BlueTerra and Trinomics Study: Secondary Assets Offer Great Potential for Improved Congestion Management

Congestion management does not run into obstacles due to companies’ willingness to participate, but rather due to complexity, uncertainty, and a business case that is not sufficiently compelling. This is evident from Study by BlueTerra and Trinomics, commissioned by the Ministry of Economic Affairs and Climate Policy. The greatest realistic potential for flexibility lies primarily in secondary assets such as batteries, electric water heaters, CHP (combined heat and power) units, and hybrid systems, and to a lesser extent in primary business processes. Companies generally have a good understanding of their own processes, but often have limited insight into flexibility options and contract types.

More momentum is needed to effectively leverage flexibility

Grid operators, ACM, and EZK are working on various initiatives to improve congestion management. The research results show that these efforts have not yet had a sufficient impact on contracting and the actual deployment of flexibility. We are heading in the right direction, but we need to accelerate our efforts. In this regard, four points require extra attention:

• Focus on on secondary assets. The report’s main conclusion is that the most realistic potential for flexibility lies primarily in batteries, electric water heaters, CHP units, and hybrid systems. Energy Storage NL therefore advocates that market participants, grid operators, and governments give policy priority to these assets rather than to primary business processes.
• Improve the business case. Availability fees, co-financing, and appropriate contract terms can reduce risks for companies and make flexibility more attractive. Energy Storage NL also advocates for an efficiency framework in which grid operators can take societal benefits into account alongside direct costs. This is particularly crucial for storage.
• Support aggregation and CSPs. Many companies lack the knowledge or capacity to organize congestion management on their own. Therefore, explore how the national government can encourage the use of Congestion Service Providers (CSPs), for example by temporarily subsidizing consulting fees. This would make participation feasible for more companies.
• Make the Balancing sustainability policy and flexibility Grid operators must procure flexibility in an efficient manner. Based on this principle, the government can develop a policy framework that explicitly takes social and sustainability benefits into account, for example in flex tenders. This will lead to a more transparent balancing of costs, grid impact, and climate goals.

Call for Proposals from Energy Storage NL: Strengthen Collaboration and Unlock Flexibility Through Secondary Assets

Energy Storage NL acknowledges the recommendations from the study and is pleased to support the further development and implementation of the proposed measures to accelerate congestion management at businesses. The use of storage continues to lag behind at many companies and in many industries. To unlock the potential of secondary assets, more intensive collaboration between market participants, grid operators, and the government is needed. This will enable flexibility to contribute more quickly to reducing grid congestion, accelerating the energy transition, and limiting the societal costs of grid reinforcement.