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Regulatory Authority ACM to Allow Grid Operators to Prioritize Projects of “Great Public Interest

The regulatory authority ACM aims to enable grid operators to prioritize applications that serve a “great public interest” in the queue. The ACM defines “great public interest” as parties that can contribute to congestion mitigation, safety, or sustainability. Recently, the ACM published a draft code decision to this effect.

Currently, grid operators are required to handle all applications in the order of their arrival, known as first-come-first-serve. This approach is currently resulting in long queues. The ACM believes it is beneficial to prioritize certain applications due to the significant importance these projects hold for society and the energy transition.

The ACM distinguishes four categories in this context. The first category, with the highest priority, includes “congestion mitigators,” defined as “a party that the grid operator, based on a binding contract between the grid operator and the respective party, determines that granting transport capacity to this party will make transport capacity available on the grid.” The other categories include parties serving safety interests (such as police, emergency services, etc.), those providing basic needs (housing, education, etc.), and those contributing to sustainability (both production and demand).

Based on the draft code decision, Energy Storage NL sees opportunities for energy storage projects to be connected more quickly. However, it is important for these projects to demonstrate that they contribute to the reduction of grid congestion. To determine this, ESNL expects that criteria will be set for desired locations and connection conditions for energy storage. ESNL emphasizes the need to provide sufficient certainty to market parties to make these energy storage projects financially viable. ESNL is discussing this with both the ACM and grid operators.