2022 tripled Dutch electricity demand: Stedin calls for large-scale flexibility

As electricity demand is forecast to continue to rise in 2023, Dutch Stedin Group – which consists of grid operator Stedin, NetVerder and DNWG Group – has called on government and large-volume electricity consumers to tap into flexible consumption.

High-volume consumers of electricity applied for 3GW of new electric power from grid manager Stedin in 2022. This is three times the volume in the previous year reflecting, according to the annual report of Stedin Group, global developments and changing customer demand.

In 2022, Stedin invested a total of €712 million ($759 million) in the management and expansion of its gas and electricity grids; €25 million ($26.7 million) more than in the previous year.

In a statement following the release of the annual report, Stedin stated its expectation that the growth in demand will continue in 2023 and that its investment package will increase to a value of €825 million ($880 million).

And despite their increased investment – past and future – in the grid, Stedin decries how it is becoming increasingly clear that laying more cables and building more distribution stations alone will not suffice to ensure a sustainable and reliable energy system by 2050.

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The Group, therefore, called on the Netherlands to firmly commit to creating a flexible energy system to which everyone contributes by optimising the use of the available grid capacity.

Koen Bogers, CEO of Stedin Group, stated: “At the present rate, the expansion of the electricity grid is unable to keep up with demand for electric power…We call on industry and other high-volume consumers of electricity to become more flexible in how they use the grid.

“For example, by consuming power on especially windy or sunny days. This will help to relieve pressure on capacity bottlenecks in the grid and will enable companies to respond more effectively to the ever more volatile prices on the energy market.”

GOPACS x PVNed

And one way in which flexible congestion management is already being coordinated is that of the GOPACS platform.

Stedin’s call to flexible action was preceded by an announcement two weeks prior from flexibility platform GOPACS of a partnership with independent Balance Responsible Party (BRP) PVNed, which will support GOPACS in the correct settlement of nominations between various trading platforms linked to GOPACS.

GOPACS is a platform of Dutch network operators – Stedin alongside Coteq Netbeheer, Enexis, Liander, Rendo, TenneT and Westland energy solutions – to reduce congestion and balance out electricity demand, connecting several trading platforms so as to open space for congestion management.

The platform offers market parties with available flexibility the lowest possible threshold to offer this flexibility for the management of electric grid congestion.

Combining bids from different platforms on GOPACS is hoped to contribute to the most cost-efficient implementation of congestion management by the Dutch network operators.

Selected on the basis of market consultation and exploratory talks, PVNed will act as a third party against which called bids are nominated.