Business
Netherland’s renewables drive putting pressure on its power grid
John LaurensonBusiness reporter, Rotterdam
AFP via Getty ImagesIn a Dutch government TV campaign called “Flip the Switch” an actress warns viewers about their electricity usage.
“When we all use electricity at the same time, our power grid gets overloaded,” she says. “This can cause malfunctions. So, use as little electricity as possible between four and nine.”
It is the sign that, in one of the most-advanced economies in the world, something has gone wrong with the country’s power supply.
The Netherlands has been an enthusiastic adopter of electric cars. It has the highest number of charging points per capita in Europe.
As for electricity production, the Netherlands has replaced gas from its large North Sea reserves with wind and solar.
So much so that it leads the way in Europe for the number of solar panels per person. In fact, more than one third of Dutch homes have solar panels fitted.
The country is also aiming for offshore wind farms to be its biggest source of energy by 2030.
This is all good in environmental terms, but it’s putting the Dutch national electricity grid under enormous stress, and in recent years there have been a number of power cuts.
The problem is “grid congestion”, says Kees-Jan Rameau, chief executive of Dutch energy producer and supplier Eneco, 70% of whose electricity generation is now solar and wind.
“Grid congestion is like a traffic jam on the power grid. It’s caused by either too much power demand in a certain area, or too much power supply put onto the grid, more than the grid can handle.”
He explains that the problem is that the grid “was designed in the days when we had just a few very large, mainly gas-fired power plants”.
“So we built a grid with very big power lines close to those power plants, and increasingly smaller power lines as you got more towards the households.
“Nowadays we’re switching to renewables, and that means there’s a lot of power being injected into the grid in the outskirts of the network where there are only relatively small power lines.”
And these small power lines are struggling to cope with all the electricity coming in from wind turbines and solar panels scattered around the country.
AFP via Getty ImagesDamien Ernst, professor of electrical engineering at Belgium’s Liege University, is one of Europe’s leading experts on electricity grids. He says it is an expensive problem for the Netherlands to solve.
“They have a grid crisis because they haven’t invested enough in their distribution networks, in their transmission networks, so they are facing bottlenecks everywhere, and it will take years and billions of dollars to solve this.”
Prof Ernst adds that it is a Europe-wide issue. “We have an enormous amount of solar panels being installed, and they are installed at a rate that is much, much too high for the grid to be able to accommodate.”
At Eneco’s headquarters in Rotterdam, Mr Kees-Jan Rameau highlights a large control panel that the company calls its “virtual power plant” and “the brain of our operations”. It is used to help balance the grid, avoiding blackouts.
When electricity generation is too high across the Netherlands, it enables Eneco to turn wind turbines out of the wind and turn off solar panels.
As for when demand for electricity is too high, it lowers the power to customers who have accepted to allow Eneco to stop or reduce their electricity supply when the network is under strain in exchange for lower prices.
But for homes and companies who want to scale-up their use of electricity with a new or larger grid connection, that, increasingly, is just not possible.
“Often consumers want to install a heat pump, or charge their electric vehicle at home, but that requires a much bigger power connection, and increasingly they just cannot get it,” says Mr Kees-Jan Rameau.
He adds that it is worse for businesses. “Often they want to expand their operations, and they just cannot get extra capacity from the grid operators.
And it has got to the point where even new housing construction in the Netherlands is becoming increasingly difficult, because there’s just no capacity to connect those new neighbourhoods to the grid.”
Those people, and companies, end up on waiting lists for a number of years. At the same time there are also waiting lists for those who want to supply the grid with power, such as a new home fitted with solar panels on its roof.
Tennet, the government-owned agency that runs the Netherlands’ national grid, says that 8,000 companies are currently waiting to be able to feed in electricity, while 12,000 others are waiting for permission to use more power.
Some sectors of the Dutch economy are warning that it is hampering their growth. “Grid congestion is putting the future of the Dutch chemical industry at risk… while in other countries it will be easier to invest,” says the President of the Dutch Chemical Association Nienke Homan.
So, was all this avoidable? “In hindsight I think almost every problem is avoidable,” says Mr Kees-Jan Rameau.
He adds that following the 2015 Paris Agreement on trying to tackle climate change, “we were very much focussing on increasing the renewable power generation side. But we kind of underestimated the impact it would have on the power grid.”
Tennet is now planning to spend €200bn ($235bn; £174bn) on reinforcing the grid, including laying some 100,000km (62,000 miles) of new cables between now and 2050.
That’s a huge amount of money, but there is also a big cost to not spending it. Grid congestion is costing the Dutch economy up to €35bn a year, according to a 2024 report from management consultancy group Boston Consulting Group.
Eugene Beijings, who is in charge of grid congestion with Tennet, says that patience is sadly required. “To strengthen and reinforce the grid, we need to double, triple, sometimes increase tenfold the capacity of the existing grid.
“And it’s taking on average about 10 years to do a project like that before it goes live, of which the first eight are legislation and getting the rights to put cables in the ground with all property owners. And only the last two years are the construction period.
“And meanwhile the energy transition is going that fast that we cannot cope with it, with the existing grid. So every additional request [to connect] is adding to the waiting list.”
Zet ook de knop omAt the Dutch energy ministry, which is actually called the Ministry for Climate Policy and Green Growth, the Minister Sophie Hermans wasn’t available for an interview. But her office gave a statement:
“In hindsight, the speed at which our electricity consumption has grown might have been collectively underestimated in the past by all parties involved. It is also hard to predict where the growth will occur first, as this results from individual companies/sectors and households.”
As for solutions, the ministry says it has a “National Grid Congestion Action Plan” focussed on adjusting legislation so grid expansion permits can be granted more quickly.
It is encouraging people to make better use of the existing grid with, for example, its Flip the Switch campaign.
And the financial incentive for people who feed their surplus solar electricity into the grid is being reduced to almost nothing. In some cases, people will even have to pay to feed solar power into the grid.
Business
50% US tariffs: Indian refiners look to cut back on Russian crude imports; Trump claims India to stop buying oil from Moscow – The Times of India
India is looking to reduce its Russian oil imports with refiners planning a gradual reduction, according to a Reuters report quoting sources. Russia continues to be India’s largest crude oil supplier. The Donald Trump administration has imposed 50% tariffs on India, 25% of which are for the latter’s crude oil procurement from Russia.On Wednesday, US President Donald Trump claimed that Prime Minister Narendra Modi had given assurance that India would discontinue purchasing oil from Russia.“So I was not happy that India was buying oil, and he (Modi) assured me today that they will not be buying oil from Russia,” Trump informed reporters at a White House gathering on Wednesday.Sources told Reuters that Indian refiners have not received any official directive from the government regarding stopping Russian oil imports.The sources quoted in the report indicated that an immediate halt to Russian oil purchases would be problematic, as transitioning to alternative crude sources would result in increased global oil prices and potentially trigger inflation concerns.During April to September, India’s Russian crude imports averaged 1.75 million barrels per day, representing approximately 36% of total oil imports, down from 40% in the corresponding period last year, according to government statistics.Imports of US crude increased by 6.8% year-on-year to roughly 213,000 bpd, constituting 4.3% of total imports.For the six-month period ending September 2025, Middle Eastern oil’s proportion increased to 45% from 42%, as revealed by the data.Following Trump’s claim, India issued a statement on Thursday emphasising its two primary objectives: maintaining stable energy prices and ensuring supply security.“It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective,” the foreign ministry said in a statement.Indian officials are currently conducting trade negotiations in Washington, whilst the US has increased tariffs on Indian goods by twofold to encourage New Delhi to decrease Russian oil imports. US negotiators have indicated that reducing these purchases would be essential for lowering India’s tariff rate and concluding a trade agreement, the Reuters report said.India and China have emerged as the leading purchasers of Russian seaborne crude exports, benefiting from reduced prices that Russia has had to offer following European buyers’ withdrawal and sanctions imposed by the US and EU after the Russia-Ukraine war that started in February 2022.Meanwhile India has indicated that it is exploring enhanced energy collaboration with the United States.“The current Administration has shown interest in deepening energy cooperation with India. Discussions are ongoing,” said foreign ministry spokesperson Randhir Jaiswal in the statement.
The UK economy grew slightly in August helped by an increase in manufacturing output, according to the latest official figures.
The economy expanded by 0.1%, the Office for National Statistics said, after contracting by 0.1% in July.
The government has made boosting the economy a key priority and pressure is mounting ahead of the Budget next month, but economists expect growth to remain sluggish over the next few months.
Many analysts expect that tax rises or spending cuts will be needed to meet the chancellor’s self-imposed borrowing rules.
The Institute for Fiscal Studies is projecting Rachel Reeves will need to find £22bn to make up a shortfall in the government’s finances, and will “almost certainly” have to raise taxes.
On Wednesday, Reeves said she was “looking at further measures on tax and spending, to make sure that the public finances always add up”.
The main driver of growth in August was the manufacturing sector, which grew by 0.7%.
However, the key services sector – which covers businesses in sectors such as retail, hospitality and finance – saw no growth during August.
Monthly growth figures can be volatile, and the ONS has downgraded July’s figure from its initial estimate of zero growth to a 0.1% contraction.
The ONS is focusing on growth over a rolling three-month period, and in the three months to August the economy expanded by 0.3%, which was a slight improvement on the previous figure.
“Economic growth increased slightly in the latest three months. Services growth held steady, while there was a smaller drag from production than previously,” said Liz McKeown, ONS director of statistics.
Yael Selfin, chief economist at KPMG UK, said that while the economy had returned to growth in August, the “outlook remains weak”.
She said households were facing higher costs for essentials such as food, while uncertainty about potential tax rises in the Budget was “expected to weigh on activity for both households and businesses”.
“As a result, we anticipate growth to remain sluggish over the coming months.”
Ruth Gregory, deputy chief UK economist at Capital Economics, called August’s growth “meagre”.
She said the increases in taxes for businesses that took effect in April this year – such as the rise in employers’ National Insurance contributions – were “undoubtedly playing a part in restraining growth”.
“There is little reason to think GDP growth will accelerate much from here,” Ms Gregory said.
“The disruption to the auto sector caused by the Jaguar Land Rover cyber-attack probably meant the economy went backwards in September.”
Earlier this week, the International Monetary Fund (IMF) predicted that the UK would be the second-fastest-growing of the world’s most advanced economies this year.
However, it also said the UK would face the highest rate of inflation among G7 nations both this year and next, as result of rising energy and utility bills.
A Treasury spokesperson said: “We have seen the fastest growth in the G7 since the start of the year, but for too many people our economy feels stuck.
“The chancellor is determined to turn this around by helping businesses in every town and high street grow, investing in infrastructure and cutting red tape to get Britain building.”
Shadow chancellor Mel Stride said the latest figures “show that growth continues to be weak and Rachel Reeves is now admitting she is going to hike taxes yet again, despite all her promises”.
“If Labour had a plan – or a backbone – they would get spending under control, cut the deficit and get taxes down.”
Daisy Cooper, Liberal Democrat Treasury spokesperson, said the government was “simply not doing enough to kickstart growth”.
“The chancellor must quit her slowcoach approach to the economy and finally drop her damaging national insurance hike, which has stifled business and hit high streets up and down the country.”
Business
Asian equities climb: Investors weigh US-China trade tensions, Fed rate cut expectations; gold rallies – The Times of India
Asian markets edged higher on Thursday as investors weighed escalating tensions in the US-China trade war alongside expectations that the Federal Reserve will continue cutting interest rates this year.The region’s gains follow a broadly positive session on Wall Street and mark a second consecutive day of recovery, as traders focused on softer US economic data and central bank signals that may favour further monetary easing.
Trump reignites trade war fears
Markets have been volatile this week after US President Donald Trump threatened 100% tariffs on Chinese goods in retaliation for Beijing’s new rare-earth export controls.When asked about the possibility of a prolonged trade conflict, Trump bluntly told reporters, “Well, you’re in one now… We have a 100 percent tariff. If we didn’t have tariffs, we would be exposed as being a nothing.”Despite the hawkish tone, treasury secretary Scott Bessent suggested a more conciliatory approach, proposing a potential extension of the tariff truce if Beijing delays its rare-earth restrictions.Trump still plans to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month.
Fed rate cut expectations support markets
Investors were also encouraged by data from the Fed’s “Beige Book” survey, which pointed to a softer US job market, echoing other recent weak economic indicators. Fed chair Jerome Powell had warned earlier this week that “the downside risks to employment appear to have risen,” reinforcing market bets on additional rate cuts.Economists, however, remain cautious. Bank of America noted that uncertainties persist over trade, inflation, growth, and US policy, including healthcare and drug pricing.
Safe-haven assets climb
The combination of trade war jitters, rate cut expectations, and a weaker dollar pushed gold to new daily records, reaching $4,234.70 on Thursday.
Key market figures
- India –
Sensex : UP 0.56% at 83,064.09;Nifty 50 : UP 0.54% at 25,459.70 (at 12 pm) - Tokyo – Nikkei 225: UP 0.9% at 48,088.07
- Hong Kong – Hang Seng: UP 0.2% at 25,953.67
- Shanghai – Composite: UP 0.1% at 3,914.85
- Euro/USD: UP to $1.1670 from $1.1645
- Pound/USD: UP to $1.3436 from $1.3400
- Dollar/Yen: DOWN to 150.54 from 151.24
- WTI crude: UP 0.8% at $58.71/bbl
- Brent crude: UP 0.7% at $62.34/bbl
- New York – Dow Jones: FLAT at 46,253.31
- London – FTSE 100: DOWN 0.3% at 9,424.75
Markets in Sydney, Seoul, Wellington, Taipei, and Manila also posted gains as traders balanced geopolitical risks with hopes for accommodative US monetary policy.
50% US tariffs: Indian refiners look to cut back on Russian crude imports; Trump claims India to stop buying oil from Moscow – The Times of India
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