Grid congestion: What every European property owner needs to understand
A European real estate owner receives the keys to a newly constructed building. Modern facilities, energy-efficient systems, ready for tenants. But there's a problem: no grid connection approval. The building sits empty for a year, or you’d need to start your first years of business with a diesel aggregator.
This isn't an isolated incident. Across Europe, property owners are discovering that their expansion plans face an unexpected barrier - one that can't be solved with better project management or larger budgets. The electricity grid simply doesn't have capacity.
"We've encountered situations where a building was delivered, completely ready to use, but couldn't be occupied for a year because the grid connection wasn't approved," explains Kees van Alphen, Managing Director at Hello Energy. "This is becoming the new reality for property owners across Europe."
In this article, we explore why waiting for grid expansion isn't a viable strategy and share practical insights on how property owners can use data-driven solutions to operate within existing capacity constraints. You'll discover why early action provides competitive advantage and how quality energy data becomes your most valuable asset in managing grid limitations.
Understanding grid congestion: the capacity crisis
When a property owner needs additional electrical capacity - whether for building expansion, new equipment, or tenant requirements - the process seems straightforward. Submit an application to increase your contracted capacity and wait for approval.
Here's what actually happens.
"In most cases, you'll hear: that's unfortunate, but there's no capacity available," Van Alphen states. "And it's not a waiting time of a few months. It's a waiting time of years."
The scale of this challenge is staggering. Currently more than 500 GW of renewable energy capacity across ten European countries is waiting for grid connection assessments, with some projects facing delays of up to nine years. In the UK, businesses report connection delays ranging from two to twelve years, with some not expected to connect until well into the 2030s.
For commercial real estate, the impact extends beyond delayed expansion. Data centres face an average of seven to ten years to connect to the grid in established European hubs. Office buildings planning electrification of heating systems encounter multi-year waits. Industrial properties requiring additional capacity for manufacturing equipment hit capacity walls that halt growth entirely.
This grid congestion creates immediate pressure on portfolio management. Properties designed for specific tenant uses may no longer accommodate those activities.
"People should understand that the capacity you currently have contracted might even be reduced in the future," Van Alphen warns. "If you exceed your allocated capacity, you'll face penalties first - but eventually, they'll simply cut you off."
ESG targets requiring electrification become unachievable. Revenue projections based on expansion plans evaporate. The grid constraint isn't just limiting growth - it's creating operational risk for existing assets.
Why waiting isn't an option - and what you can do instead
The natural response to grid congestion is straightforward: wait for the grid to expand. Unfortunately, that response isn't realistic.
"Can you realistically just wait until the grid is expanded? No, that's not realistic," Van Alphen states directly. "Part of the cause is electrification - we're using much more electricity as we move away from gas. The investments required are very high, funding is limited, and it simply takes a very long time to expand the network."
Industry data shows that over 60% of planned infrastructure projects are running behind schedule. Permitting processes alone can consume a decade. The gap between grid development and demand continues widening, not narrowing.
Solutions that rely on grid expansion won't deliver in relevant timeframes. Real estate owners must work within existing constraints more intelligently.
"Software and behavioural adjustments can be implemented much faster," Van Alphen observes. "They'll deliver results in the short term."
Every property has consumption peaks and valleys. With detailed consumption data, property owners can identify what creates peaks and shift activities to off-peak periods - creating capacity within existing limits.
"Then you can add your own capacity by generating solar energy, storing it in your battery, and when you have those peaks, instead of exceeding your contracted capacity, you draw from the battery," Van Alphen notes.
This combination creates flexibility that grid expansion cannot deliver quickly enough to matter.
Where to start: a data-driven approach
Understanding the theory is one thing. Implementation is another. Let's be honest - this isn't plug-and-play technology that works out of the box.
"This software is all still relatively new," Van Alphen acknowledges. "It's not like it's included in your Microsoft Office package."
The starting point is understanding your consumption patterns. Without granular data, you're operating blind.
"If you don't know what's going out and what's happening at any given moment, you can say very little about it," Van Alphen explains. "The more accurate the data, the better you can do peak shaving so that consumption is spread out."
This analysis reveals opportunities invisible in monthly utility bills. Cooling systems that run during peak demand hours. Manufacturing processes that could operate overnight. Charging infrastructure that draws power during the highest-cost periods.
"You need to analyse based on your consumption data: where are those peaks, what am I doing at that moment, and can I do what I'm doing at that moment at a different time?" Van Alphen explains.
Each adjustment creates headroom within existing capacity limits. Many properties have more flexibility than they realise.
Don't wait - prepare your portfolio now
Grid congestion isn't improving. In 2024 alone, European transmission operators spent €4.3 billion managing grid congestion through emergency measures - money spent managing the problem, not solving it.
Real estate owners face a choice: wait for solutions that won't arrive in time, or adapt now using the capacity that exists.
The difference between properties that can grow and properties that can't? Data.
"For businesses, the most important thing they can do is use data, solar, and batteries to make maximum use of available capacity," Van Alphen states. "The more accurate the data, the better you can manage your consumption within existing limits."
Properties with detailed consumption data can identify where capacity is wasted, where peaks can be shifted, where on-site generation makes expansion possible. Properties without that data are simply guessing - and hoping the grid catches up before their business plans become impossible.
The grid won't catch up in time. But data-driven management creates options within constraints that already exist.
The question is whether you'll build that capability while you still have choices, or wait until capacity constraints force reactive measures with fewer options and higher costs.
Taking grid constraints seriously
Grid congestion has evolved from infrastructure challenge to business constraint. European real estate owners face a reality where expansion plans encounter capacity walls that can't be solved through patience or larger budgets.
The uncomfortable truth? Your current capacity allocation isn't guaranteed. Future expansion may be impossible for years. Waiting for grid expansion isn't a strategy - it's accepting competitive disadvantage.
Data-driven approaches create flexibility within existing constraints. Properties with detailed consumption data can identify optimisation opportunities, shift peaks, and make on-site generation viable. Properties without that data are simply hoping the grid catches up.
The question isn't whether grid congestion will impact your portfolio. The question is whether you'll adapt now whilst you still have options - or wait until constraints force reactive measures with fewer choices and higher costs.
Understanding your consumption patterns is the first step. That's the difference between properties that can grow and properties that can't.
