VRFB energy storage project financing options in Netherlands 2026

Does project finance apply to energy storage projects?

The general principles of project finance that apply to the financing of solar and wind projects also apply to energy storage projects. Since the majority of solar projects currently under construction include a storage system, lenders in the project finance markets are willing to finance the construction and cashflows of an energy storage project.

Is electricity storage a viable option in the Netherlands?

Electricity storage (using batteries) is currently limited in the Netherlands4. Furthermore, in contrast with electricity networks, electricity storage can be involved in multiple different business cases with varying types of risks, and thus different financing requirements.

How can public and private institutions invest in the Dutch energy transition?

Public and private institutions investing in the Dutch energy transition need to be able to make efficient and effective investment decisions, which requires a strong, consistent evidence-base. Policymakers are faced with questions such as: How can we finance a successful energy transition that will enable us to meet our climate ambitions?

Are solar and wind projects a good investment?

These projects will have long-term predictable revenue streams. In addition, lenders may be willing to finance merchant cashflows, but with less leverage and subject to detailed market studies and cash sweeps. These trends for solar and wind projects also apply to energy storage projects.

How much money does the Netherlands invest in electricity networks?

Figure 6: Overnight investments in electricity networks in the Netherlands 2020-2022. The total investment in electricity networks roughly amounts to about €2.55 bn in 2020, with largest investments made in distribution networks i.e. networks operated at voltage levels below 110kV.

Will a tax credit be available for energy storage projects?

However, with the passage of the Inflation Reduction Act of 2022, tax credits are now available for standalone energy storage systems, and thus lenders may be willing to provide bridge capital that is underwritten based on the receipt of proceeds from an anticipated tax equity investment, similar to renewable energy projects.