Stedin: More capacity created on the electricity grid, but the situation is increasingly acute

By working intensively with business, Stedin succeeded in freeing up more space on the electricity grid in 2025. These efforts released 279 megawatts of capacity – four times more than in the previous year. Nevertheless, Stedin was unable to prevent the electricity grid from becoming congested in an increasing number of locations in 2025, the company writes in its Annual Report. As a result, the waiting list for companies grew by nearly 800 applications. Although Stedin significantly expanded the grid by installing new distribution stations and cables, these measures have not been sufficient to keep pace with rapidly growing demand. Stedin expects that more consumers will increasingly feel the effects of grid congestion. This underlines the need for greater awareness among everyone that there are ways for them to contribute, for example by using less electricity between 4 p.m. and 9 p.m.

CEO Trudy Onland: ‘Over the past year, we have worked tirelessly to expand and reinforce the electricity grid. Despite this, congestion on the grid is increasing and has become a societal challenge affecting many people and businesses. We are doing everything within our power, but we cannot solve this problem on our own. If we want to create room for new homes and businesses, it is essential that everyone – especially existing users – reduces electricity consumption during peak hours. Every kilowatt taken out of peak demand immediately creates space on the grid and could enable the connection of an additional home. Fortunately, this is becoming increasingly feasible thanks to new technologies such as smart charging, grid-supporting batteries and controllable heat pumps. However, time is running out. Looking ahead, the pressure on the electricity grid will only increase, and the waiting list for businesses continues to grow. In the short term, overloaded electricity grids will affect a growing number of consumers, including housing projects such as those in Utrecht. This is a harsh reality, and one we must be open about.’

More and more businesses are avoiding peak periods on the grid

Thanks to a range of initiatives and collaborations with companies, Stedin was able to remove more than 160 businesses from the waiting list last year. An increasing number of companies are actively exploring how they can help avoid ‘rush hour’ on the electricity grid by using energy more flexibly. One concrete example from last year is the arrangements made by TenneT and Stedin around a large battery system in Zeeland. In Utrecht, agreements have been reached with all public charging station operators to slow down charging during peak hours. However, more needs to be done. In 2026, Stedin will therefore continue to focus on new partnerships and flexible contracts to ensure the electricity grid is used as efficiently as possible. Stedin is also calling on existing customers to save energy during peak periods and return any unused connection capacity. 

Electricity substations installed more quickly

In addition to forming partnerships to make better use of the grid, Stedin is continuing to expand the electricity grid. Last year, the grid operator laid 1,203 kilometres of new cables and installed 503 new substations – 42% more than in 2024. To support this acceleration, Stedin has contracted several new companies to construct distribution substations and roll out the ‘neighbourhood approach’. Under this approach, the entire electricity network in a neighbourhood is renewed in a single, coordinated effort. Stedin has already launched this approach in 22 neighbourhoods. Its rapid implementation is only possible through close cooperation with local authorities. Stedin has now reached agreements with almost all municipalities in its service area to develop a single, integrated plan for each neighbourhood, covering both capacity expansion and the placement of new substations. As a result, the preparation time for installing substations has been reduced from nine months to just three.

Financial figures

Last year, Stedin invested €1.3 billion in, among other things, the expansion of the electricity grid and the maintenance of the gas network – an increase of 18% compared with the previous year. At €449 million, the operating profit for 2025 was higher than the previous year (2024: €306 million). Financial expenses decreased by €23 million, resulting in a profit after tax of €278 million (2024: €158 million). A substantial portion of this profit will be reinvested in the expansion of Stedin’s networks. As a result of these investments, free cash flow amounted to negative €484 million (2024: negative €469 million). To finance this, Stedin issued two new green bonds and, in 2025, drew its first loan under a new credit facility with the European Investment Bank.