Netherlands – Key report Policy for large-scale battery systems and off-take network congestion.
This study investigated options for new policies for the deployment of large-scale battery systems to relieve the pressure on the power grid (grid congestion) due to the purchase of electricity.
A lot of flexibility is needed to keep the future sustainable energy system (production and demand for energy) in balance. Large-scale batteries will play an important role in the coming years to balance the fluctuating demand and the fluctuating supply (electricity from sun and wind) at all times. Batteries therefore have an important role in a sustainable, CO2-Free, affordable and reliable energy system.
The problems with grid congestion have increased enormously in recent years, both for generation and for purchasing electricity. The demand for space on the electricity grid is increasing explosively because companies and households are becoming more sustainable and more and more sustainable electricity is being generated in the Netherlands.
Grid congestion means that there is too little capacity on the electricity network locally to meet all electricity supply or demand. In particular, congestion for consumption has major consequences for society, for example for companies or households that want to switch from fossil fuels to electricity. Whether battery systems will reduce or contribute to congestion for purchase depends on the (de)charging strategy and available capacity at times of high grid load (peak times).
CE Delft has carried out a study on behalf of the Ministry of Economic Affairs & Climate Policy and TKI Urban Energy into the impact of the current generation of large-scale battery systems on the reduction of grid congestion. This concerns lithium-ion batteries with a maximum of 4 hours of energy capacity that will be realized until 2030. The main conclusions are as follows:
- Congestion neutral: CE Delft has mapped out options for policy of the central government, the ACM and grid operators with which batteries can act congestion-neutral: it is then ensured that they do not increase the grid load during grid congestion. The policy includes adjustments to congestion management, spatial control and new forms of contract between the network operator and battery operators. Batteries can then contribute to a sustainable energy system without contributing to additional grid congestion.
- At companies: Companies can use batteries if there is grid congestion on their own premises (behind the meter). This allows companies to electrify or grow despite grid congestion.
- Contributing to grid congestion: With the current policy, CE Delft expects that a large part of the new battery projects will increase the peak load through energy balancing until 2030 and thus contribute to grid congestion. The current policy on congestion is congestion management. Within the set financial limits in the regulations, there is too little budget to compensate batteries if they are not allowed to act during moments of decrease congestion. As a result, they will not act congestion-neutral (not increase the peak), but contribute to congestion. Batteries may play a useful role in a sustainable and reliable energy system through energy balancing, but (just like connected companies and homes) they do contribute to grid load and thus grid congestion.
- Solving off-take protection: This study shows that current large-scale batteries are not a reliable, affordable, scalable and feasible solution to solve grid congestion for the purchase of electricity and thus connect additional purchasing customers. The current battery projects cannot technically do this and it is more cost-efficient from a social point of view to make the electricity grid heavier.
Deze studie is gericht op afnamenetcongestie, omdat hiervan de maatschappelijke effecten het grootste zijn. In een vervolgstudie, met verwachte oplevering in september 2023, wordt de impact van grootschalige batterijen voor opweknetcongestie verder onderzocht.
The conclusions for the possible role of the current generation of batteries in generation grid congestion will differ. Among other things, the CE Delft study ‘Tipping point large-scale battery storage’ from 2022 shows that batteries cannot be used profitably until 2030 with only storing and later supplying surpluses of electricity from solar or wind that are now thrown away (curtailed).
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Core Report Policy for large-scale battery systems and offtakes, April 11, 2023
