Many questions during online meeting Non-Firm ATO
On Wednesday, September 28, Energy Storage NL organized an online network meeting with the theme: what do time-based contracts (Non-Firm ATO) mean for energy storage? Chiem Ringers of Alliander updated participants on the latest developments by grid operators to better utilize residual capacity on the electricity grid and resolve congestion.
More than 50 participants tuned in for the meeting. It quickly became apparent that there are many questions surrounding Non-Firm contracts. These focused mainly on security of supply, since a Non-Firm ATO does not guarantee capacity, as a Firm contract does.
For example, there was the question of what happens when the grid quickly fills up, with the risk that a storage system under a Non-Firm ATO suddenly becomes insufficient capacity to sustain the business case. The extent to which Non-Firm contracts charge with lower rates plays a big role in this.
It is also necessary to distinguish between storage systems that operate in local congestion markets and thus relieve the grid, versus those that provide commercial services. Finally, Non-Firm contracts should not hinder storage systems that positively adjust the grid because the capacity constraint creates too great a risk to make any more investments. Companies are therefore concerned about the impact of such contracts on the financeability of storage systems.
Network operators are still working out the tariffs and extent of guarantees in consultation with the ACM. They indicate that they want to involve market parties in this, for example by running pilots. Energy Storage NL is involved at various levels in the development of the Non-Firm concept. We will therefore continuously connect our participants in order to represent the voice of the energy storage sector as well as possible. Of course, we will also continue to inform participants about parallel developments, such as the announced research to the possibility of linking Non-Firm contracts to the SDE++.
The presentation by Chiem is available to members and can be requested at info@energystoragenl.nl
