University of Twente Student Theses


Electricity grid congestion and application of a novel tariff in the Netherlands

Laan, J.J. (2023) Electricity grid congestion and application of a novel tariff in the Netherlands.

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Abstract:In recent years, the Dutch electricity grid has experienced increased congestion due to the ongoing energy transition, resulting in a growing shortage in grid connection capacity. Various measures, including regulatory updates, grid reinforcement efforts, and the introduction of new electricity contract forms, have been implemented to alleviate congestion. However, these measures, when combined, did not reduce significantly peak grid utilization or address the capacity shortage. This research introduces a novel approach named the Rush-Hour tariff, aimed at optimizing grid utilization. The Rush-Hour tariff introduces fees on supply and demand bids for specific hour blocks of the day-ahead electricity market. By doing so, it reduces the volume of electricity traded and subsequently lowers grid utilization in these hours. While the tariff achieves its intended purpose, it does impact electricity prices. Therefore further research is recommended for tariff implementation, focusing on the following three key areas: feasibility of implementation in the electricity price calculation algorithm EUPHEMIA; bidding strategy adjustments based on market feedback; and assessment of international market impact due to interconnect electricity flows.
Item Type:Essay (Master)
Faculty:ET: Engineering Technology
Subject:50 technical science in general, 53 electrotechnology
Programme:Sustainable Energy Technology MSc (60443)
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