The Capacity Steering Contract (CSC) is a new instrument introduced in 2025 by the Netherlands Authority for Consumers and Markets (ACM) in the Electricity Grid Code, as a supplement to existing contract types such as redispatch and Capacity Limitation Contracts (CBC).
A Capacity Steering Contract is a congestion management agreement that allows grid operators to make arrangements with connected parties (such as battery parks, solar farms, or industrial consumers) regarding active grid usage in response to congestion. Unlike CBCs, which primarily focus on limiting grid usage, the CSC enables active steering:
The CSC stands out because it actively utilizes flexibility for congestion management. While traditional contracts like CBCs mainly focus on limiting grid usage, the CSC allows for active control. This means that batteries or other controllable assets can be deployed to support the grid: feeding in extra electricity during consumption congestion, or consuming extra electricity during feed-in congestion.
This opens up new business models, where energy storage is not only commercially attractive but also plays a structural role in grid management. Additionally, the CSC contributes to freeing up grid capacity, enabling new connections in areas affected by grid congestion.
On August 14, 2025, the ACM published a draft code decision incorporating the CSC into the Electricity Grid Code. A consultation period is open until November 6, 2025, during which stakeholders can provide feedback on the proposal.
Although the CSC is an important addition to existing instruments, it is currently not part of mandatory participation in congestion management. This means grid operators are not yet required to apply the CSC, even in areas with high congestion pressure.
One example is the Dronter Energie Opslag battery park (90 MW), which can potentially act as a congestion mitigator. In 2023, grid operator Stedin already signed a CSC with a battery project in Tholen.
