Grid congestion is not just a lack of cables

The Dutch power grid is grinding to a halt. Not because of a lack of electricity, in fact there is sometimes too much electricity, but because of an increasing lack of coordination between demand, infrastructure, and regulations. This is affecting the house building sector, ongoing sustainability, and economic growth. However, energy law experts Lea Diestelmeier and Jamie Behrendt do not think that the answer is simply to lay more cables. We also need smarter ways of using the existing capacity, new legislation and regulations, and changes in the way households and businesses consume electricity.

^{Text: Jaap Ploeger, UG Corporate Communication | Photos: Henk Veenstra}

The power grid is not full

According to Lea Diestelmeier, the first step is to put this into perspective: grid congestion is often described as a shortage of capacity on the electricity grid, but in her view the reality is more nuanced. The available capacity is not the only problem; we also need to look at how we distribute and use this capacity.

‘There is still capacity available on the grid. The main problem is how to coordinate it,’ she says. But she admits that the consequences could be huge. ‘The situation is fairly serious. There are already waiting lists to build houses and industrial parks.’ This is restricting project developers, housing developers, and businesses in their wish to expand.

According to her, for many years, the Netherlands assumed that its power grid would always be able to meet demand. There would be power for anyone, whenever they need it. ‘We’re talking about the copper plate scenario: the idea that power can be supplied anywhere, without constraints. This system and the underlying regulations are based on the assumption that all power that reaches the grid ends up where it is needed. However, this is not the physical reality. And that’s the crux of the problem we’re now facing.’

Difference between contracted capacity and the situation in practice

In Diestelmeier’s opinion, a large part of the problem relates to the way that the capacity is contracted. Businesses and houses are allocated capacity as if they use it constantly. This is rarely the case in practice. ‘Power grid managers must guarantee 100% capacity, 24 hours per day. But grid users never actually consume this 100% capacity.’ So a discrepancy has developed between contractual capacity and actual usage.

Jamie Behrendt stresses that this is particularly relevant to energy-intensive businesses. Whereas households have standard capacity, businesses must estimate how much capacity they need. According to her, this leads to a system in which capacity is contracted, despite the full volume never actually being used in practice. ‘It really is a question of coordination,’ she says. ‘Capacity is sometimes available, but it can’t be redistributed because it has already been allocated by contract.’ To her mind, this shifts the debate from a matter of investing in new infrastructure to finding smarter ways of using the capacity that is already available.

New rules from 1 July

An important change in the regulations is set to be introduced. On 1 July, changes will be made to the system used to prioritize connections. This is the ‘priority framework’, set up by the Dutch Authority for Consumers and Markets (ACM). The new framework is designed to clarify how scarce capacity is distributed, and how to deal with the long waiting lists for connections. But it is also becoming increasingly important for businesses to cooperate with each other, as simply setting priorities will not solve the capacity problem and the government is passing responsibility to businesses.

Sharing connections

Behrendt thinks that shared connections (often referred to as cable pooling), and local cooperation will become important instruments: ‘An industrial park where businesses have differing consumption patterns is a good example. A business that operates mainly during the day can share capacity with a business that uses a lot of power at night, for example. Businesses can make agreements about how each of them uses the capacity available from their connection,’ Behrendt explains. This will enable businesses to use the available capacity more efficiently.

The government and electricity grid managers will allow the parties to make their own agreements, which will be laid down in a contract under private law. The legal experts see not only technical challenges, but also, and more importantly, legal and organizational problems. ‘You must agree: when, how, and how much power you will use. In addition, businesses must be willing to be flexible: “I’m happy to use less, or perhaps at less popular times, but I expect it to be cheaper.” These are complex considerations.’ Plenty to keep the legal experts occupied during the years to come.

From a technical to a social problem

Ultimately, they see grid congestion as more than an infrastructure problem. ‘We’ve become too comfortable,’ says Diestelmeier, commenting on the way people in the Netherlands view energy. ‘Power has always been available. People barely give a thought to how the system behind the plug socket works.’ This privileged position is about to change. According to the legal experts, the energy transition does only mean new regulations and technology, but also a different approach to how we use power.

‘We can think up all kinds of nice regulations, frameworks, and instruments,’ says Behrendt, ‘but if they aren’t accepted and put to use, nothing will change.’ So there is no single solution to grid congestion. It requires a combination of measures, including expansions to the infrastructure, smarter use of existing capacity, new legal agreements, and changes in behaviour.

Why the energy transition is changing the system and behaviour

Our ultimate aim as a population is to generate and use more sustainable energy. This is long overdue. As a result, the time at which electricity is available is shifting. ‘You really need to use wind and solar power directly when it’s generated,’ says Diestelmeier. Although storage can help, she adds that it does not entirely solve the problem: ‘A battery has limited capacity too.’

Behrendt is keen to stress the importance of steering demand: ‘Some businesses are already adapting their consumption in line with the available capacity. We are heading away from a demand-based system towards a production-based system, in which usage is coordinated with times that power is readily available.’ This will inevitably affect daily routines, business, processes, and economic choices. Diestelmeier concludes: ‘It will have an enormous impact on our consumption. On how we live, how we travel, how we eat, and when we cook. Everything.’

More information

• Lea Diestelmeier
• Jamie Behrendt