Implementing Location-Optimal Battery Storage in the Dutch Energy System

Abstract

This study investigates the impact of spatial constraints and economic land-use considerations on the optimal placement of large-scale Battery Energy Storage Systems (BESS) within the Dutch high-voltage (HV) grid. In the rapid transformation of the Dutch electricity system—characterized by an increasing penetration of variable renewable energy sources (vRES) and a rising need for grid flexibility—BESS have emerged as a pivotal technology for congestion management, renewable integration, and frequency regulation. However, the absence of a systematic strategy for BESS siting creates inefficiencies in grid planning, escalates system costs, and introduces uncertainty for both market participants and the Transmission System Operator (TSO), TenneT.

To address this gap, the research poses the primary question: “What is the impact of spatial constraints and economic land-use considerations on the optimal placement of large-scale BESS from the perspective of the TSO in the Dutch HV grid?” This is further subdivided into three sub-questions: (1) identifying the key considerations in the BESS development and placement process as derived from academic literature and expert interviews; (2) assessing how restrictions related to competing land uses and exclusion zones affect optimal BESS placement; and (3) evaluating the influence of incorporating land costs on BESS siting outcomes.

The study employs a mixed-methods approach, integrating a comprehensive literature review, expert interviews with TenneT representatives and market participants, and an optimization model implemented in PyPSA-Eur. The model simulates BESS deployment scenarios under two temporal snapshots—2023, reflecting current grid conditions, and 2040, a future state with high electrification and stringent decarbonization targets. Three scenarios are analyzed: a BASE scenario with minimal spatial restrictions, a COL scenario that factors in regional land costs, and an EXCL scenario that enforces strict spatial exclusion zones.

Results from the 2023 analysis indicate that enforcing exclusion zones leads to a 43% reduction in deployable BESS capacity, with land costs exerting a relatively minor impact. In contrast, the 2040 simulations reveal a heightened dependency on BESS for grid stability, where the EXCL scenario still reduces capacity by 19%. Notably, certain nodes that initially received minimal BESS allocation under strict spatial constraints later demonstrate a significant increase in capacity, underscoring an intrinsic system requirement for storage despite suboptimal placement conditions.

Further findings highlight the grid’s adaptive responses, including the expansion of cross-country high-voltage direct current (HVDC) connections, particularly between the Netherlands and Great Britain, and stable average line loading and peak frequency metrics. These outcomes suggest that while spatial constraints influence the localization of BESS, the overall grid performance can be maintained through alternative measures such as transmission expansion and flexible generation.

The study concludes with policy recommendations advocating for a national BESS deployment roadmap, streamlined permitting processes, and differentiated grid connection fees to prioritize locations that maximize system benefits. This research bridges the gap between energy infrastructure planning and land-use policy, offering actionable insights for TSOs, BESS developers, and policymakers to foster a resilient, cost-effective, and spatially integrated energy system.