The energy transition is in full swing. A main component is the electrification of many processes: from transport and heating to highly energy-intensive industrial processes. This has resulted in a large buildout of generation capacity in wind and solar and also consumption of electricity. Many EU countries have done this to great success, but the system underneath is squeaking and creaking. Examples include waiting lines for electricity connection in construction projects and negative energy prices during peak electricity production. Will the initial success now threaten to undermine the energy transition?

To make the energy transition a success, we need to look at our energy system in a different way, argues Kay van der Kooi: "Grid operators are still incentivised for uptime/availability of energy instead of facilitating the energy transition, resulting in current developments outpacing the updating of the grid." To better facilitate the transition, we not only need a build-out of the grid, but also more energy storage capacity alongside smart supply/demand solutions, says Ronald Huisman: "We're losing momentum by focusing too much on the supply side. We're dealing with economic issues that economists need to solve."

Both experts agree that the energy transition also provides ample opportunities for investors. "Where there is scarcity and volatility, there is also value", argues Van der Kooi. "We must put capital to work where it creates the most value. In my view, storage and flexibility solutions, such as energy hubs and cooperations, will be the next investment opportunity."

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