ACM announces code change to alternative transmission rights
The Consumer & Market Authority announced this week it is preparing a code change to allow alternative transmission rights (ATR) and 'use it or lose it' (UIOLI) for grid operators. This follows up on a consultation on this from November 2022. These funds should be used to use the existing electricity grid more efficiently. Alternative transmission rights mean, for example, Non-Firm ATOs.
The ACM will publish a draft decision on UIOLI and a code decision on variable transmission right (NFA) later this year. Until then, it has announced that it will allow such transport rights subject to consultation with the authority. The premise is that alternative transport rights can only be offered in areas with (imminent) congestion for the time being. In addition, this will always be a voluntary arrangement. Also for the UIOLI principle, this is only possible if it concerns grid capacity that is unnecessarily reserved in an area with an (imminent) congestion problem.
Energy Storage NL posted a response to the ACM's consultation late last year. In it, the industry was critical of the proposals. This is because the benefits of the alternative transmission rights do not appear to be commensurate with the risks involved. These risks are based on three factors: 1) obligation versus voluntariness; 2) proportionality of the remedy; and 3) financial security.
The latest announcement explicitly mentions that alternative contracts will be voluntary. Energy Storage NL welcomes this view of the ACM. However, there is still much uncertainty around the fee for entering into a non-firm ATO, and the degree of restriction agreed upon in advance. ESNL therefore calls on the ACM and grid operators to communicate quickly and clearly about this.
In addition, the proposed discounts on transmission tariffs under an NFA are insufficient to ensure the financeability and business case of many energy storage projects. Therefore, alternative transmission charges cannot be seen as the means to unlock more flexibility in the electricity grid. ESNL emphasizes that a separate category for energy storage in the grid code, coupled with a generic change in transmission tariffs for storage, is essential to accelerate market development.
Read the ACM's full announcement here: https://www.acm.nl/nl/publicaties/acm-geeft-extra-mogelijkheden-om-bestaande-stroomnet-efficienter-te-gebruiken
View ESNL's response to the November consultation here: https://www.acm.nl/system/files/documents/consultatiereactie-energy-storage-nl.pdf
