The pressure on our electricity grid is felt daily. For entrepreneurs, this often means waiting for a connection, while we are simultaneously in the midst of a full-scale sustainability transition. However, there is good news from Brussels. In a recent report from the European Commission on local flexibility markets, the Dutch approach via GOPACS is highlighted as an international textbook example.
The report confirms what we at the joint grid operators have known for a long time: we cannot solve ‘grid congestion’ with more cables alone, but primarily through smarter collaboration. By pooling the strengths of national and regional grid operators, we make it easier than ever for large business customers and service providers to monetise their flexible capacity. In this article, we dive into the key conclusions of the EU and show how this vision is already ensuring a more accessible and reliable energy grid today.
The recognition from the European Commission underlines that we are on the right track in the Netherlands. Making smarter use of our electricity grid is not a distant dream, but a joint task from which we are already reaping the benefits. By creating space on the grid through GOPACS, we work together to ensure that the energy transition does not stall, but actually accelerates. For you as an entrepreneur, this means not only a social contribution to a sustainable Netherlands, but also a concrete opportunity to achieve a return from your flexible capacity.
What does the report say?
A central conclusion is that congestion management is no longer an individual task for a single grid operator. There is a strict necessity for integrated coordination between transmission system operators (TSOs) and distribution system operators (DSOs). This prevents actions by one operator from leading to new problems (such as overloading) on the network of the other operator.
The report states that local markets should not be isolated “islands.” The most successful models utilise market coupling: linking local congestion solutions to regular trading markets (such as the intraday market). This increases liquidity and makes it easier for market parties to participate, as they can continue to use their existing trading strategies.
To obtain a sufficient supply of flexibility, the barriers to market access must be lowered.
In contrast to the national energy market, where the location of production or consumption is often less relevant, location data is essential for local markets. The report concludes that market designs must be able to filter specifically by where an installation is located to effectively solve “grid congestion.”
The smart deployment of flexibility is seen by the EU as a direct alternative to, or supplement to, physical grid reinforcement. This leads to:
The report identifies GOPACS as a crucial practical example (case study) of how the EU’s theoretical goals are being put into practice. While many regions still struggle with the separation between local and national markets, GOPACS shows that a direct link with the intraday market minimizes the threshold for market parties. It does not function as an additional marketplace that entrepreneurs must visit separately, but as a smart ‘layer’ on top of existing trade, whereby flexibility is automatically deployed where the grid needs it most.
The report underlines this with the following conclusion:
“The GOPACS initiative represents a landmark in TSO-DSO coordination, demonstrating that by integrating local congestion needs directly into wholesale market processes, we can unlock flexibility at scale without fragmenting the energy landscape.”
Are you curious about the possibilities for your specific connection or region? The regional grid operators are ready to help you with the next step. Click on your grid operator to go directly to the relevant information about congestion management and flexibility:
Check your postcode in the EAN codebook or look under ‘Large Business‘ for an overview of how we connect you and your grid operator.
Download the report
EUROPEAN COMMISSION
Directorate-General for Energy Directorate C
Green Transition and Energy System Integration
Unit C3 – Internal Energy Market
Rapport: specification and design criteria for local flexibility-MJ0126015ENN
source: Rapport: specification and design criteria for local flexibility-MJ0126015ENN
