Companies offered off-peak energy contracts at discounted rate to free power grid space

TenneT has found a way to help some of the companies on the waiting list for a connection to the full power grid. The grid operator is offering them a flexible contract, with which it can stifle their use during peak times, at a discounted rate. According to TenneT, there are 9 gigawatts of capacity available during off-peak times, 40 percent of the current national peak demand, RTL Nieuws reports.

The electricity grid is full in almost the entire Netherlands. That means that at peak times, there is no extra capacity available for new connections. That is why thousands of companies are on the waiting list to get a power connection or expansion.

But outside of those peak times, there is still 9.1 gigawatts of capacity available. TenneT therefore developed the Time-bound transport rights (TDTR) contract to use that space. With such a contract, companies are entitled to electricity for 85 percent of the time. During the remaining 15 percent, the grid operator can restrict access when a peak on the power grid is expected. The companies are informed one day in advance, so they can adjust business operations. And in return, they can get electricity at a discount of up to 65 percent.

The Dutch power grid needs to be expanded, and work is being done on that throughout the Netherlands. But in the meantime, this TDTR can be a big part of the solution for companies waiting for a connection, TenneT operational director Maarten Abbenhuis told the broadcaster. “Today, we are taking a huge step in this. We have more than 9 gigawatts to give our customers on the waiting list. That is really a huge amount.”

In the past year, TenneT offered TDTR contracts to several customers to test it out. Next week, the grid operator will start talks with the first companies on a list of applications.