Structure of transmission sector
2.2.1 All transmission networks (i.e. electricity networks with a voltage level of 110kV or more) are owned and managed by the TSO, TenneT, which is wholly owned by the state. The state is currently considering partial privatisation of TenneT to attract additional financing for the necessary infrastructure investments. Given that this is currently legally prohibited, such privatisation would require an amendment to the E-Act. It is expected that any privatisation of TenneT would only be a minority interest.
2.2.2 TenneT’s main tasks are to maintain and manage the transmission networks, monitor electricity supply, resolve large-scale disruptions in electricity transmission and maintain the balance between supply and demand. In addition, TenneT is required to develop the electricity market and promote the establishment of an integrated Central Western European market.
2.2.3 TenneT provides connection, transmission and system services. Tariffs and conditions for these services are regulated by the ACM.
2.2.4 In order for TenneT to maintain/restore the energy balance, parties connected to the electricity grid (with the exception of small consumers) and licence holders are required by law to submit daily programmes to TenneT, specifying their input and output in 15 minute increments (including any imports and exports), and to act in accordance with these programmes. The obligation to submit these programmes is referred to as ‘programme responsibility’. Connected parties can outsource their programme responsibility to a competent party recognised by TenneT. The difference between the programmes and the actual electricity consumption is the imbalance. Parties pay an imbalance tariff to TenneT in respect of such imbalances, based on the marginal prices of upward and downward regulation bids selected by TenneT in the balancing energy market, plus an incentive component that is set on a weekly basis.
2.2.5 All parties connected to the grid in the Netherlands have equal rights, regardless of their connection date. This means that new electricity generation is connected to the transmission network without any restrictions. Since April 2011, TenneT has applied congestion management (in relation to a build-up of electricity due to overloading) on the Maasvlakte. Recently, problems have also occurred in Zeeland and West Brabant and it is expected that, in the near future, congestion may arise in the Northern Netherlands, especially around Eemshaven. In both the Maasvlakte and Northern Netherlands, permanent solutions are being developed through expansion of the grid (Randstad 380kV South Ring (early 2013) and North West 380kV (late 2016) respectively). In the West, congestion management has previously been applied, however, the congestion was resolved in 2010 by expansion of the high-voltage grid.
2.2.6 Pursuant to EU Directive 2009/28, the E-Act has been amended to require TenneT to give priority to electricity from renewable sources in the event of congestion on the electricity grid. These provisions have not yet entered into force, since discussions have arisen over the allocation of congestion management costs. Initially, such costs were intended for the producers of conventional power in congested areas. However, the European Commission has indicated that a distinction between conventional and renewable producers is not allowed for the allocation of costs. Consequently, a decision must be made to either socialise the costs or charge all producers.
Cross-border issues
2.2.7 TenneT is the first European cross border TSO. In addition to the Dutch transmission networks, it operates a transmission network in Germany, covering an area of 140,000km², plus three cross-border interconnection points on the Dutch/German border and two cross-border interconnection points with Belgium.
2.2.8 In 2008, a joint venture between TenneT and the Norwegian transmission manager, Statnett, installed the “Nor-Ned cable”, a high voltage interconnector between the Netherlands and Norway. Together with the UK’s National Grid, TenneT is also involved in the BritNed cable, the high voltage interconnection between the Netherlands and United Kingdom that came into operation in 2011.
2.2.9 In total, the Netherlands has seven cross border interconnections, with plans for further expansion. TenneT has signed a cooperation agreement with the Danish TSO (Energinet.dk) for the development of an undersea high voltage interconnection between the Netherlands and Denmark (the COBRAcable) to connect with offshore wind parks in the North Sea. A map of the networks is illustrated at Figure 1 below.
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