Stedin: stimulating new technologies and innovation is needed for a robust energy system

In the first half of 2025, Stedin Group invested €610 million in expanding and reinforcing the energy grid. That is 18% more than in the same period last year. Further progress has also been made towards better utilising the electricity grid. At times, even this is not enough: the congestion of the electricity grid is too much and waiting lists are getting longer. Much more is needed to achieve a robust energy system, the grid manager concluded in its half-year report. Stedin also calls on the new coalition government to ensure that it makes sense for the market to invest in innovative solutions, such as in energy generation and storage technologies and flexible use of the electricity grid. 

Trudy Onland took office as Stedin's new CEO from 1 May, saying: ‘Our path towards a robust energy system requires us to invest in tomorrow's technology. This means trying out new initiatives together with the market, showing that they work, and scaling up. Storing and generating energy at specific bottlenecks in the system and using energy flexibly need to be worthwhile. It calls for even more cooperation between government authorities, market players, energy companies and grid managers. We are pleased that parliament is creating clarity by passing the Collective Heat Act, as heat plays an important role in the transition to a new energy system. More can be done, however: a new coalition government can make it easier for those who want to invest in hydrogen, heat storage, flow batteries and other technologies. This will allow us to build on our climate goals, improve our investment climate, increase housing supply and ensure an independent energy system.’

Transformer substations, failure tracers and NATO summit

Expanding the energy grid is still a vital step on the journey to a new energy system. Stedin expanded the electricity grid in the first half of 2025 by building five new distribution stations, installing 254 transformer substations and laying 573 kilometres of cable. The level of innovation in this area is also high. For example, 'plug-in' medium-voltage stations are being developed to speed up construction of the electricity grid. 

Photo: Chris Pennarts

Without energy, everything comes to a standstill. We saw clear evidence of this at the end of April during the large-scale blackout in Spain and Portugal. Security of supply is essential and is a key focus for Stedin. As Trudy Onland explains: ‘We are installing additional digital eyes and ears in our grid so that we can better monitor the load on the grid and resolve faults earlier.’ Over the past six months, customers in Stedin's service area had both electricity and gas 99.99% of the time, since attention to a safe gas grid also remains crucial. One of the highlights in terms of reliability in the past six months was the NATO summit. ‘During the summit, we took several measures to ensure a stable gas and power supply in the NATO area in The Hague’, Onland said. 

Better use in various ways

In the first half year, Stedin and other parties launched various initiatives to adopt a flexible approach to electricity grid capacity. Some examples include bidirectional electric vehicle charging in Utrecht, where car batteries support the grid by charging when a lot of electricity is being generated and discharging when there is a shortage. In addition, several 'flex contracts' have been concluded to reduce the pressure on the grid, including with an allotment complex in Houten, a wind farm in Rilland and government buildings in The Hague. Stedin also introduced the first grid-conscious new housing district in Merwede, where flexible energy consumption minimises the load on the electricity grid.

Financial results for the first half year

Operating profit for the first half of 2025 was €249 million (2024: €147 million) and net profit was €159 million (2024: €56 million). The increase was mainly due to more revenue from higher regulated grid rates and lower financial expenses. The rate increase follows from rising costs due to the expansion of the electricity grid. A one-off charge in 2024 for the early repayment of a long-term loan did not recur this year. A substantial part of the net profit will be invested in further expanding the grid. The many investments resulted in a free cash flow over the first half year of 2025 of €229 million negative (2024: €242 million negative). To finance this, Stedin has already raised €500 million with a green bond loan this year. A new €500 million credit facility has also been concluded with the European Investment Bank for future investments. On 16 July, Stedin drew a €250 million loan under this credit facility.