Congestion occurs when the demand for electricity transport exceeds the available transport capacity. In other words, there is not enough capacity on the electricity grid to transport all the electricity that is needed at that moment.
If this situation is structural, the grid operator will reinforce or expand the electricity grid. However, expanding the grid is a process that takes several years. In the meantime, grid operators try to manage the available capacity by shifting where and when electricity is consumed or generated. They do this with support from the market, such as large energy users, aggregators and energy suppliers.
These parties can help by shifting their electricity consumption or generation to another moment. Energy can also be stored temporarily. This creates the flexibility needed to prevent or reduce peaks on the electricity grid.
When a grid operator expects a shortage of transport capacity (congestion), the market is asked to help resolve it by adjusting energy consumption. This adjustment creates flexibility.
For example, a cold storage facility could switch off its freezers for two hours during a peak demand period without affecting the temperature. This frees up capacity on the grid for another user.
For more information on congestion, see the ‘About congestion management‘ page.