First battery developer closes ATR-85 deal
ESNL participant Giga Storage yesterday concluded the first-ever time-based connection and transmission agreement (also known as ATR-85). The agreement enables the battery developer to connect the 'GIGA Leopard' battery project, with a capacity of 300 MW and storage capacity of up to 1,200 MWh, in Delfzijl to the TenneT grid. The ATR-85 was developed in consultation with Energy Storage NL, regulator ACM and TenneT last year under the National Grid Congestion Action Program (LAN).
Approval ATR-85
To complement the current firm transportation law, the Consumer & Market Authority (ACM) gave the green light in 2024 to time-limited and time-block contracts. Time-based contracts allow connections of wholesale customers to the electricity grid, where the connection is available at least 85% of the time. This type of contract is only for large business customers of TenneT. They pay a discounted transmission tariff - allowing on average about 65% discount on transmission tariffs - and in the process potentially make room for other parties on the waiting list. These new contract forms are particularly interesting for companies without 24/7 business processes and are offered by grid operators as an alternative to the existing, fixed transmission right.
Energy Storage NL: ATR-85 is first big step for storage sector
Energy Storage NL, together with the ACM and TenneT, developed several possible contract forms for energy storage last summer. The main aim was to see if a discount on transmission tariffs for energy storage was possible, while also guaranteeing stability on the electricity grid. From this collaboration, the ATR-85 was born.
According to Energy Storage NL, the ATR-85 represents a first major step for the further integration of batteries into the energy system. However, the industry organization does see that there is still an uneven playing field with the (partial) exemption on transport tariffs for batteries in, for example, Belgium and Germany. Energy Storage NL therefore sees the announcement of Giga Storage as good news and confirmation that this form of contract offers new opportunities for the Dutch storage market. The industry association does warn that several storage parties are currently shifting their interest in realizing energy storage projects across borders because of higher discounts abroad. This may ultimately have major consequences for storage activities in the Netherlands and thus for the stability of our future energy system.
Energy Storage NL, therefore, earlier this year, together with research firm Kalavasta research done on the effect of transmission tariffs on the realization of social added value that batteries can provide in the energy system. This revealed, among other things, that batteries provide a more efficient electricity grid, resulting in significant cost savings for grid operators. This added value - despite the ATR-85 - is negated by the (rising) level of transmission tariffs. It is for this reason that Energy Storage NL and Kalavasta believe that a further reduction in transmission tariffs should be considered by the regulator.
