The energy transition has been held up for some time by the increasing tightness of the electricity grid. Large solar and wind farms cannot (or cannot sufficiently) feed in, and grid operators can no longer supply new businesses with enough electricity. The electricity grid is filling up and more electricity simply cannot be transmitted, grid operators say. But can grid operators just refuse that connection how can I as business owner still ensure sufficient electricity at the right time?
The transmission obligation from the Electricity Act
The Electricity Act (hereinafter: E Act) imposes various obligations on grid operators. For example, grid operators are obliged to provide anyone who requests one with a connection to the grid they manage (the obligation to connect). Under Article 24 of the E-Act, grid operators also have a duty to provide the transmission of electricity to and from the connection point (the transmission duty). However, the transmission obligation does not apply when the grid operator "does not reasonably have capacity available. This is referred to as congestion. Thus, refusing a request for transmission capacity is sometimes allowed. With congestion, a distinction is made between contractual congestion and physical congestion.
Contractual congestion occurs when the maximum grid capacity is contractually allocated to all customers. In practice, however, customers only partially use their contracted capacity, so that the capacity reserved for that contracted capacity is much higher than actual consumption. In fact, there is then physical capacity left over. Contractual congestion is therefore also insufficient reason to refuse transport. Physical congestion refers to the actual use of the transmission grid. When the limit of the maximum physical transport capacity is actually almost exceeded, then transport can be refused by the network operators.
Congestion Management
Expanding the existing grid capacity may take years. The grid operators are therefore looking at ways to use the existing grid capacity more efficiently and reduce the pressure on the electricity grid. This is called congestion management. Network operators can then ask customers to use less electricity (temporarily) and the customers receive compensation in exchange. Connected parties with a connection of 1 MW or larger can even be required to participate in congestion management.
The above congestion management ground rules were laid down in the "congestion management code decision" of the Authority Consumer & Market (hereafter ACM), and took effect on November 25, 2022. The code decision states that grid operators are obliged to apply congestion management in the event of imminent tightness on the electricity grid, within the financial and technical limits specified in the decision. New rules are expected in the first half of 2024 that will require less leeway to be granted to large consumers.
Transportation denied, how to proceed?
As noted above, a grid operator may refuse to transmit electricity only when capacity is not reasonably available. If the grid operator refuses the transmission of electricity for your development, the first thing to do is to request the justification for that decision from the grid operator. This is because the grid operator must make it plausible that it has exhausted all (congestion) measures it can take before refusing the transmission. In the absence of good substantiation, the system operator will still have to proceed with the transmission.
Nevertheless, due to increasing tightness on the grid, it will happen more often in the future that the grid operator refuses the transport (partially). If you disagree with that refusal, you can request the ACM to mediate and settle the dispute. If even the dispute resolution does not lead to the desired solution with the grid operator, an appeal can be lodged with the Trade and Industry Appeals Tribunal. A request can also be made to the civil court (usually in summary proceedings) to order the grid operator to provide the requested transmission. However, it is not necessary in all cases to formalize a dispute in this way.
Alternatives in the event of transportation shortages
In addition to congestion management, grid operators are also looking at other options for reducing pressure on the electricity grid. In the case of new developments or limited capacity during peak hours, the following alternatives are particularly interesting.
1. Battery storage
Many developments (residential areas, distribution or shopping centers and business parks) are now equipped with solar panels or wind turbines. These solar panels and wind turbines sometimes generate more electricity than is consumed at that time. Due to the limited space on the electricity grid, the surplus electricity sometimes cannot be delivered back to the grid and must be bought back at a later time. Some companies may be unable to get electricity supplied at all due to an overload on the grid. One (part) of the problem could be solved by using battery storage. The surplus of generated power then goes to the battery (and not back to the grid) and can be used when the electricity is actually needed. The home-generated power is also cheaper than the power taken from the grid.
In addition, several cities are explicitly considering the installation of large batteries that can be used as a kind of "energy hub. The use of those "partial batteries" not only provides space for various business owners, but also for residential construction, for example.
2. Cable pooling and curtailment (particularly in feed-in).
In developments of solar and wind farms, cable pooling may also be a possible solution. Initiators of solar and wind farms located close to each other can share one connection, because when the sun shines, the wind does not usually blow, and vice versa. According to the grid operator, a shared connection hardly requires more transport capacity from the electricity grid. In this way, initiators can save substantially on connection costs, and the existing electricity grid can be used much more efficiently. With curtailment, the production peak of generation facilities is capped, so that the highest peaks do not have to be taken into account when allocating capacity.
3. Other alternatives
Especially for larger developments, there are numerous other solutions available, and these solutions are developing at a rapid pace. For example, an "off grid" solution in which a development is as self-sufficient as possible and makes only (very) limited use of the grid (also called: virtual power grid). Also, companies can supply electricity to each other in close proximity, namely when one has too much and the other too little (also called: virtual power plant'). Combinations between the various systems are also conceivable.
