More-affordable transmission agreements for off-peak hours promote more efficient utilization of the grid
The Netherlands Authority for Consumers and Markets (ACM) makes it possible for system operators to offer contracts without firm transmission capacity (in the Netherlands, also referred to as non-firm alternative transmission agreements, alternatively known as non-firm access agreements). These types of contracts can be interesting for businesses that do not constantly need to use their connections at full capacity, for instance because they are able to shut down their equipment temporarily, and also for battery storage systems, electrolysers, or charging stations for electric buses. Since these connections cannot always be used at full capacity, users get a discount on their transmission tariffs.
Until now, system operators had only been able to offer transmission contracts with firm transmission rights. This means that buyers are able to use these rights to transmission capacity at any time of the day, and it also means that system operators must ensure that this transmission capacity is available at all times. In many places in the Netherlands, the grid is so congested that there is no more room for new connections with guaranteed rights to transmission capacity. In these areas, the grid is at capacity during peak hours, but at other times, there is still sufficient transmission capacity. On the basis of today’s code decision on non-firm access agreements, system operators are able to offer contracts where the connections can only be used if sufficient transmission capacity is available.
ACM works together with local governments, system operators, and other market participants in the National Grid Congestion Action Program (in Dutch: Landelijk Actieprogramma Netcongestie, or LAN) aimed at promoting a more efficient utilization of the grid. Offering contracts with alternative transmission rights is part of that effort. From 1 February 2024, it will be possible for system operators to offer contracts without firm transmission capacity in areas where the grid is at capacity (also called congestion areas). From 1 February 2025, system operators will be required to offer such contracts. This is a first step in the creation of new types of contracts within the broader context of tackling grid congestion. Today, ACM also publishes a proposal of the Dutch trade association of system operators Netbeheer Nederland to offer contracts with alternative transmission rights in areas where there is still sufficient transmission capacity available.