Capacity Limiting Contract (CBC)
A Capacity Limiting Contract (CBC) is an agreement between a grid operator and an electricity consumer or producer, in which the participant agrees to temporarily reduce electricity consumption or generation in exchange for financial compensation. The goal is to relieve pressure on the grid during periods of congestion.
Key characteristics of a CBC:
- Purpose: To prevent or reduce grid congestion by temporarily adjusting energy use or production
- Compensation: Participants receive a financial reward for the flexibility they provide
- Duration: The contract usually remains in effect until the planned grid expansion in the affected area is completed
Types of CBCs:
- Fixed-time window CBC-T: The participant agrees to reduce usage or generation during predefined times (e.g., daily between 16:00 and 19:00)
- On-demand CBC-A: The participant adjusts consumption or generation at the request of the grid operator, usually announced the day before
Capacity Limiting Contracts within GOPACS
GOPACS is a platform established by the Dutch grid operators to utilise flexible capacity from the market in order to reduce grid congestion. Within GOPACS, Capacity Limiting Contracts can be used to activate flexible capacity on the day-ahead market.
Conditions for participation
To qualify for a CBC, a company generally must:
- Have a minimum contracted grid capacity (for example, 100 kilowatts for consumption and/or generation)
- Be able to adjust electricity consumption or production either on request or at fixed times
- Be located in a region where transport scarcity has been officially declared
By participating in a CBC, a company contributes to a stable and reliable electricity grid and receives compensation for the flexibility it provides. Interested in getting a CBC? See here how you can get one from your grid operator.
FAQ Capacity Limitation Contracts (CBC)
– General Questions
What is a Capacity Limitation Contract (CBC)?+
A CBC is an agreement between a grid operator and a party with flexible capacity. The party agrees to reduce electricity consumption or generation at specific times to relieve local pressure on the grid.
Why do CBCs exist?+
CBCs are designed to prevent grid congestion by temporarily reducing electricity usage or generation, helping to make better use of the existing electricity grid.
How is a CBC different from redispatch?+
A CBC is agreed in advance and activated on the day-ahead market. Redispatch is more flexible and is used on the same day (intraday).
When is a CBC activated?+
CBCs are activated when congestion is expected in a specific area the following day. The reduction is scheduled in advance.
What does “capacity limitation” mean for my connection?+
It means you temporarily use or generate less electricity than usual. The maximum allowed capacity is defined in the contract.
– Participation & Eligibility
Who can participate in a CBC?+
Large consumers or producers with at least 100 kW of contracted transport capacity located in a congestion area.
What are the requirements to participate in a CBC?+
You need to be able to control your flexible capacity, be located in a congestion area, and provide metering data.
Do I need to be a CSP to participate?+
No. You can also participate via a Congestion Service Provider (CSP).
How do I know if I’m in a congestion area?+
Congestion areas are listed on the national capacity map. Your grid operator or CSP can also advise you.
– Contract Functionality
What is defined in a CBC?+
The maximum electricity consumption or production allowed during congestion periods, and the conditions under which it applies.
How often and how long will my capacity be limited?+
This depends on your area. Sometimes a few times per year, sometimes more often. Duration is typically per time block.
Is my flexibility used on-call or on schedule?+
In CBCs, the capacity limitation is scheduled. You know in advance when flexibility will be used.
What happens if I cannot comply with the contract?+
You may receive a reduced payment or a penalty, depending on the terms of the agreement.
Will I be informed in advance when activation is needed?+
Yes. The timing of the limitation will be communicated at least the day before.
– Compensation
Do I receive compensation for participating?+
Yes. You receive a fixed availability payment for the capacity you commit. Sometimes additional compensation is paid when activated.
How is the payment determined?+
It depends on the agreed capacity, the duration of the reduction, and current market conditions. It is set out in the contract.
Do I get paid if I am not activated?+
Yes. Even if you are not activated, you receive the availability fee.
Are there additional payments during activation?+
Sometimes. It depends on your contract. Ask your grid operator or CSP for details.
– Technology & Infrastructure
What are the technical requirements?+
You need a smart meter or metering system, the ability to share data promptly, and the capability to control your usage or generation.
Do I need metering installations?+
Yes. You must be able to monitor and report electricity usage or generation, often via an EAN code linked to your connection.
Do I need to send real-time data?+
Not necessarily real-time, but timely enough. Your grid operator or CSP will inform you of the requirements.
Do I need remote control over my processes?+
It’s not mandatory but highly recommended. Automatic control increases reliability and makes it easier to fulfill obligations.
– Practical & Administrative
How do I sign a CBC?+
Contact your grid operator or a CSP. They will guide you through the process, from eligibility check to contract signing.
Should I contact the grid operator or a CSP?+
You can contact either. A CSP can manage the process and control on your behalf.
How long does a CBC last?+
Until the grid in your area is reinforced. This may take several months or even years.
Can I terminate the CBC early?+
Yes, but notice periods apply. Check your contract or ask your grid operator or CSP.
Does my energy supplier need to be involved?+
Not necessarily. However, your BRP must be informed to ensure proper administrative and technical alignment.
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