Venlo Greenport Local Energy Hub

Limburg is experiencing a congestion issue in the mains electricity grid, which makes it hard for existing companies to expand and for new companies to establish their business here. At the behest of Stichting Duurzame Bedrijventerreinen, Volantis released a report that shows that investing in one or more local energy hubs may be a solution to the problem – a solution allowing companies to exchange power as needed, or to convert electric power in hydrogen.

The Netherlands has committed to weaning itself off natural gas by 2050, which means that companies as well as private citizens must find greener alternatives. One option is switching from natural gas to electric power. However, the electric power grid is quite congested. ‘We’re in a very difficult situation,’ says Jacko D’Agnolo, the Sustainable Business Parks project manager. ‘We must stop using gas, but at the same time, it’s currently impossible to switch to electric power.’ Applications for bulk power consumption connections and for an expansion of the power grid are being rejected and new companies are unable to establish their business here because they cannot be connected to the grid. ‘At the same time, other companies are reporting a surplus of electricity due to solar panels on their roofs, with the excess energy generated by the panels now transmitted to the mains grid, which is causing congestion. The more sustainable solution would be for these companies to transmit their energy directly to the companies in the surrounding areas, but this is prohibited under the law. Grid operators have a monopoly on this.’

The board of directors of Stichting Duurzame Bedrijventerreinen (Sustainable Business Parks Foundation) looked into smart ways to use this valuable sustainable energy. The foundation commissioned Volantis to determine how this renewable energy can be used at the business parks through local energy hubs.

It is striking according to Jan Houwen, CEO Volantis, that the energy network is overcrowded only in theory. ‘Energy network operators have sold energy contracts for maximum capacity, while many companies may need half as much capacity as agreed in the contract. Yet these contracts cannot be opened up and the excess contract space cannot be sold to other companies -who can use the capacity.’

Local energy hubs are to provide a solution to the problem. ‘The hubs can come in different varieties,’ explains Peter Honig, a New Energy Business Manager at Volantis. ‘For instance, surplus energy can be diverted to an external battery, from which other companies connected to it will be able to retrieve it. Alternatively, the surplus energy can be diverted to a large charging station for electric vehicles and trucks at the business park, or be converted into hydrogen that can be used as fuel for hydrogen-fuelled trucks.’ Honig says hydrogen may be the solution to other problems, as well.

‘We could add it to the existing gas distribution grid, up to 20 per cent of its capacity. Suppose that all devices that are normally completely gas-fuelled will now be partially hydrogen-fuelled (20 per cent). Our analysis shows that there are many flexible solutions to would allow for the local distribution and temporary storage of energy. This will free up some of the power grid, which will allow other companies to expand or new companies to establish their business here.’

A quick scan performed in response to an analysis performed by Volantis, in association with Rabobank and the Limburg provincial authorities, showed that several business parks in Venlo can be equipped with a local energy hub. The most likely candidates are Tradeport (e.g. the port and its surroundings) and Greenport, but Noorderpoort, Spikweien and Tradeport Zuid also present interesting opportunities. ‘If we genuinely wish to realise an LEH in Venlo, companies will have to join hands and collaborate. Stichting Duurzame Bedrijventerreinen will talk to several companies and organisations in the coming period so as to be able to move on to the next steps,’ says D’Agnolo.

‘It is imperative that something is done. Thanks to the model that emerged from this study, we know that the planned reinforcement in 2025 and 2027 from main grid operator Tennet will be insufficient to meet the increasing demand for electricity.’ Houwen agrees that steps are being taken in the short term. ‘The study has been conducted, the results are in; now we have to move on. Our aim, if legislation allows, is to get an experimental status at a Venlo business park, such as Greenport. For instance, we want to start testing with a Local Energy Hub without hindrance and demonstrate in practice that these hubs are a solution to energy network congestion. And in addition show that there is a business case that can serve as an example for business parks all over the Netherlands.’

Setting up an Energy Hub, from idea to realisation, takes two years. ‘That’s fast,’ says Honig. ‘Much faster than reinforcing Tennet and Enxis’ networks. Local Energy Hubs can provide a quick solution to a major social problem. Simultaneously, the grid operators can strengthen the grids which is also going to be necessary for the plans up to 2050.’

This project was partly made possible thanks to funding from the European Union’s European Regional Development Fund and the Province of Limburg.