The “term-linked contract” saves space on the electricity grid.

Grid operator Tennet has found a way to free up space on nearly the entire electricity grid. It has entered into a “duration-linked connection and transmission agreement” with Giga Storage. This agreement gives Giga Storage the right to buy electricity from the grid or feed it back at least 85% of the time.

The new contract model, developed as part of the National Programme to Address Network Congestion, ensures that space on the grid is used more efficiently. Customers receive a discount of up to 65% on transmission prices. Minister for Climate and Green Growth Hermans: “Thanks to this new type of contract and good cooperation, it will be possible to make optimal use of the space on the power grid that is still available outside of the ‘rush hour’. And also to use sustainable electricity when there is less sun and wind. I hope that this is an achievement and that other companies can also consider a flexible contract.

New Alternative Contracts

In addition to the current fixed transmission law, the Dutch Authority for Consumers and Markets (ACM) has given the green light to term-bound and time-bound contracts in spring 2024. Time-bound contracts allow consumers to be connected to the electricity grid on a large scale, where the connection is available at least 85% of the time. This type of contract is only intended for Tennet’s large corporate customers. They pay a reduced transmission price and may make room for other parties in the queue. These new contract models are particularly interesting for companies that do not have 24/7 business operations and are offered by network operators as an alternative to the current fixed transmission law.

Batteries on high voltage grid

To ensure a stable electricity grid in the coming years, more flexible and dispatchable energy in the form of batteries is needed, among other things. “Batteries will play an important role in maintaining stability in the electricity grid, including voltage management, dynamic stability, control, backup power and re-dispatch,” Tenet says in the position paper “Tenet’s Position on Battery Energy Storage Systems (BESS)”. Market players and relevant authorities will thus gain insight into the application of large batteries (>70 MW) to the high-voltage grid.

Giga Storage helps the grid supply extra power when it’s needed, and stores electricity when prices are low. The agreement goes into effect on October 1, 2025.