The Netherlands is fully engaged in developing sustainable energy solutions. And with success. More and more electric cars are being driven and more and more buildings are being fitted with solar panels. However, this rapid transition also poses new challenges. One of them is grid congestion. Chances are, as a business, you've already experienced the effects of grid congestion. What do we do when demand for electricity exceeds grid capacity at certain times? Or when we actually produce more than can be transmitted? What challenges does this pose and how do we solve them? In this blog, we dive in and discuss ENTRNCE's role in solving grid congestion - in both the short- and long-term.
What is grid congestion?
Net congestion occurs when the power grid becomes overloaded. The existing infrastructure - the cables and transformers - are then unable to transport all the electricity safely. In short: when the transmission demand for electricity at any given time exceeds what the grid can physically handle. This can lead, for example, to voltage and capacity problems that can result in failure of (parts of) the grid.
The causes of grid congestion
The challenges surrounding grid congestion are becoming increasingly pressing. This is because we are demanding more and more from our current power grid, which is therefore increasingly running up against its own technical limits. One of the causes is a significant change in the way our power grid is used.
From a top-down to a bottom-up power grid
Where electricity was previously only generated by power producers and transported top-down to individual households and businesses through big thick cables, today households and businesses also increasingly act as producers themselves. Our energy network is thus increasingly being deployed bottom-up. Our physical infrastructure is just not set up for this (yet):
Businesses and households, with thinly tapped cables, are mostly the end point of our infrastructure. The amount of power that households and businesses are generating (through e.g. solar panels) and consuming (with e.g. charging electric vehicles) by new means is causing the technical limits of the power grid to be reached faster. Moreover, our society is rapidly electrifying: there are more and more gasless homes and electric cars. Also - due to the increasing number of solar panels - more and more electricity is being generated by end users themselves.
Peak times
So more and more demands are being placed on our electricity grid. The problems arise mainly at peak times: electric cars are charged after coming home from work and also people often cook at the same time. Moreover, when the sun shines, all the solar panels in a street generate electricity at the same time. At these peak times, the technical limits of the power grid are increasingly being reached.
The consequences of grid congestion
For businesses, grid congestion can lead to challenges such as:
- Impact on day-to-day operations, for example production processes, and strategic planning such as expansions;
- Delaying sustainability ambitions and projects, e.g. installation of rooftop solar panels, due to insufficient grid capacity to transmit the excess electricity;
- Reconsideration of site selection based on grid availability and reliability;
Solutions for grid congestion
A solution is often immediately thought of increasing the weight of the grid, for example by using thicker cables and installing more transformers. However, expansion and reinforcement is difficult because of the long lead times and scarcity of technically trained personnel. Therefore, it is important that we also look at solution to make better use of the existing infrastructure. Let's see how the ENTRNCE platform makes a valuable contribution to this.
How ENTRNCE brings innovation to the long-term approach to preventing grid congestion
At ENTRNCE, we take a crucial role in the long-term approach to grid congestion by facilitating local electricity exchanges. We facilitate producers and consumers to trade electricity directly with each other as much as possible at the local level.
Because this is only possible if it takes place simultaneously, the load on the higher electricity grid is limited and grid reinforcement can be postponed or possibly even (partially) deferred. For grid operators, this translates into a reduction in transmission needs and costs due to more efficient use of existing grid capacity. This is how ENTRNCE contributes to a sustainable, future-proof energy market in which your organization can continue to grow.
ENTRNCE's contribution in addressing existing congestion problems
In addition to this long-term vision, ENTRNCE also contributes solutions to acute problems. This is done by linking the ENTRNCE platform to the GOPACS platform, the means by which grid operators seek market-based solutions to existing congestion areas. Wholesale electricity markets play an important role in GOPACS, as potential participants can use that route, among others, to make their availability known to grid operators to contribute to solving bottlenecks. Thanks to the connection of the ENTRNCE trading platform with the wholesale markets, end users of ENTRNCE can not only arrange their energy purchases and sales, but also directly contribute to solving acute congestion problems. For you as a company or grid operator, this means a direct, measurable solution, with ENTRNCE enabling you to make your own contribution to relieving the electricity grid.
Conclusion
Net congestion is a challenging issue that requires a multi-layered approach. While facing current challenges, we must also look forward and explore innovative solutions beyond traditional methods. ENTRNCE offers a path forward by facilitating local electricity exchanges and contributing to reducing grid congestion.
Let's work together to ensure the future of our electricity grid and grow your organization within a stable, sustainable electricity market. Schedule your strategy talk now and discover how ENTRNCE can support your organization in navigating the challenges of grid congestion.
