Toward enhanced collaboration for the strategic integration of battery storage within energy hubs in the Netherlands

Abstract

The Netherlands is in the middle of the transformation of the energy system. As electricity demand and (decentralized) renewable electricity generation grow, the electricity grid is increasingly facing congestion. This threatens the pace of electrification, business growth, and sustainability ambitions. Energy hubs (EHs), local and decentralized energy systems, have emerged as a potential solution, especially if they include battery storage. This helps local balancing and efficiency. However, the development of these EHs, including storage on Dutch business terrains, is lagging behind.

This research shows that the lack of collaboration, due to misalignment of interests of network operators (DSOs) and and EH collectives, is a critical factor that delays the development of EHs. This research explores how design, especially strategic and participatory design, can play a role in addressing these challenges. The goal is to understand how collaboration between DSOs and EH collectives can be designed to facilitate battery storage integration in Dutch business terrains. This is done through a literature review, stakeholder interviews, and participatory co-creative workshops.

The literature review showed that EHs can be considered to consist of four interconnected elements: technology, organization, regulation and finance. Each element influences the others, revealing a web of dependencies that must be managed strategically, as battery operations can also pose a risk for grid congestion. Interviews showed that actors in the system differ in drivers and barriers. Four main tensions were identified:
- Operational control of batteries,
- Capacity allocation,
- Risk allocation,
- Uncertainties in emerging contracts

Co-creative workshops with different stakeholders offered a way to discuss these tensions and align interests. In the workshop, two decision-making scenarios were explored and evaluated: DSO-led flexibility and EH-led flexibility. Results showed that stakeholders generally preferred a hybrid future, where DSOs act as facilitators and the EHs have control over battery use. Participants emphasized the need for EH authority, mutual trust, fairness of compensation and reliability of the systems. The workshop also revealed boundary conditions to achieve these needed values and move toward grid integration of battery-based EHs. Based on these insights, two tools to support EH developers, DSOs, and regulators in navigating the complexity have been developed:

- A morphological chart that shows options of the EH configuration
- A roadmap showing steps for each aspect of the EH toward system integration

This thesis contributes to the energy transition by offering a deeper understanding of the problem, a shared vision for the preferred future, and clear requirements to achieve it.