ACM stimulates system operators to utilize existing grids more efficiently
With its code decision on congestion management, the Netherlands Authority for Consumers and Markets (ACM) enables system operators to use existing grids more efficiently. This will free up more capacity on the grid, and there will be no need to wait with connecting, for example, wind and solar farms until all upgrades to the grid have been completed.
Manon Leijten, Member of the Board of ACM, explains: “The problem of transmission capacity scarcity is getting more and more dire. And in order to fix this problem, the grid must be upgraded in many places. As it could take years before all the necessary upgrades will have been completed, we must, in the meantime, do everything we can to utilize the existing grids as efficiently as possible. In this way, all of us can ensure that the energy transition can take place faster.”
With industry becoming more sustainable, more and more electricity is consumed. And in residential areas too, more and more residents have solar panels, heat pumps, and electric cars. In order to meet all of that demand for sustainable energy, more and more solar parks and wind farms, too, need to be connected to the grid. In many places, system operators, today, are already unable to meet the high demand for transmission capacity. Because of staff shortages and protracted licensing procedures, among other reasons, not all of the necessary upgrades can be completed on time. ACM’s assessment of the investment plans of system operators has revealed that the transmission capacity scarcity will last for at least five to ten years. That is why ACM finds it important that system operators utilize the existing capacity as efficiently as possible, for example, by making more use of congestion management.
Congestion management means that electricity suppliers and buyers help avoid overburdening the grid by temporarily reducing electricity consumption or injection into the grid when there is less capacity during peak periods. In such cases, suppliers and buyers will receive compensations from the system operators. It has been laid down in the code decision that, within the financial and technical boundaries that have been set, system operators must always apply congestion management. In 2021, ACM published the draft version of the code decision, and received many responses. ACM used these responses to improve the code decision further. System operators have six months to make the necessary preparations in order for them to be able to apply congestion management on the basis of the new rules this year already.
See also
- 25-5-2022 Code decision on congestion management (in Dutch)