ACM: incentives for location choices are important, but implementation of other measures must be straightened out first
The Netherlands Authority for Consumers and Markets (ACM) will evaluate what the effects are of all other measures for solving the problem of grid congestion before introducing location-based tariffs. That is the conclusion of a preliminary study conducted by ACM.
Over the past few years, ACM has introduced a broad set of measures for solving the problem of grid congestion, and for ensuring that the grid is utilized as efficiently as possible. One such example is the introduction of time-dependent grid tariffs, which act as an incentive for users to use the grid less during peak hours. One measure that is often mentioned is the introduction of location-based grid tariffs. The idea behind such tariffs is that incentives for location choices can lead to lower costs for the grid. ACM will seize every opportunity to solve the problem of grid congestion, and that is why it has conducted a preliminary study into such tariffs.
The study shows that, in theory, location-based grid tariffs can offer advantages, but ACM wishes for system operators to fully implement other measures first. The introduction of these other measures and initiatives has not yet (sufficiently) taken place. System operators say that they need at least five years to adjust their systems to location-based tariffs.
ACM does not rule out that future technological developments or new insights may result in location-based tariffs being introduced in the future. ACM thinks that incentives for location choices are important. The preliminary study shows that designing such location-based tariffs comes with challenges. It is difficult to determine exactly what part of the grid costs is caused by the location of users. The costs also largely depend on the actions of other grid users in the area, and can change over time. That makes determining fair, predictable tariffs complicated. In that context, market participants say that, when choosing a location, other factors also play a role, such as the availability of physical space, the local sales markets, or the ability to obtain a license.
As part of its study, ACM has spoken with Dutch trade association of system operators Netbeheer Nederland, the Association of Netherlands Municipalities (VNG), the Association of Provincial Authorities (IPO), and the Ministry of Climate Policy and Green Growth (KGG) as well as various trade associations of energy producers, energy users, storage companies, and hydrogen producers.