Spring note 2024: Cabinet plans energy storage concretized
Earlier this week, the Cabinet published the Spring Memorandum 2024. Among other things, the Spring Memorandum discusses additional Cabinet investments to accelerate the Dutch energy transition. It also discusses stimulating energy storage and conversion. The main points of the Spring Memorandum 2024 are listed below.
Solar and storage pilot projects
Last year it was announced that the Cabinet intended to spend €416 million on a battery obligation at solar farms. This measure aims to achieve additional sustainable electricity production through deferred delivery. PBL subsequently tested this measure for its effectiveness and commented on the one-sided spending of these funds. PBL's conclusions were included in the Spring Memorandum 2024 in which the cabinet now has more insight into how this budget will be spent. The plans presented show that the cabinet is allocating €100 million for now in 2025 for storage pilots at solar parks. The knowledge and experience gained from these pilots will be included in the further development of the scheme for the following years, for which a budget of €200 million is now set aside. Furthermore, the explanation in the Spring Memorandum shows that the government does not want to limit the pilot to batteries at solar parks, but wants to extend it more broadly to other energy storage options, such as heat storage. The subsidy scheme is expected to open on Jan. 1, 2025.
Investments Scaling up innovative flex
Achieving a CO2-neutral electricity system requires flexibility in both the supply side and demand side. The government therefore considers it important to gain experience with more ways for flex capacity and storage beyond the (limited) existing options, such as lithium-ion batteries. Hence, the ministry intends to broaden the existing DEI+ scheme that encourages innovative technologies for (medium-)long-term storage. It is expected by the ministry that €40mln per year can give a good impetus to the development of (medium-)long-term storage.
Clean and emission-free construction
In the Spring Memorandum, specific funds are made available for electricity storage for the purpose of Clean and Emission-Free Building, earmarking a total of €334 million. By broadening this scheme, investments can now be made in battery containers and new solutions such as deployment of flywheels to capture peak power, among others.
Driving heat transition
Further driving the heat transition is central to the Spring Memorandum's climate plans. Thus, a Guarantee Fund for Heat Networks is being established with €215.5 million being allocated. This guarantee fund will guarantee the interest and repayment obligations of heat companies. A guarantee enables heat companies to attract more loan capital on more favorable terms. There will also be a national subsidy scheme for heat networks; €972.5 million has been allocated for this purpose. This proposal concerns a national subsidy scheme for heat networks to reduce the unprofitable top.
