Electricity grid congestion remains
Double energy tax on energy storage continues to hinder energy transition
The abolition of the double energy tax on energy storage systems is again delayed, State Secretary Vijlbrief reported today to the House of Representatives. Due to the corona crisis, the Ministry of Finance has not had enough time to include the abolition in the 2021 tax plan. This to the great disappointment of Energy Storage NL (ESNL), FME's energy storage platform. Stefan Olsthoorn, industry manager ESNL: "The need for energy storage is great. In large parts of the Netherlands the electricity grid is locked: the supply of sustainable energy here is greater than the available capacity. Storage ensures that energy can be captured at peak times, preventing grid congestion."
Currently, energy storage involves paying taxes both when electricity is charged and when it is discharged to the final customer. The double taxation is a major bottleneck for entrepreneurs. It stands in the way of the further development of this storage technology and thus constitutes an obstacle to achieving our climate goals when sustainable electricity can no longer be delivered to the grid. This in times when the development of energy storage is not only important for the energy transition, but also essential for our future earning power.
GreenLeft, together with VVD and D66, therefore asked the government to find a solution to this problem back in 2018. Then-Secretary of State Menno Snel recognized the problem and announced measures so that a solution could take effect in 2021. With the delay that has now occurred, an amendment to the law is not expected until next year, leaving a solution to this problem at least four years away. This while Minister Wiebes just this week underlined the potential of energy storage by investigating whether the development of energy storage can be subsidized. This creates the situation that subsidies for energy storage will soon flow back to the government via the tax authorities. Stefan Olsthoorn: "Energy storage thus mainly means a financial surcharge for the tax authorities while Dutch entrepreneurs are disadvantaged." Energy Storage NL therefore calls on the cabinet to quickly resolve the problems surrounding the double energy tax for energy storage and still include it in the 2021 Tax Plan.