The Dutch electricity grid is one of the most reliable grids in the world. However, it is facing increasing challenges. This is due to the growing electricity demand and the rise of renewable energy sources, such as wind and solar energy. As a result, the grid is under pressure at certain times, especially when a large amount of power is being generated or consumed. This can lead to congestion.
To keep the electricity grid stable, effective congestion management is necessary. This means implementing solutions to relieve the network and use it optimally, without compromising safety and reliability.
Grid operators are required to apply congestion management to reduce or resolve congestion. This ensures a reliable electricity supply in the Netherlands. Congestion management helps better distribute peak loads across the grid and prevents the network from being overloaded. The process involves several stages: as the pressure on the grid increases, the measures taken by the grid operators become more drastic.
Congestion on the electricity grid means that there is insufficient capacity in the network to transport all generated electricity to the appropriate locations.
This can happen if more power is being demanded than the network can handle (demand side), or if more power is being generated at certain locations than the network can transport (supply side).
Congestion often occurs during times of high electricity consumption (demand) or high electricity generation (supply). The rapid growth of solar panels and wind farms is causing overloads in some areas of the electricity grid. This is particularly true in rural areas, where the infrastructure is less robust. Outdated grid infrastructure also plays a role. Certain parts of the electricity network were not designed to handle the current peaks and valleys in power demand and supply.
The capacity of the grid is increasingly insufficient to transport all that sustainable energy efficiently to consumers and businesses.
To prevent or resolve congestion, grid operators can take various measures, with expanding grid capacity being the most important. Until then, congestion management must be applied to keep the electricity network stable.
Congestion management has several benefits:
Congestion management is crucial for a stable, affordable, and sustainable energy supply in the Netherlands. It is becoming increasingly important as the demand for electricity and the share of renewable energy sources continue to grow.
Market participants who want to contribute to congestion management can make agreements with their grid operator about this. These agreements are made in their contract. In the case of a capacity reduction contract, this can be either on-demand or with a fixed time window. In all cases, the agreements are about flexibility in consumption or electricity feedback. These contracts are then activated by the grid operator through the GOPACS platform.
GOPACS plays an important role in managing congestion on the Dutch electricity grid. The platform is a joint initiative of the Dutch grid operators of the electricity network. Parties that have flexible capacity available can offer it on GOPACS. Grid operators use this capacity to resolve congestion.
Congestion on the electricity grid is seen as a major challenge for the energy transition, as it can limit the use of renewable energy sources and lead to inefficiencies in the energy system.
The GOPACS platform is one of the tools of the Dutch grid operators for congestion management.
Congestion management is the set of measures that grid operators use to mitigate the effects of congestion and prevent the network from becoming overloaded. While congestion points to the problem of capacity shortages, congestion management focuses on practical solutions to address these bottlenecks. Congestion management is crucial for a stable, affordable, and sustainable energy supply in the Netherlands. It becomes increasingly important as electricity demand and the share of renewable energy sources continue to grow.
Maintaining balance on the electricity grid is essential for a reliable and stable power supply. At all times, there must be a balance between the amount of electricity generated and consumed. If this balance is disrupted—e.g., due to a sudden spike in demand or a drop in production—it can lead to voltage problems, failures, or even a blackout. Congestion management is about balancing supply and demand, often through collaboration between grid operators and other parties, such as large companies, energy producers, and households.
Congestion is a major social problem that is only increasing. That’s why we were one of the first to get in. Powerhouse is convinced that with Gopacs’ platform and our customers’ ability, we can provide a solution to the transportation problem.
GOPACS is the platform through which grid operators jointly unlock, tune and coordinate flexible capacity in the electricity grid. By leveraging the flexibility of our customers and market participants, we can maximize the use of the current energy infrastructure. This is how market forces contribute to an affordable and reliable energy supply
We embrace the transparency that GOPACS brings us in several areas: GOPACS clearly identifies where network problems are located and thus where we cannot further upgrade or tune our plants. They also clearly indicate the volumes sought and traded. This transparency benefits competitiveness.
GOPACS creates a win-win situation. The flexible purchase or provision of power by customers, energy suppliers/generators and market participants allows grid operators to make better use of the current power grid. This way we avoid expensive investments and therefore an increase in energy bills. And at the same time, new earning opportunities arise for parties participating in GOPACS. This makes GOPACS a unique initiative, born of intensive cooperation between the Dutch grid operators.
In recent years, we have seen a significant increase in the cost of solving congestion. TenneT is increasingly deploying the GOPACS platform, making it an important means of preventing congestion. The purpose of this platform is to give more parties with flexibility easy access to a growing market for congestion services. Orders on the GOPACS platform contribute to the most cost-effective resolution of congestion and solutions can come from all grid planes, from all conceivable assets and from across the country.
Optimax Energy is very excited about GOPACS because it allows us, as a young trading company, to participate in a congestion management mechanism in the Netherlands through a very transparent and well-defined process. Energy markets are changing rapidly and we believe that these mechanisms must also evolve to meet the challenges ahead in a more innovative and clear-cut way.
