ACM: clear choices are needed for the future of the electricity system
The Netherlands has, at the moment, one of the most reliable electricity systems in the world. So far, there has always been sufficient supply to meet demand for electricity at all times. In order to ensure that the Netherlands achieves the climate goals, more and more electricity is generated using wind and solar. Since wind and solar are not always sufficiently available, other sustainable sources must be available during those periods. That is why carefully considered decisions need to be made regarding the future of the Dutch electricity system. This is argued by the Netherlands Authority for Consumers and Markets (ACM) in a paper about resource adequacy, which was published today.
It is important that, during periods without solar and wind, sufficient electricity is available from other sustainable sources, for example, power plants without CO2 emissions, energy storage, supply from other countries, or agreements with large-scale users that they will temporarily consume less power during those periods. The Netherlands is not expected to be “without power” anytime soon, but it is important to have a public debate about the desired level of resource adequacy. Does sufficient electricity always need to be available for charging electric vehicles at any point during the day? Do we find it acceptable that, several times a year, businesses or even households go an hour without power? And what are we willing to pay for preventing temporary shortages?
Manon Leijten, Member of the Board of ACM, says: “The major shifts in the Dutch energy system raise the question what level of resource adequacy we as a society want, how do we organize this, and what we are willing to pay for that. With this paper, ACM contributes to that debate.”
Various solutions are possible for keeping the power supply reliable. One key role in that context is played by flexibility in the system. This can be realized, for example, in the form of energy storage or by agreeing with businesses that consume a lot of power that they will adjust their consumption, if such is necessary. This flexibility is not just important for resource adequacy, but it also helps in solving grid congestion.
In addition to introducing more flexibility, the Netherlands can also opt for a capacity mechanism, where energy producers, storage companies, or flexible users get paid in advance to keep capacity available. Such a mechanism already exists in several other European countries. That offers more certainty, but also costs money, which ultimately has to be paid by all electricity users. ACM emphasizes that a capacity mechanism has its pros and cons, and must, therefore, be considered carefully.
See also
- 26-03-2025 Resource adequacy and the possible role and design of capacity mechanisms (in Dutch)