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ACM publishes for consultation the rules for the use of reserve capacity on the high-voltage grid

In order to utilize the existing grid as efficiently as possible, system operators are allowed to use the reserve capacity of high-voltage grids for transporting sustainably generated energy. As a result, the ‘shoulder lane’ becomes a ‘rush-hour lane’ for electricity generated by wind turbines and solar farms. The Netherlands Authority for Consumers and Markets (ACM) plans to include the rules governing the use of reserve capacity in the Grid Code, and, in that context, has published a draft decision on its website. That decision includes provisions about, for example, what compensations producers receive if they need to be interrupted due to grid disruptions.

The Dutch grid is extremely reliable. In order to guarantee that the supply of electricity is not jeopardized in the event of a disruption, all high-voltage gids (including extra-high-voltage grids) must have additional reserve capacity so that there is always a ‘shoulder lane’ available over which power can be transported. This is called the single outage contingency or n-1 criterion. In order to make additional transport capacity for sustainable generated energy available, this reserve capacity can be used for the transportation of power generated by wind or solar farms. In that way, new producers can be connected to the high-voltage grid’s rush-hour lane. In case of grid disruptions, these producers can be interrupted immediately so that the reserve capacity can be used for the undisrupted supply of energy of other customers.

As producers will miss out on revenues if they are suddenly interrupted due to an outage, ACM believes that system operators should pay compensation in such situations. In its draft decision for the Grid Code, ACM discusses two options for such compensation schemes: compensating the costs that have actually been incurred (this is comparable to the compensation for non-market-based redispatch) or following the existing general compensation scheme for outages. ACM invites stakeholders that have an interest in the draft decision to submit their opinions on these two options. ACM also proposes to give system operators more room for using the rush-hour lane on rail systems. This goes further than the system operators’ proposal. That creates even more room for connecting sustainable production. Also, ACM has made the grid design criteria more concrete.

Exemptions

There are locations where it is not yet feasible for system operators to have reserve capacity available, for example, because a planned renovation of a grid element cannot be completed on time. The system operator could file an application for a once-only exemption for these grid elements with ACM. ACM grants an exemption for the period that is needed for improving a grid element in such a way that the system operator complies with the law (including any dispensations). When granting exemptions, ACM assesses whether the future creation of reserve capacity in those locations may jeopardize the security of supply, and whether system operators have taken sufficient precautionary measures in those locations to realize an expansion without an exemption or with a lower one as well. In that context, ACM finds it important that investments in the energy transition can continue. ACM published the draft decisions regarding the applications for exemptions on its website in August 2022, and, in November 2022, it decided to grant system operators TenneT and Liander over 50 exemptions.

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