GIGA and TenneT complete time limited contract

The new contract type, developed as part of the Landelijk Actieprogramma Netcongestie, allows GIGA Storage to connect its battery project, GIGA Leopard with a capacity of 300 MW and storage capacity of up to 1200 MWh, in Delfzijl to the electricity grid. This new form of contract ensures that it uses scarce grid space more efficiently. This is necessary because congestion on the electricity grid now means that connections with a full and fixed transmission right are not always possible.

Minister Hermans said: “We are all working very hard to expand the power grid faster, and we also need to use the grid smarter. Thanks to this new type of contract and good cooperation, it will be possible to make the best use of the space left on the grid outside ‘peak hours’. And moreover, to deploy renewable electricity when there is less sun and wind. I hope this is a breakthrough and other companies that can do so will also consider a flexible contract.”

A major step forward

When there is a lot of wind or the sun shines heavily, huge batteries can temporarily store the sustainable electricity generated. That green electricity is used in case of shortage to maintain the balance on the power grid and guarantee security of supply. Batteries reduce our dependence on coal and gas power plants to produce power once there is little or no solar and wind power. “This agreement with GIGA Storage is a crucial step in improving the efficiency and reliability of our current electricity grid,” said TenneT CEO, Manon van Beek. “With this time based form of contract, we can make better use of the available capacity and connect more customers who use the grid outside peak hours.”

More economical

The battery helps keep the power grid stable by providing extra power when needed. This can be cheaper and more efficient than switching on traditional power plants. The battery also stores electricity when prices are low so that it can be used later when demand is higher. As a result, green power is better utilised and energy remains affordable. “With this new contract, we show that by working together, we can come up with very good solutions. By listening carefully to each other we really take the energy transition a step forward and make a significant contribution to a more sustainable and stable energy supply,” commented Ruud Nijs, CEO GIGA Storage. The new agreement with TenneT will start on 1 October 2025.

New alternative contracts

To complement the current firm transmission law, the Netherlands Authority for Consumer and Markets ACM) gave the green light to time based and time block contracts in July 2024. Time based contracts enable connection of large consumers to the electricity grid, where the connection is available for a minimum of 85% of the time. This type of contract is only for large business customers of TenneT. They pay a reduced transmission tariff and possibly make room for other parties on the waiting list. These new contract types 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.

Batteries on the high-voltage grid

To ensure a stable electricity grid in the coming years too, more flexibly deployable power in the form of batteries, among other things, is needed. Batteries will play an important role in maintaining stability in the electricity grid, including for voltage management, dynamic stability, control and reserve power and re-dispatch. So said TenneT in the position paper, ‘TenneT's position on Battery Energy Storage Systems (BESS)’. It gives market parties and relevant government authorities insight into the application of large batteries (>70 MW) on the high voltage grid.

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Summer 2024 issue

The Summer 2024 issue of Energy Global starts with a guest comment from Terrawatt on the streamlining of the permitting process in Italy, before moving on to a regional report from Frost & Sullivan on the energy landscape in Asia Pacific. This issue looks at key topics such as wind installation vessels, offshore wind turbine foundations, weather analysis, solar maintenance, and more!

Read the article online at: https://www.energyglobal.com/energy-storage/27082024/giga-and-tennet-complete-time-limited-contract/