Importing cheap electricity becomes easier
It becomes possible to transmit more electricity over the cable connections on the borders with Germany and Belgium. Utilization of the capacity of existing electricity connections will be improved. This has been revealed by the draft decision released by the Netherlands Authority for Consumer and Markets (ACM). Improved utilization offers consumers and businesses savings of approximately EUR 80 million per year.
Limited capacity
If, for example, strong winds are blowing in Germany or if the sun is shining brightly there, the price of electricity in Germany will be low. Importing that cheap electricity thus offers benefits to the Netherlands. It would result in lower energy bills of consumers and businesses. The problem however is that available transmission capacity between the Netherlands and Germany is limited. If this were higher, the Netherlands would be able to import more. The price of electricity could then go down.
Savings of EUR 80 million
Thanks to the so-called Flow-based market coupling, network operators are able to offer more cross-border transmission capacity such as between the Netherlands and Germany. Flow-based market coupling is a more advanced method for calculating available transmission capacity, and results in an improved utilization of the existing electricity network than is currently the case. This is achieved in part because of the close collaboration between the transmission system operators, the energy exchanges, and the energy regulators in the Netherlands, Belgium, France, Germany and Luxembourg. Flow-based market coupling will be simultaneously introduced in these five countries. Based on the test results over 2013, Flow-based market coupling is projected to generate savings of approximately EUR 80 million per year for consumers and businesses in the Netherlands. Flow-based market coupling is expected to be launched this December.
Number of connections will also be expanded
In addition to improved utilization of the connections, ACM recently called on TenneT, the Dutch transmission system operator for electricity, to come up with proposals to expand the number of connections. That, too, helps increase cross-border transmission capacity.