Grid operators in the Netherlands are being given two years by the Dutch Authority for Consumers & Markets (ACM) to experiment with standard congestion management contracts for new wind and solar farms.
The electricity grid is congested in many places in the Netherlands. This creates queues for access to the grid, which in turn slows down the energy transition. To solve these queues, grid operators must reinforce the grid and both grid operators and users must ensure that existing grid is used as efficiently as possible. By applying congestion management, grid operators can instruct wind and solar farms to temporarily (partially) switch off if there is not enough transport capacity at peak times.
Faster access to the grid
However, congestion management contracts are still laborious to establish. For example, there is not yet a clear picture of what compensation for flexibility is reasonable. If network operators have to make separate agreements with each new operator about the (financial) conditions of congestion management, that takes a lot of time. Standard contracts will make it easier for network operators and producers of renewable energy to reach agreements on congestion management.
With producers soon using the standard contracts with a price formula and capped compensation for temporarily shutting down production, those lengthy negotiations are no longer necessary. This will allow new wind and solar farms to gain faster access to the grid.
Opting for the standard contract is voluntary. Producers who do not participate in the standard contract can still make individual agreements with the grid operator. Grid operators also guarantee to keep capacity available on the grid for these producers. No later than after 2 years, ACM will evaluate the effects of these standard contracts.
The industry associations Holland Solar and Energie Samen support this intention of the grid operators. Source: ACM
