Grid operator TenneT signs battery deal with large user: discount for off-peak power use

Grid operator TenneT has concluded an initial connection contract for a large battery that should make smarter use of the full electricity grid. This is a time-bound contract with a large battery from the company GIGA Store, which mainly uses the power grid outside of peak times in exchange for lower transport costs. According to Minister Sophie Hermans of Climate and Green Growth, the agreement is “a milestone,” and she hopes for a breakthrough that will lead to more such contracts.

The large battery from GIGA Storage can temporarily store excess electricity, for example, on sunny days with a lot of wind. On days when little solar and wind energy is generated, the stored electricity can be fed into the electricity grid to prevent shortages. This makes the purchase of green energy less unpredictable. GIGA Storage is allowed to use the connection for the battery that will be installed in Delfzijl 85 percent of the time. This type of contract can be advantageous for large users. They can receive a discount of up to 65 percent on transport costs.

The battery “only charges outside rush hour,” TenneT CEO Manon van Beek explained, and will thus “make better use of the available sustainable electricity.” The project will also be a matter of testing to what extent such a battery can actually contribute to a solution.

The electricity grid is very full, especially at times when a lot of electricity is produced or consumed. This creates congestion, in fact a kind of traffic jam in the cables. The contract between TenneT and GIGA Sotrage is the first of its kind. The intention is that contracts should be concluded more often so that the grid can be used more flexibly.

Thanks to this new type of contract and good cooperation, it will be possible to optimally use the space on the electricity grid that is still available outside the ‘peak.’ And also to use sustainable electricity when there is less sun and wind,” according to Minister Hermans. “I hope that this is a breakthrough and other companies can do so will consider a flexible contract.”

TenneT boss Van Beek calls on companies to also consider such a flexible contract.