Better utilisation of renewable electricity from large solar farms by batteries

The government is making €416 million available for the use of batteries in large solar farms on land and rooftops. Network operator TenneT has also made a proposal to adjust transmission tariffs for batteries to reduce costs. This will make it easier to deploy batteries on the Dutch power grid and is expected to allow many more batteries to be installed. By deploying batteries at large solar farms on land and rooftops, 'deferred, supply' becomes possible and the renewable electricity generated can be better utilised. At times when more solar energy is generated than consumed, electricity is temporarily stored and supplied to the grid at times when the sun is not shining or hardly shining at all. This reduces the use of gas and coal-fired power plants during those (evening) hours.

Research

Research firm CE Delft has investigated the usefulness and necessity of subsidies for batteries at the request of the government.

The research firm concluded that batteries are the cheapest and most feasible option to further reduce_{CO2 emissions} in 2030 at times when there is less supply of renewable electricity on the grid.

The €416.6 million was previously earmarked by the cabinet as part of the climate package this spring.

It is expected that 160 to 330 megawatts (MW) of battery power can be installed using this subsidy.

This will lead to an annual_{CO2 reduction} of 0.08 to 0.17 megatons.

Transmission tariffs

Network operator TenneT has also proposed a new form of contract with lower transmission tariffs for batteries and other flexible capacity. The discount can be up to a maximum of 65%.

This will make it easier to connect batteries to the Dutch electricity grid.

Battery operators using this form of contract must, on request, help the grid operator reduce congestion on the electricity grid (grid congestion).

For example, by charging or supplying less at times when a lot of electricity is being transmitted.

The Consumer and Market Authority (ACM) has the exclusive power to set transmission tariffs. Netbeheer Nederland will further develop the proposal.

The introduction of a new tariff is expected to be ready in spring 2024.

According to research commissioned by TenneT, introduction of a new tariff could lead to 2 to 5 gigawatts (GW) of new battery power in 2030.

More information on the role of batteries in the energy system can be found in Minister Jetten's parliamentary letter.

Source: rijksoverheid.nl