Enexis and Novar sign unique contract on flexible energy supply
Groningen-based developer of large-scale renewable energy Novar is concluding a first so-called Biedplicht contract with grid operator Enexis for its solar farm in northeast Groningen. A unique contract to reduce grid congestion and thus accelerate energy transition.
This contract means that the company temporarily adjusts consumption or supply of energy if there is a threat of excessive congestion (congestion) on the electricity network. For this, the company receives financial compensation. The concluded contract is the first with fixed agreements to offer network space on the GOPACS platform intended for this purpose. This contract contributes to solving the space shortage on Groningen's energy network.
For grid operator Enexis, the concluded contract is a fine example of congestion management, together with the market, says Karin Mathijssen, director of large business at Enexis: "This kind of contract makes us more flexible and prevents overloading on the grid, which is badly needed. And what's unique is that it goes entirely through Repowered, a third party (Congestion Service Provider), which relieves the participating companies. I therefore hope that soon more companies will join this initiative, so that together we can make the energy transition possible faster."
How does such a bid contract work?
If Enexis sees an imminent overload on the local energy network, participating companies are asked to offer space on the network for a fee. They do this by adjusting their electricity production or offtake in such a way as to prevent the upcoming peak.
The companies decide for what amount they want to make this offer. The bid most favorable to the grid operator is accepted. With the contract we agree that the customer always bids if the grid operator asks for it. For this, the company receives a fixed fee, in addition to the flexible fee for adjustment of the offtake or supply. Novar sees such contracts as necessary for the energy transition. Finance director Niels Kruims: "The energy system of the future not only requires sustainable assets. But also the more efficient use of our current energy grid. This is why we have voluntarily made congestion agreements with the grid operators. This mandatory bidding contract is an example of this: it reduces grid congestion and thus makes room on the grid for other users and sustainable generation. CSP Repowered is a kind of traffic controller in this respect."
Director and founder of Repowered - Dirk Jan Masselink explains: "It will become more and more common for agreements to be made between users and grid operators. We then translate the control requests from grid operators into the actual upgrading or adjustment of installations."
