ACM launches consultation on additional ways to improve utilization of scarce grid capacity for electricity
The energy transition and the electrification of the industrial sector has led to a significant increase in demand for capacity on the Dutch grid. This is one of the reasons behind the enormous scarcity of grid capacity. System operators must heavily invest in their networks in order to solve the problem of congestion. In that context, ACM, when setting the tariffs, will offer them the necessary financial leeway for such investments. In the meantime, innovative methods are developed for utilizing the current grids more efficiently, for example by offering producers or buyers of electricity a compensation if they help burden the grid less (congestion management). In order to assess whether system operators, users, and other parties involved have other useful ideas for improving utilization of the available grid capacity, ACM has drawn up a consultation document regarding alternative access rights. ACM invites all interested parties to submit their opinions about this document.
Under current legislation, customers are only able to contract ‘firm’ access rights with the system operator. This means that, at any time of the day, customers are able to use this right to access the grid, and also that system operators must ensure that this grid capacity is always available. Alternative access rights, such as flexible non-firm or time-based contracts, work differently. In those cases, for example, customers are able to access the grid during off-peak hours at lower tariffs. In addition, ‘use it or lose it’ can be introduced. This ensures that buyers do not contract more capacity than needed. By using these kinds of instruments, the available capacity on the grid is better utilized, and more market participants gain access to the grid. This contributes towards the energy transition.
Consultation
The legislation (codes) needs to be changed in order to be able to offer these kinds of alternative access rights. Amending and finalizing such rules fall under ACM’s jurisdiction. ACM is a proponent of expanding the opportunities for utilizing the grid better and more efficiently. In addition, ACM finds it important that matters such as customer protection, tariffs, and grid safety are dealt with properly. ACM will take into account the responses to the consultation document in its assessment of the code proposal for flexible access rights, which ACM received on 3 October from the system operators. That is why ACM invites all interested parties to submit their opinions about this consultation document. Opinions can be submitted until November 4 by sending an email to %20consultatie [at] acm [punt] nl (consultatie[at]acm[dot]nl).
Experiments
ACM has observed that some system operators and customers are already experimenting with alternative transmission rights. Given the severity of and the social impact of the grid congestion, ACM temporarily tolerates these experiments. In that context, it is important that participation takes place on a voluntary basis. ACM requests participants to notify ACM of such experiments in advance. On the basis of the responses to the consultation, among other factors, ACM will examine whether a supplementary framework is needed for such experiments.