-2015 climate commitments placed heavy emphasis on adding generation and on grid modernization costs more broadly, but “we somewhat underestimated the impact on grid capacity.”

In response, the government has introduced a national “Grid Congestion Action Plan,” aiming to accelerate approvals for infrastructure expansions and to refine regulations to promote smarter grid use. At the same time, feed-in incentives for solar power are being scaled back in some regions, and certain areas may even impose charges to integrate new solar systems into the grid.

The scale of what’s needed is vast. TenneT has proposed adding roughly 100,000 km of new power lines by 2050 and investing in doubling or tripling existing capacity in many areas. However, permit processes can take eight years before construction begins, and many projects require an additional two years to complete. As Lamo points out, “the pace of energy transition far exceeds the grid’s existing capacity — and every new connection request simply extends waiting lists.”

Unless grid expansion keeps up, and as climate pressures intensify, the very clean energy future the Netherlands is striving for may remain constrained by the physics of distribution.

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CAISO Renewable Curtailments reflect grid balancing under transmission congestion and oversupply, reducing solar and wind output while leveraging WEIM trading, battery storage, and transmission expansion to integrate renewables and stabilize demand-supply.

Key Points

CAISO renewable curtailments are reductions in wind and solar output to balance grid amid congestion or oversupply.

✅ Driven mainly by transmission congestion, less by oversupply.

✅ Peaks in spring when demand is low and solar output is high.

✅ Mitigated by WEIM trades, new lines, and battery storage growth.

The California Independent System Operator (CAISO), the grid operator for most of the state, is increasingly curtailing solar- and wind-powered electricity generation, as reported in rising curtailments, as it balances supply and demand during the rapid growth of wind and solar power in California.

Grid operators must balance supply and demand to maintain a stable electric system as advances in solar and wind continue to scale. The output of wind and solar generators are reduced either through price signals or rarely, through an order to reduce output, during periods of:

Congestion, when power lines don’t have enough capacity to deliver available energy
Oversupply, when generation exceeds customer electricity demand

In CAISO, curtailment is largely a result of congestion. Congestion-related curtailments have increased significantly since 2019 because California's solar boom has been outpacing upgrades in transmission capacity.

In 2022, CAISO curtailed 2.4 million megawatthours (MWh) of utility-scale wind and solar output, a 63% increase from the amount of electricity curtailed in 2021. As of September, CAISO has curtailed more than 2.3 million MWh of wind and solar output so far this year, even as the US project pipeline is dominated by wind, solar, and batteries.

Solar accounts for almost all of the energy curtailed in CAISO—95% in 2022 and 94% in the first seven months of 2023. CAISO tends to curtail the most solar in the spring when electricity demand is relatively low (because moderate spring temperatures mean less demand for space heating or air conditioning) and solar output is relatively high, although wildfire smoke impacts can reduce available generation during fire season as well.

CAISO has increasingly curtailed renewable generation as renewable capacity has grown in California, and the state has even experienced a near-100% renewables moment on the grid in recent years. In 2014, a combined 9.0 gigawatts (GW) of wind and solar capacity had been built in California. As of July 2023, that number had grown to 17.6 GW. Developers plan to add another 3.0 GW by the end of 2024.

CAISO is exploring and implementing various solutions to its increasing curtailment of renewables, including:

The Western Energy Imbalance Market (WEIM) is a real-time market that allows participants outside of CAISO to buy and sell energy to balance demand and supply. In 2022, more than 10% of total possible curtailments were avoided by trading within the WEIM. A day ahead market is expected to be operational in Spring 2025.

CAISO is expanding transmission capacity to reduce congestion. CAISO’s 2022–23 Transmission Planning Process includes 45 transmission projects to accommodate load growth and a larger share of generation from renewable energy sources.

CAISO is promoting the development of flexible resources that can quickly respond to sudden increases and decreases in demand such as battery storage technologies that are rapidly becoming more affordable. California has 4.9 GW of battery storage, and developers plan to add another 7.6 GW by the end of 2024, according to our survey of recent and planned capacity changes. Renewable generators can charge these batteries with electricity that would otherwise have been curtailed.

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DOE Battery Workforce Strategy advances lithium battery manufacturing with DOE, DOL, and AFL-CIO partnerships, pilot training programs, EV supply chain skills, and industry-labor credentials to strengthen clean energy jobs and domestic competitiveness.

Key Points

An initiative to fund pilot training and labor-industry partnerships to scale domestic lithium battery manufacturing.

✅ $5M for up to five pilot training programs.

✅ Builds industry-labor credentials across the battery supply chain.

✅ Targets EV manufacturing, recycling, and materials refining.

The U.S. Department of Energy (DOE), in coordination with the U.S. Department of Labor and the AFL-CIO, today announced the launch of a national workforce development strategy for lithium-battery manufacturing. As part of a $5 million investment, DOE will support up to five pilot training programs in energy and automotive communities and advance workforce partnerships between industry and labor for the domestic lithium battery supply chain. Lithium batteries power everything from electric vehicles, where U.S. automakers' battery strategies are rapidly evolving, to consumer electronics and are a critical component of President Biden’s whole-of-government decarbonization strategy. This workforce initiative will support the nation’s global competitiveness within battery manufacturing while strengthening the domestic economy and clean energy supply chains. 

“American leadership in the global battery supply chain, as the U.S. works with allies on EV metals to strengthen access, will be based not only on our innovative edge, but also on our skilled workforce of engineers, designers, scientists, and production workers,” said U.S. Secretary of Energy Jennifer M. Granholm, “President Biden has a vision for achieving net zero emissions while creating millions of good paying, union jobs — and DOE’s battery partnerships with labor and industry are key to making that vision a reality.” 

“President Biden has made the creation of good union jobs a cornerstone of his climate strategy,” said AFL-CIO President Liz Shuler. “We applaud DOE for being proactive in pulling labor and management together as the domestic battery industry is being established, and as Canada accelerates EV assembly nearby, we look forward to working with DOE and DOL to develop high-road training standards for the entire battery supply chain.” 

“I am glad to see the Department of Energy collaborating with our industry partners to invest in the next generation of our clean energy workforce,” said U.S. Senator Joe Manchin (D-WV), Chairman of the Senate Energy and Natural Resources Committee. “While I remain concerned about our dependence on China and other foreign countries for key parts of the lithium-ion battery supply chain, and recent lithium supply risks highlight the urgency, engaging our strong and capable workforce to manufacture batteries domestically is a critical step toward reducing our reliance on other countries and ensuring we are able to maintain our energy security. I look forward to seeing this initiative grow, and we will continue to work closely together to ensure we can onshore the rest of the battery supply chain.” 

The pilot training programs will bring together manufacturing companies, organized labor, and training providers to lay the foundation for the development of a broad national workforce strategy. The pilots will support industry-labor cooperation, as major North American projects like the B.C. battery plant advance, and will provide sites for job task analyses and documenting worker competencies. Insights gained will support the development of national industry-recognized credentials and inform the development of broader training programs to support the overall battery supply chain. 

This initiative comes as part of suite of announcements from President Biden’s Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization—a partnership among the White House and nearly a dozen federal agencies committed to pursuing near- and long-term actions to support coal, oil and gas, and power plant communities as the nation transitions to a clean energy economy. 

This announcement follows DOE’s recent release of two Notices of Intent authorized by the Bipartisan Infrastructure Law to provide $3 billion to support projects that bolster domestic battery manufacturing and battery recycling for a circular economy efforts nationwide. The funding, which will be made available in the coming months, will support battery-materials refining, which will bolster domestic refining capacity of minerals such as lithium, as well as production plants, battery cell and pack manufacturing facilities, and recycling facilities. 

It also builds on progress the Biden-Harris Administration and DOE have driven to secure a sustainable, reliable domestic supply of critical minerals and materials necessary for clean energy supply chains, including lithium, with emerging sources like Alberta's lithium-rich oil fields underscoring regional potential. This includes $44 million in funding through the DOE Mining Innovations for Negative Emissions Resource Recovery (MINER) program to fund the technology research that increases the mineral yield while decreasing the required energy, and subsequent emissions, to mine and extract critical minerals such as lithium, copper, nickel, and cobalt. 

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Global Renewable Capacity Additions 2023 surge on policy momentum, high fossil prices, and energy security, with solar PV and wind leading growth as grids expand and manufacturing scales across China, Europe, India, and the US.

Key Points

Record solar PV and wind growth from policy and energy security, adding 440+ GW toward 4,500 GW total capacity in 2024.

✅ Solar PV to supply two-thirds of additions; rooftop demand rising.

✅ Wind rebounds ~70% as delayed projects complete in China, EU, US.

✅ Grid upgrades and better permitting, auctions key for 2024 growth.

Global additions of renewable power capacity are expected to jump by a third this year as growing policy momentum, higher fossil fuel prices and energy security concerns drive strong deployment of solar PV and wind power, building on a record year for renewables in 2016, according to the latest update from the International Energy Agency.

The growth is set to continue next year with the world’s total renewable electricity capacity rising to 4 500 gigawatts (GW), equal to the total power output of China and the United States combined, and in the United States wind power has surged in the electricity mix, says the IEA’s new Renewable Energy Market Update, which was published today.

Global renewable capacity additions are set to soar by 107 gigawatts (GW), the largest absolute increase ever, to more than 440 GW in 2023. The dynamic expansion is taking place across the world’s major markets. Renewables are at the forefront of Europe’s response to the energy crisis, accelerating their growth there. New policy measures are also helping drive significant increases in the United States, where solar and wind growth remains strong, and India over the next two years. China, meanwhile, is consolidating its leading position and is set to account for almost 55% of global additions of renewable power capacity in both 2023 and 2024.

“Solar and wind are leading the rapid expansion of the new global energy economy. This year, the world is set to add a record-breaking amount of renewables to electricity systems – more than the total power capacity of Germany and Spain combined,” said IEA Executive Director Fatih Birol. “The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable – and governments are responding with efforts to deploy them faster. But achieving stronger growth means addressing some key challenges. Policies need to adapt to changing market conditions, and we need to upgrade and expand power grids to ensure we can take full advantage of solar and wind’s huge potential.”

Solar PV additions will account for two-thirds of this year’s increase in renewable power capacity and are expected to keep growing in 2024, according to the new report. The expansion of large-scale solar PV plants is being accompanied by the growth of smaller systems. Higher electricity prices are stimulating faster growth of rooftop solar PV, which is empowering consumers to slash their energy bills, and in the United States renewables' share is projected to approach one-fourth of electricity generation.

At the same time, manufacturing capacity for all solar PV production segments is expected to more than double to 1 000 GW by 2024, led by China's solar PV growth and increasing supply diversification in the United States, where wind, solar and battery projects dominate the 2023 pipeline, India and Europe. Based on those trends, the world will have enough solar PV manufacturing capacity in 2030 to comfortably meet the level of annual demand envisaged in the IEA’s Net Zero Emissions by 2050 Scenario.

Wind power additions are forecast to rebound sharply in 2023 growing by almost 70% year-on-year after a difficult couple of years in which growth was slugging, even as wind power still grew despite Covid-19 challenges. The faster growth is mainly due to the completion of projects that had been delayed by Covid-19 restrictions in China and by supply chain issues in Europe and the United States. However, further growth in 2024 will depend on whether governments can provide greater policy support to address challenges in terms of permitting and auction design. In contrast to solar PV, wind turbine supply chains are not growing fast enough to match accelerating demand over the medium-term. This is mainly due to rising commodity prices and supply chain challenges, which are reducing the profitability of manufacturers.

The forecast for renewable capacity additions in Europe has been revised upwards by 40% from before Russia’s invasion of Ukraine, which led many countries to boost solar and wind uptake to reduce their reliance on Russian natural gas. The growth is driven by high electricity prices that have made small-scale rooftop solar PV systems more financially attractive and by increased policy support in key European markets, especially in Germany, Italy and the Netherlands.

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France EV Incentive Rules prioritize EU-made electric vehicles, tying subsidies to manufacturing emissions and carbon footprint, making Stellantis, Renault, and Tesla Model Y eligible while excluding many China-built models under a new eligibility list.

Key Points

Links EV subsidies to manufacturing emissions, favoring EU-made models and restricting many China-built cars.

✅ Subsidies tied to lifecycle manufacturing emissions.

✅ EU production favored; many China-built EVs excluded.

✅ Eligible: Stellantis, Renault, Tesla Model Y; not Model 3.

France's revamped new EV rules on consumer cash incentives for electric car purchases favour vehicles made in France and Europe over models manufactured in China, a government list of eligible car types published recently has showed.

Some 65% of electric cars sold in France will be eligible for the scheme, which from Friday will include new criteria covering the amount of carbon emitted in the manufacturing of an electric vehicle (EV).

The list of eligible models includes 24 produced by Franco-Italian group Stellantis (STLAM.MI) and five by French carmaker Renault (RENA.PA). Elon Musk's Tesla (TSLA.O) Model Y will be eligible but not its Model 3.

Electric vehicle brand MG Motors, owned by China's SAIC, said it expects the new rules to weigh on the French EV market, despite the global surge in EV sales seen in recent years.

"There are cars that will entirely lose their competitiveness", an MG spokesperson told Reuters, adding that the brand had decided not to apply for the bonus scheme for its MG4 model because it was "designed to exclude us".

French Finance Minister Bruno Le Maire hailed what he called the new rules' incentive for automakers to reduce their carbon footprint.

"We will no longer be subsidising car production that emits too much CO2," he said in a statement.

President Emmanuel Macron's government has wanted to make French and European-made EVs more affordable for domestic consumers relative to cheaper vehicles produced in China, amid a record EV market share in the country.

The average retail price of an EV in Europe, even as the EU EV share grew during lockdown months, was more than 65,000 euros ($71,000) in the first half of 2023, compared with just over 31,000 euros in China, according to research by Jato Dynamics.

The French government already offered buyers a cash incentive of between 5,000 and 7,000 euros to get more electric cars on the road, at a total cost of 1 billion euros ($1.1 billion) per year.

However, in the absence of cheap European-made EVs, a third of all incentives are going to consumers buying EVs made in China, French finance ministry officials say. The trend has helped spur a surge in imports and a growing competitive gap with domestic producers.

China's auto industry relies heavily on coal-generated electricity, meaning many Chinese-made EVs will henceforth not qualify.

The Ademe agency overseeing the process studied the eligibility of almost 500 EV models and their variants to include in the scheme.

Dacia, the low-cost Renault brand, saw its Spring model imported from China excluded from the list.

Tesla's Model 3 is made in China. The Model Y, which is larger and more expensive, is made mainly in Berlin and was the top selling EV in France over the first 11 months of the year, amid forecasts that EVs could dominate within a decade in many markets.

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USDA Rural Clean Energy Programs drive climate-smart infrastructure, energy efficiency, and smart grid upgrades, delivering REAP grants, renewable power, and cost savings that boost rural development, create jobs, and modernize electric systems nationwide.

Key Points

USDA programs funding renewable upgrades, efficiency projects, and grid resilience to cut costs and spur rural growth.

✅ REAP grants fund renewable and efficiency upgrades

✅ Smart grid loans strengthen rural electric resilience

✅ Projects cut energy costs and support good-paying jobs

When rural communities lean into clean energy, the path to economic prosperity is clear. Cleaner power options like solar and electric guided by decarbonization goals provide new market opportunities for producers and small businesses. They reduce energy costs for consumers and supports good-paying jobs in rural America.

USDA Rural Development programs have demonstrated strong success in the fight against climate change, as recent USDA grants for energy upgrades show while helping to lower energy costs and increase efficiency for people across the nation.

This week, as we celebrate Earth Day, we are proud to highlight some of the many ways USDA programs advance climate-smart infrastructure, including the first Clean Energy Community designation that showcases local leadership, to support economic development in rural areas.

Advancing Energy Efficiency in Rural Massachusetts

Prior to receiving a Rural Energy for America Program (REAP) grant from USDA, Little Leaf Farms in the town of Devens used a portable, air-cooled chiller to cool its greenhouses. The inefficient cooling system, lighting and heating accounted for roughly 20 percent of the farm's production costs.

USDA Rural Development awarded the farm a $38,471 REAP grant to purchase and install a more efficient air-cooled chiller. This project is expected to save Little Leaf Farms $51,341 per year and will replace 798,472 kilowatt-hours per year, which is enough energy to power 73 homes.

To learn more about this project, visit the success story: Little Leaf Farms Grows Green while Going Green | Rural Development (usda.gov).

In the Fight Against Climate Change, Students in New Hampshire Lead the Way

Students at White Mountains Regional High School designed a modern LED lighting retrofit informed by building upgrade initiatives to offset power costs and generate efficient energy for their school.

USDA Rural Development provided the school a $36,900 Economic Impact Initiative Grant under the Community Facilities Program to finance the project. Energy upgrades are projected to save 92,528 kilowatt-hours and $12,954 each year, and after maintenance reduction is factored in, total savings are estimated to be more than $20,000 annually.

As part of the project, the school is incorporating STEM (Science, Technology, Math and Engineering) into the curriculum to create long-term impacts for the students and community. Students will learn about the lighting retrofit, electricity, energy efficiency and wind energy as well as climate change.

Clean Energy Modernizes Power Grid in Rural Pennsylvania

USDA Rural Development is working to make rural electric infrastructure stronger, more sustainable and more resilient than ever before, and large-scale energy projects in New York reinforce this momentum nationwide as well. For instance, Central Electric Cooperative used a $20 million Electric Infrastructure Loan Program to build and improve 111 miles of line and connect 795 people.

The loan includes $115,153 in smart grid technologies to help utilities better manage the power grid, while grid modernization in Canada underscores North America's broader transition to cleaner, more resilient systems. Central Electric serves about 25,000 customers over 3,049 miles of line in seven counties in western Pennsylvania.

Agricultural Producers Upgrade to Clean Energy in New Jersey

Tuckahoe Turf Farms Inc. in Hammonton used a REAP grant to purchase and install a 150HP electric irrigation motor to replace a diesel motor. The project will generate 18.501 kilowatt-hours of energy.

In Asbury, North Jersey RCandD Inc. used a REAP grant to conduct energy assessments and provide technical assistance to small businesses and agricultural producers in collaboration with EnSave.

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