Congestion Service Providers (CSPs) tend to experience notifying the assets they manage for congestion services as time-consuming. With the introduction of framework contracts, grid operators are simplifying this process. One contract containing one pricing formula per asset type avoids having to make separate arrangements for each asset. And that’s nice not only for CSPs, but also for grid operators.
Next Kraftwerke is the first CSP to enter into such a framework contract for congestion management with all grid operators. The framework contract allows grid operators to immediately have more than 150 megawatts (MW) of flexible capacity available in the event of congestion, spread across several solar farms in the Netherlands. The latter is precisely what makes this framework contract so powerful: Next Kraftwerke does not have to renegotiate with a different regional grid operator in each region.
GOPACS as a central platform for congestion management
Grid operators post a request to use less transmission capacity on the GOPACS platform if grid congestion is expected. CSPs can respond to this and offer flexible power. This can be through free bidding or on the basis of arrangements set out in a contract.
With a framework contract, a grid operator can dispose of all the flexible assets managed by the CSP with one central agreement, because these assets are dynamically enumerated in GOPACS. This first framework contract involves the generation capacity of solar parks. At a later stage, framework contracts signed with CSPs may include a mix of supplying and consuming assets. The framework contract removes the need for lengthy and multiple negotiations because if a CSP becomes manager of a new asset, it can be dynamically added under the same contract terms.
Quicker unlocking flexible power
“Framework contracts are key to quickly unlocking flexible capacity for grid operators. By being able to control the electricity production of the solar farms we manage, we help grid operators reduce peaks on the electricity grid.” aldus Jan De Decker CEO van Next Kraftwerke BeNeLux. “This contract is a great leap forward in the energy transition because it saves us all a lot of time. Moreover, this framework contract allows us to get a market-based price for our assets.”, adds Nick Hubbers, Country Manager Next Kraftwerke Netherlands.
Sign up as a CSP
Congestion management is a growing market for parties involved in managing power-generating and power-consuming assets. Do you own or manage assets for such things as power trading and/or balance services? Then consider including congestion services in your revenue model. Check out the Participate as a CSP page to see how that works.