How SDE++, electric boilers with thermal storage, and Power-to-Heat come together in a derisked business case
The Dutch industry is at a turning point. The pressure to decarbonize is increasing due to stricter CO₂ targets, rising energy prices, and the ongoing expansion of emissions trading. At the same time, grid congestion is becoming an increasingly significant bottleneck for electrification. Where companies used to ask whether sustainable heat was possible, the question today is: how can we do this affordably, at scale, and without further straining the electricity grid?
For industrial sectors such as food, dairy, animal nutrition, confectionery, plastics, and refining, process heat is essential. These often involve continuous production processes at temperatures between 120 and 400°C. This heat demand offers opportunities to use sustainable electricity intelligently without overloading the grid.
This article explores the relationship between SDE++, grid congestion, time-based contracts, and solutions such as electric boilers with thermal storage (Power-to-Heat). Using a practical case from the confectionery industry, we demonstrate how a derisked business case can be created.
Grid congestion as a structural problem
Grid congestion is no longer a temporary phenomenon. Grid operators consistently indicate that new or upgraded connections can take years. Companies, especially in industrial regions and business parks, are hitting limits. Requesting additional electrical capacity is often impossible or only possible under strict conditions.
At the same time, the supply of renewable electricity is growing rapidly. Solar and wind parks increasingly generate electricity when demand is low, leading to negative electricity prices, curtailment of renewable generation, and inefficient use of the energy system. For industry, this creates a paradox: there is abundant renewable electricity, but it is not always available when the grid allows. The key can be found in heat.
Time-based contracts and flexible capacity
Grid operators are increasingly experimenting with time-based contracts and flexible connections. Companies can access power when the grid has capacity, for example, outside peak hours or during high solar and wind generation. However, this requires installations that can adjust their consumption.
This is where Power-to-Heat with thermal storage comes in. By converting electricity into heat at flexible times, industry can function as a sponge for renewable energy, not as a passive consumer, but as an active grid congestion mitigator.
Electric boiler vs. Electric boiler with thermal storage
An electric boiler (e-boiler) is a relatively simple technology: electricity is directly converted into heat. Without storage, its application is limited. The e-boiler consumes electricity when heat is needed—not when electricity is cheap or abundant.
Combining an e-boiler with thermal storage creates a fundamentally different system. Heat is produced when electricity is cheap, sustainable, or even negatively priced. This heat is stored and later used in the production process.
The result:
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- Reduced dependence on grid capacity
- Lower OPEX through smart electricity purchasing
- Better utilization of renewable electricity
- Higher reliability of process heat
Thermal storage thus acts as a buffer between generation and demand, making the business case robust and scalable.
The role of SDE++
The SDE++ scheme is a crucial accelerator for industrial decarbonization. For Power-to-Heat and e-boilers with thermal storage, SDE++ provides important financial backing. By subsidizing CO₂ reduction over a longer period, a predictable cash flow is created, lowering investment risks and speeding up decision-making.
Importantly, business cases are increasingly structured so that the industry itself does not need to invest. Models such as Heat Purchase Agreements or PPA-like structures for heat make sustainable heat accessible without industrial capital investment.
Derisked business case through heat purchase agreements
In a Heat Purchase Agreement, an external party assumes the investment, operational risk, and maintenance. The industrial client only buys heat at a predetermined price. Benefits for the industry include:
- No on-balance-sheet investment.
- Predictable energy costs.
- Protection against price volatility.
- Immediate CO₂ reduction.
By combining SDE++, flexible electricity procurement, and thermal storage, a derisked business case emerges that is resilient to policy changes and market fluctuations.
Case Study: Confectionery Industry
A concrete example comes from the confectionery industry, where continuous heat is essential for cooking, molding, and drying. In this sector, we collaborated with a hard candy producer known for the iconic Napoleon brand. In this case, sustainable process heat is provided via a combination of concentrated solar energy, Power-to-Heat, and thermal storage. The installation is plug-and-play integrated into the existing factory without disrupting production.
By purchasing electricity flexibly during periods of high renewable generation, the factory acts as a congestion mitigator for the grid. At the same time, operational costs decrease and the CO₂ footprint is significantly reduced. What makes this case special is that sustainability is not just a marketing promise, but an operational reality. The slogan “Made by the Sun” symbolizes an industry actively contributing to system solutions.
Industry as part of the solution
The energy transition requires a new interplay between industry, grid operators, and energy producers. Industrial heat can play a key role in balancing the energy system. By investing in flexibility, storage, and smart contracts, industry can become:
- A solver of grid congestion.
- A consumer of excess renewable electricity.
- A stable partner for grid operators.
- A leader in CO₂ reduction.
This requires different conversations, KPIs, and perspectives on energy.
Free energy & grid scan
Every factory is different. Temperature profiles, production schedules, and grid connections vary by location. Therefore, every solution begins with insight.
A free Energy & Grid Scan maps:
- Heat demand and temperature levels
- Grid capacity and congestion risks.
- Production flexibility.
- Potential for e-boilers, storage, and Power-to-Heat.
- Eligibility for SDE++ 2026 and beyond.
Based on this, a concrete roadmap towards sustainable heat without investment is created.
Conclusion
Grid congestion does not have to slow industrial decarbonization. On the contrary, with the right combination of technology, contracts, and subsidies, it can become an opportunity.
E-boilers with thermal storage, Power-to-Heat, and SDE++ make sustainable heat affordable, reliable, and scalable. Industry thus transforms from a problem bearer into a problem solver. The energy transition is won not on paper, but on the factory floor.
