Electricity demand is growing faster than the rate at which grid operator Alliander can expand the grid, CEO Maarten Otto said when he announced annual figures for 2022. More electricity was used last year because consumers and companies bought more electric cars, solar panels and heat pumps.
To keep up with growing demand, one in three ways to strengthen the electricity grid will have to be opened in the coming years, says Otto. In addition, according to the CEO, 20,000 electric houses will have to be added in the coming years. But the network operator also faces shortages of personnel and equipment. “This means that in the near future, unfortunately, we will temporarily not be able to help all consumers and businesses with a low-volume connection when the network in the neighborhood is full,” says Otto. In some places the electricity grid is already full and the CEO expects this to happen in more places in the coming years.
Alliander temporarily puts strain on the grid to still be able to meet the high electricity demand. As a result, voltage problems can arise more often, whereby people with solar panels cannot always give energy back, the light in the house flashes or the electricity can fail in a house or in a neighborhood. According to the manager, if and when this will happen is difficult to predict because it depends on how much electricity is consumed at the same time.
Last year, the company laid more cables and installed more electric houses than it did in 2021 to meet growing demand. Last year Alliander laid more than 2,200 kilometers of new electrical cables and installed or converted more than 2,000 electrical houses. A large part of the investments of more than 1.2 billion euros went to the maintenance and expansion of the gas and electricity networks, says director Walter Bien. In 2021, the network operator invested just over 1 billion euros.
Operating costs rose to 1.9 billion euros last year. According to Bien, this is partly due to higher tariffs from TenneT, the operator of the national high-voltage grid. The previous year, operating costs had been over 1.8 billion euros.
All in all, Alliander made a profit of 198 million euros. Less than the year before, in 2021 the profit was 242 million euros. Income increased in 2022 by 32 million to over 2.2 billion euros.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
