ACM: System operators can continue to use standard contracts for wind and solar parks
System operators can continue to offer standard compensations for congestion management for new wind and solar parks. This is one of the conclusions of an evaluation by the Netherlands Authority for Consumers and Markets (ACM) of the effects of these standard compensations. Standard contracts and thereto-related conditions (financial or otherwise) help in making it easier for system operators and sustainable-energy producers to make arrangements regarding congestion management, so that grid capacity is utilized as efficiently as possible.
In many places in the Netherlands, the grid is overloaded. This has led to waiting lists for access to the grid. To eliminate these waiting lists, system operators must upgrade the grids, and system operators and users must see to it that existing grids are utilized as efficiently as possible. Congestion management means that wind and solar farms carry out temporary interruptions (partial or complete) in exchange for a compensation, if sufficient transport capacity is lacking at peak moments. If system operators were to make separate arrangements with each individual energy producer about the conditions (financial or otherwise) of congestion management, it would take up a lot of time. Thanks to standard compensations, this process is easier and quicker.
In 2024, ACM allowed system operators to experiment with standard compensations for congestion management for two years. System operators as well as Dutch trade associations Holland Solar and Energie Samen have indicated that they would like to continue this approach under the same preconditions. ACM supports this.
Results of the evaluation
ACM has evaluated the effects of the standard compensations. The evaluation reveals that standard compensations have made discussions with energy producers on the waiting list easier and faster, and that more real-world experience has been gained with what a reasonable compensation for flexibility is. The number of signed contracts regarding congestion management, however, is still low. One of the reasons is that system operators still need to take steps with regard to the implementation of congestion management by wind and solar parks. Also, most smaller parks cannot be directed by system operators yet. That is necessary for the ability to interrupt (partially or completely) them during peak moments. System operators and market participants have indicated that they will continue to work on this together.
ACM emphasizes that opting for a standard compensation remains on a voluntary basis. This means that producers of solar and wind energy are also able to make individual arrangements with system operators. ACM calls on market participants to report any obstacles they encounter. If a complaint has been filed, ACM may still decide to investigate the initiative in greater detail at a later time.