Acceleration of energy storage at great risk due to increased transmission rates
TenneT announced today that transmission tariffs are likely to be raised significantly again. In 2024, tariffs are expected to increase by approximately 80%-90% (high voltage, HS) and 120%-135% (extra-high voltage, EHS). Because energy storage, such as batteries, are still seen as "consumers," the increase in transmission tariffs will have a negative knock-on effect on the business case for energy storage, thus putting the acceleration of energy storage in the Netherlands at great risk, according to Energy Storage NL.
Rise to a maximum of 90% and 135%
TenneT states that the increase in transmission tariffs results from the fact that energy prices have risen significantly since 2021. This price increase is reflected in TenneT's transmission tariffs. In 2023 this already led to an increase of 51% for HS tariffs and 84% for EHS tariffs. So in 2024 these tariffs are expected to rise again by about 80%-90% for HS tariffs and 120%-135% for EHS tariffs compared to 2023.
Rates from 2025 onward are not yet easy to estimate. However, tariffs will develop less extremely than in 2023 and 2024. If energy and power purchase costs (E&V) remain the same, transmission tariffs will probably continue to rise (about 15% in 2025 and 2026). If electricity prices start to rise again, further growth in transmission tariffs is to be expected, although the growth in percentage terms is expected to be substantially smaller than in 2023 and 2024. If electricity prices fall sharply, tariffs are expected to fall again. However, developments in the electricity market are currently so uncertain that no further statements can yet be made about tariffs for 2025 and 2026.
Fears of delay in energy storage in the Netherlands
Energy Storage NL fears a slowdown in the number of energy storage projects in the Netherlands in the short term. The existing transmission tariffs are already making the business case for energy storage difficult to calculate. Raising them further by up to 90% for high voltage and up to 135% for additional high voltage in 2024 is expected to make energy storage projects no longer commercially viable.
Recently, both Ben Voorhorst, special coordinator for grid congestion, and the ACM have called for an adjustment of transmission tariffs for energy storage. Energy Storage NL is therefore asking the government, grid operators and the ACM to hurry with a different assessment of energy storage in the transmission tariff system. Especially since, according to ESNL, EU Regulation 2019/943 and Directive 2019/944 show that energy storage should not be assessed as 'consumers'. These provisions have direct effect for all member states.
Further raising transmission tariffs in the Netherlands will only increase the uneven playing field with surrounding countries, such as Germany, Belgium and the UK, which now have a (partial) exemption on transmission tariffs. This will lead to relocation of energy storage projects abroad, this while TenneT just recently announced it needs 10 GW of batteries in the Netherlands to keep the electricity grid in balance. TenneT's increase in transmission tariffs for energy storage, announced today, is therefore incompatible with its own storage needs, according to Energy Storage NL.
