Alliander invested €968 million in the expansion and better utilisation of the energy grid

29 July 2025

Smarter energy use is crucial in keeping the network reliable and affordable. Over the first six months of 2025, network company Alliander invested €968 million, mainly in upgrading, expanding, and maintaining its gas and electricity networks. This was 21% more than in the same period last year. But significant growth is not enough in itself: more is still needed. Smarter use of energy prevent peak loads on the power grid is crucial, not just for businesses but also for homes. If we use the power grid more efficiently and smarter, energy will continue to be accessible and affordable for all, both today and in the future.

All over the country, energy networks are being expanded and prepared for increasing demand for electricity and the switch from natural gas to renewable gases. Where possible, we are stepping up the construction and upgrading of energy networks, and the power grid in particular. Still, demand for new and larger connections to the grid continues to rise at a faster rate than we can build. With 9,581 requests for a connection, the waiting list for companies has not fallen, and households, too, increasingly face the consequences of congestion on the power grid. Earlier this year, for example, it became clear that planned housing projects in the provinces of Noord-Holland and Friesland will not immediately be able to be connected to the grid.

Maarten Otto, Alliander CEO and chairman of the Board of Management: ‘The figures speak for themselves: we continue to work hard on expanding the energy grid. We are, however, increasingly facing limits in the execution of our work. Due to a shortage of technicians, space and materials, as well as the Dutch government’s policy to curb nitrogen emissions, we are simply unable to get everyone connected to the grid right away. This is why we are looking for smart and alternative solutions, so as to be able to help everyone, for instance by working with our customers to explore ways in which they can use electricity more flexibly. One of these customers is PepsiCo, with whom we have sealed a flexible contract that only lets them consume electricity when there is sufficient capacity available on the grid. PepsiCo’s flexible use of the power grid enables them to make their crisps factory in Broek op Langedijk more sustainable. Over the past six months, we signed over 250 such flex contracts, freeing up capacity on the grid and allowing us to help other customers. However, this is only the beginning. Since we are going to need much more flexibility in the usage of the grid, we are working hard to further develop new contract types. Flexibility will be integral to the new energy system. The more companies and households opt for flexibility, the better able we will be to make and keep energy accessible to all, and the less we will need to expand. It will not only make the energy network more robust, but it will also benefit the affordability of the energy system as a whole.’

Flexibility for everyone

Even in residential districts, flexible use of electricity is increasingly becoming embedded into our approach to energy usage: this is a way for households to help ease the pressure on the power grid. On top of that, they will see their energy bills go down as electricity consumption is cheaper during off-peak hours. Over the past six months, various initiatives were launched to incentivise consumers to spread out their electricity consumption over the day. EV owners, for example, were encouraged to not charge their cars at home during peak hours, which has brought down their consumption during the evening peak by an average of 68%. This was reason for network operators to scale up and engage in closer collaboration with the various energy providers. Additionally, other organisations are also taking steps to raise customer awareness of the necessity to use energy more evenly throughout the day. The Dutch government is calling on consumers to reduce their electricity consumption between 4pm and 9pm, with energy providers offering lower tariffs during quieter periods on the grid.

Maintain momentum in construction

In the first half of 2025, 1,248 transformer substations were built or converted, and 1,312 kilometres of cable was laid. A total of 74 kilometres of new gas pipeline was installed, primarily to replace existing pipeline and to ensure the gas grid remains safe and reliable.

Walter Bien, Alliander CFO and member of the Board of Management: ‘Total investment was €968 million, up €171 million on the first half of 2024, meaning we invested 21% more compared to the first half of last year. Investments were up due in part to the great amount of work needed to overhaul the energy grid. By taking a different and smarter approach to how we work, we were again able to build up momentum in expanding the grid. The strategy we have initiated to outsource major work packages to contractors and thus increase capacity has shown that acceleration is indeed possible.’

To keep up this momentum, having the enabling conditions for infrastructure construction in place remains a priority. From local authorities to contractors, we need everyone’s help for that. There is still a need for swift and clear decision-making on where to build power stations, where to fit in transformer substations, and where to construct district heating networks. And more technicians are needed in the short term to do the work. What is equally essential is that we decide jointly with the government and industry where to integrate alternative energy carriers such as hydrogen and biomethane into the energy system. This will provide clarity on where various types of infrastructure will be needed, allow us to begin construction (at the right locations), and keep the energy system affordable.

Half-year financial results

Alliander’s net profit for the first half of 2025, without including exceptional income, came in at €127 million (first half of 2024: €122 million). When including exceptional income, the net profit for the first half of 2025 totalled €197 million (first half of 2024: € 879 million, mainly influenced by the one-off gain from the sale of Kenter) Operating income for the first six months totalled €1,725 million (first half of 2024: €2,315 million). The operating profit for the first six months of 2025 came in at €293 million (first half of 2024: €963 million). The negative cash flow for the first half of 2025, without including the proceeds from the sale of the high-voltage network, was just under €700 million. In the same period of 2024, negative cash flow, excluding the Kenter sale, reached nearly €500 million.

For more details, see Alliander’s 2025 half-year report.