ACM: system operator Liander can experiment with flexible contracts
Summary
- Flexible contracts result in businesses using their connections less during peak hours;
- As a result, the existing grid will be utilized optimally, and more businesses can be connected;
- ACM stimulates these kinds of experiments to accelerate the energy transition.
The Netherlands Authority for Consumers and Markets (ACM) has given system operator Liander permission to experiment with new flexible contracts where Liander makes arrangements with users when transport capacity is or is not available. These contracts with ‘alternative transport rights’ result in large-scale users using their connections less during peak hours. This, in turn, results in a reduced burden on the grid during peak hours, and in more businesses being able to be connected.
Last year, ACM adopted a broad set of measures to ensure that large-scale users are able to utilize the grid in a more flexible manner. Thanks to these measures, all system operators are already allowed to offer different types of alternative transport rights in areas where the grid is overburdened. ACM now gives Liander permission to conduct small-scale experiments with two other forms of alternative transport rights.
Manon Leijten, Member of the Board of ACM, explains: “The overburdened grid is a real problem, but we mustn’t forget that, thanks to ACM’s broad set of measures, often more is possible than market participants think. It’s important that businesses and system operators now take advantage of all opportunities as much as possible. ACM welcomes Liander’s initiative to experiment, through an exemption, with contracts that go even further in terms of flexibility. ACM is open to making system operators’ experiments possible more often in this manner.”
ACM gives Liander permission to experiment with two types of alternative transport rights. These consist of a variable transport right that can also be offered in areas where there is no capacity shortage (or not yet) as well as an energy volume-based transport right. This is a contract where the buyer is given an agreed upon amount of transport capacity each day, but where the system operator decides, on the basis of available capacity, when that transport will take place. Liander wishes to combine these new alternative transport rights with the fixed transport right, because it expects that this will help towards a more efficient utilization of existing grid capacity.
With the exemption, ACM offers Liander the opportunity to explore this in real-world small-scale settings. This real-world experience will also help in drawing up future rules. ACM stimulates these kinds of aexperiments to accelerate the energy transition. By granting an exemption, ACM keeps an eye on the interests of the connected customers and system operators. And, in this way, ACM can monitor what does and does not work well.