Industry associations, grid operators, and the Ministry of Economic Affairs and Climate Policy will develop the capacity mechanism through technical advisory groups

The Ministry of Economic Affairs and Climate Policy, in collaboration with TenneT and industry organizations, is launching a capacity mechanism design to ensure the future security of supply of the electricity grid. The Ministry of Economic Affairs and Climate Policy (EZK) has provided guidelines to TenneT. The design will explicitly take the role of storage into account. EZK is considering a technology-inclusive design based on the Belgian model. In practice, this clearly presents a good opportunity for storage to play a role in the system. It is important that this technology-inclusive vision is actually enshrined in the final design of the capacity mechanism.

Energy Storage NL will therefore participate in the technical advisory groups. To ensure that these advisory groups are well prepared in collaboration with Holland Solar/NedZero, a working session with members will be held prior to each advisory group meeting.

ESNL Lineup

ESNL advocates for a technology-inclusive design in which all technologies are given a fair chance. We previously wrote a position paper on the Central Capacity Mechanism (CCM). The main conclusions and recommendations were:

• A Technology-Inclusive CCM introduce a system in which batteries, long-term storage, demand response, and other flexibility solutions can compete on an equal footing.
• Recognizing Energy Storage as a Crucial Contribution to Security of Supply, because storage can provide power during times of high demand, thereby reducing the need for fossil fuel-based backup and encouraging renewable generation outside of peak hours.
• Realistic de-rating factors use criteria that are based on the actual contribution of storage during periods of scarcity and do not unnecessarily disadvantage storage.
• Balancing Capacity Fees and Penalties, so that there is an incentive to be available, but the risks do not become so great that they discourage investment. For example, by exempting storage from the repayment obligation.
• Aligning the CCM with congestion management measures, so that storage can help address both security of supply and grid congestion.
• Design a system that fits within the European path toward a COCO₂-free electricity system and prevents fossil fuel lock-ins.

Follow-up Process for Member Work Sessions

During five technical sounding board sessions, industry organizations will work with TenneT to explore the design options in greater depth. To ensure that members’ expertise is fully incorporated, Energy Storage NL will also hold five internal working sessions. The schedule for the working sessions is available to members at download.

Members can sign up for the internal working groups by emailing noa.van.der.valk@fme.nl.