Home batteries do not cause additional grid congestion

Yesterday, a letter to Parliament was published about the 'Progress of discussions with the sector about agreements on home batteries' . These discussions were initiated after a knowledge session about home batteries, organized by Energy Storage NL, and requests from Holland Solar and Netbeheer Nederland to the ministry to quickly develop policy for this. During the session of Energy Storage NL, a sprint team was formed that focused on agreements for a net-neutral integration of home batteries.

Chance of additional grid congestion smaller than expected

The sprint team, consisting of grid operators, the Ministry of Climate and Green Growth, industry organizations such as Energy Storage NL (ESNL) and Holland Solar and various market parties, has spent the past few months investigating whether a covenant and quality mark are necessary to prevent home batteries from worsening grid congestion.

However, the discussions showed that the market for home batteries is developing towards own use of locally generated solar power, which actually contributes to alleviating grid congestion. In addition, participation in the imbalance market has become less attractive, which reduces the risk of negative impact of home batteries on the electricity grid. These insights are confirmed by recent research by DNV, which concludes that home batteries currently contribute little to additional grid load.

Because market parties experience that customers are not very willing to accept loss of income resulting from limiting the use of the battery, providers that carry the quality mark would be at a disadvantage to competitors that do not - unless compensation were offered for the flexibility provided. However, grid operators currently do not consider such compensation to be appropriate. It has therefore been decided not to develop a covenant and quality mark in the short term. Instead, the parties involved are focusing on a long-term approach via the National Grid Congestion Action Programme (LAN). This approach focuses on smart control of devices, financial incentives and voluntary agreements for congestion management on the low-voltage grids, with a planned implementation from 2028.

Home batteries as a solution for grid congestion

All parties in the sprint team see opportunities for home batteries to actively contribute to solving grid congestion, provided they charge or discharge at the right times. Through so-called congestion management agreements, batteries can be controlled at the request of the grid operator, in exchange for compensation. In order to test this in practice, specific pilots will be started in the near future with market parties and grid operators. All parties recognize the potential of home batteries as a flexible link in the low-voltage grid and the importance of clear agreements within the LAN.

Response from Energy Storage NL and Holland Solar

Energy Storage NL is positive about the outcome of the process and the recognition that home batteries do not currently cause additional grid congestion.

Jeroen Neefs - Energy Storage NL : “It is good that we jointly – as developers, grid operators and the ministry – agree that home batteries are no longer seen as a problem, but rather as part of the solution for grid congestion. In order to utilise the full potential, the right incentives are needed. Now that this insight has been gained, it is time to take concrete steps together with a new cabinet and the grid operators in rewarding self-consumption, including through home batteries, but also, for example, through individual heat storage.”

Wijnand van Hooff – Holland Solar: “ Home batteries can, according to all parties in the sprint team, help households increase their own consumption of solar energy and thus keep household energy bills low and limit grid congestion. The outcome of the discussions illustrates the importance of agreements on congestion management on low-voltage grids, so that households receive the right incentives and flexibility is stimulated. Meeting the 2028 deadline for congestion management on low-voltage grids is therefore indispensable.”

At the same time, the industry associations emphasize the importance of monitoring. Changes in the adoption rate or the use of home batteries on various energy markets can still make a quality mark relevant. That is why ESNL and Holland Solar continue to monitor developments together with the sector and grid operators. Twice a year – after the summer and after the winter – meetings are organized in which practical data, adaptation figures and market developments are shared. These insights help to jointly take further steps towards effective congestion management.