Possible solutions for grid congestion
Is your business being affected by grid congestion? For example, you cannot get a new or upgraded connection when you want to set up, expand, or relocate your business? Or you are not always able to feed electricity you have generated back into the grid? Check these possible solutions to the problem.
In many areas in the Netherlands the power grid is becoming overloaded. This is called grid congestion. This occurs when there is not enough capacity on the grid to transmit all the electricity we want to use or generate. Read more about grid congestion in the Netherlands.
What can business owners do?
The following measures to address the problem are being used in grid congestion areas.
With energy management you adjust the energy consumption of your appliances at the moment you use them. You do this using an energy management software system (EMS). This will, for example, mean you charge your charging stations when there is a lot of solar energy available. The system can also temporarily switch off processes that use a lot of energy. This reduces peak demand on the grid.
EMS software gives insight into the energy flows and the costs of your building. With that knowledge you can manage your energy needs better. This will help save energy and costs.
Read more about energy management systems (in Dutch).
When you generate electricity, you can store any surplus in a battery energy storage system (BESS). You can then use it at a later moment. This applies especially to electricity generated by your own solar panels or wind turbines.
Make an overview of your energy consumption and generation. Then see how to use your energy supply in a smarter way. And how a battery can contribute. When buying a battery, you can make use of the Energy Investment Allowance (EIA). Then you can offset 40% of your investments against your personal or corporate income tax.
Read more about battery energy storage (in Dutch).
Electricity conversion means converting surplus electricity, for example from wind turbines and solar panels, to other forms of energy, such as heat or hydrogen. This makes your business less dependent on the electricity grid.
You do need to have enough room to convert electricity into heat or hydrogen. And you, or buildings nearby, must be able to use this converted energy. Check with your municipality whether a permit is required for electricity conversion. This depends on the location, the amount of energy you want to convert, and the effect on the environment.
Read more about energy conversion (in Dutch).
With a capacity limiting contract, you flexibly adjust your electricity consumption or delivery based on the available capacity on the grid. Your energy provider will financially compensate you when you reduce your energy consumption when demand is at a peak. Or if you agree on the times when you will deliver energy to the grid.
You can conclude a capacity limiting contract on your own or together with other entrepreneurs through the network operator. There are various contract forms for consuming and for delivering energy.
Read more about the capacity limiting contract (in Dutch).
With so called cable pooling, different energy sources share one grid connection. This usually involves at least 2 sources that produce electricity, such as solar panels and wind turbines.
These energy sources may have different owners. For example, a neighbouring company sets up solar panels near your wind turbine. You can then agree they connect their cable to your grid connection. This way, you make better use of the available grid capacity when it is sunny or windy. Sharing a single cable also avoids extra connection costs and double grid management charges.
Read more about cable pooling (in Dutch).
With a direct line, you supply your generated electricity directly to a large user in your neighbourhood. You do not use the general electricity grid. Your customer uses your generated electricity directly. Do make sure that the energy needs of the customer match the supply you can generate.
The local infrastructure must make it possible to set up a direct line. If you have to run your cable under a river or a busy road, for example, it is sometimes not possible to have a direct line. Ask your municipality whether a direct line requires a permit. This depends on the location and size of the direct line, and the effect on the environment.
Read more about supplying electricity to a business nearby (in Dutch).
Within an energy hub, a group of businesses have a group contract with the grid operator. As a group, you then manage the generation and consumption of energy yourself. This way, you make better use of the available capacity together: supply and demand are better matched.
This allows you to coordinate energy generation, transportation, storage, conversion, and consumption.
Energy hubs come in different sizes, often develop in stages, and can add new activities at a later stage. Consider, for example, investing in generation facilities or storage. The participants in an energy hub make agreements with each other about how to invest and operate.
Read more about energy hubs (in Dutch).
Not only for large companies
Some of the solutions in this article are only suitable for larger users. But there may be ways you can collaborate with other businesses in your area to deal with grid congestion. By joining together, smaller businesses are able to work with larger companies nearby. Are you a member of a business park association? Then perhaps you can come up with a grid congestion plan together.