Connection offensive launched: faster better utilization with opportunities for storage

Late last year, the Ministry of KGG launched a new ‘connection offensive’ (formerly called the ‘breakthrough approach’) to achieve faster grid utilization. Together with grid operators and other industry associations, ESNL has worked with much positive energy to develop measures that should lead to shorter queues for off-take capacity before the end of this year. The breakthroughs that developed the connection offensive were announced today via a Chamber letter shared by outgoing minister Hermans. 

Breakthroughs net congestion

About eight breakthroughs have been jointly identified, see below. These breakthroughs should lead to 5-10 GW of unlocked capacity by 2030, and double that by 2035. The breakthroughs are: 

1. Risk appetite: the risk trade-off between reliability, availability and affordability is no longer made solely by grid operators themselves. 
2. Optimization of forecasts: scenarios that network operators calculate with better incorporate flexibility and autonomous demand growth, so less network capacity needs to be reserved. 
3. Review of contract terms: CBC/CSC contract terms are mutually improved so that fewer negotiations have to break down. 
4. Understanding needs flex: more dynamic understanding of location- and time-specific flexibility needs should help connected parties make investment decisions. 
5. Regional tenders for flexible deployment: there will be at least 4 regional tenders for flexibility by 2026 that will quickly free up capacity. 
6. Standardizing flex: large-scale flexible assets such as charging infrastructure and batteries get standard sets of agreements for congestion-mitigating deployment. 
7. Individual top-50 appointments: the largest electricity consumers will be approached to make binding agreements to offer flexibility. 
8. Letting go of financial limit as a guideline: grid operators will buy flexibility above the financial limit (€1.02/MWh) in the coming years. 

What does this mean for the storage industry?

ESNL welcomes the new impetus for better grid utilization and sees good opportunities in this for energy storage. ESNL sees the collective revision of (standard) contract conditions for congestion management contracts as an important accelerator to make congestion mitigation workable, and is therefore also closely involved in the development of breakthroughs 3 and 6. In addition, the further development of ‘flextenders’ offers opportunities for new revenue models (#5), and the wider procurement of flexibility for congestion management (#8) ensures that energy storage can contribute more often to congestion mitigation. Additionally, ESNL advocates for a clear national policy framework that enables local competent authority to quickly and effectively assess where, and under what conditions, congestion easers will be licensed. 

How to move forward?

Each breakthrough will be further developed and implemented in working groups in the coming weeks. ESNL is actively involved in this and will continue to keep its members informed. Members are welcome to share relevant information and ideas so that discussions can be as focused as possible.