ACM to require private networks to help utilize the public grid better

The Netherlands Authority for Consumers and Markets (ACM) will require private networks to help with reducing the burden on the public grid during peak moments. Until now, this requirement had only applied to users that are directly connected to the public grids of system operators. ACM will make changes to this with its ‘Code decision regarding mandatory participation of CDSs in congestion management’ (in Dutch: Codebesluit verplichte deelname GDS aan congestiemanagement).

Congestion management means that producers or buyers of electricity help (in exchange for a compensation) in reducing the burden on the grid by temporarily reducing injection or consumption during peak moments. As a result, grid capacity is freed up, and more sustainable projects can be connected. Requiring private networks to participate in congestion management, too, will allow system operators to use the flexibility that is available at businesses that are connected to private networks.

Private networks are private grids to which various business users are connected, for example, large wind farms or solar farms where the owners themselves have built the grids. These types of private networks are also called Closed Distribution Systems (CDSs). In the Dutch province of Flevoland, which is dealing with a significant congestion problem, several wind farms and solar farms are connected to such CDSs. This code amendment ensures that public system operators are able to require the owners of CDSs, too, to offer flexibility. If system operators do so, these wind farms and solar farms will also help in reducing the burden on the public grid during peak moments. It is now up to the system operators to make sure that users comply with this requirement.