Energy
Making more and more sustainable energy solutions possible
Approach
Market developmentDate
October 25, 2023Reading time
4 minutesInnovations in technologies and business models driving the electrification of energy systems are emerging rapidly. Wind and solar energy projects are being developed on increasingly larger scales. To have sustainable electricity available 24/7, energy storage systems are playing an increasingly important role.
The rapid increase of renewable energy demands a lot from existing electricity networks and their operators. It often turns out that limited (connection) capacity hinders the scaling up of sustainable electrification. There is therefore a great need for solutions that enable acceleration, where more renewable energy results in less strain on the network.
Cable Pooling with energy storage accelerates the growth of renewable energy solutions
Cable Pooling builds on this and makes sharing scarce network connections on an increasingly crowded electricity grid possible. Initiators of renewable energy projects have been able to use a so-called 'Cable Pooling Agreement' (CPO) for one grid connection for wind and solar farms for some time. However, more and more, wind and solar energy producers also want to work with energy storage. Against this background, Invest-NL, together with Ventolines and Energy Storage NL, has developed the new 'Cable Pooling Agreement with energy storage'. Cable Pooling with Energy Storage enables renewable energy producers to share a connection for wind, solar, and storage projects. This way, Invest-NL ensures that (integral) renewable energy solutions can grow faster and that an increasingly crowded electricity grid is used more efficiently.
L-R: Guus Dubbink (Invest-NL) and Jeroen Neefs (Energy Storage NL)
Electrification as a driver of the transition to a carbon-neutral economy
Making the transition to a carbon-neutral economy financially feasible is Invest-NL’s top priority. Electrification of energy systems using sustainable sources plays an important role in this. It requires innovation, entrepreneurship, and active involvement from many different parties across the (energy) value chain. To accelerate this transition, Invest-NL has already financed and/or made various companies and projects eligible for financing.
Read more about what we do for the energy transition.
We see that solar and wind energy producers are eager to get started with energy storage. We also see that they have many questions about how to deal with limited grid connection. Invest-NL considers it their role to assist entrepreneurs with this.
Guus Dubbinkbusiness development manager at Invest-NL
An increasing number of pioneers innovate in integrated sustainable energy solutions
Innovative companies and entrepreneurs in the Netherlands are therefore increasingly focusing on the integrated nature of future energy solutions. These pioneers create new markets and business models with their innovative solutions, but are held back by factors such as capacity limits of the existing electricity network and outdated electricity legislation. Their solutions and ambitions are often so groundbreaking, and therefore risky, that scaling up and financing become challenging.
Enabling Cable Pooling with Energy Storage can realize several benefits: sustainable energy producers can introduce new services and business models, it reduces the pressure on grid operators to realise new connections, and it enhances the resilience and efficiency of the electricity network as a whole. In other words, it creates more room for sustainably generated electricity without overloading the electricity grid.
Where Invest-NL makes a difference in this case
To further accelerate the electrification of energy systems, sharing grid connections is essential because the electricity grid is becoming congested. The Cable Pooling Agreement with energy storage offers project initiators of sustainable energy projects the necessary legal frameworks to operate with a single connection for wind, solar, and energy storage. The agreement addresses all the necessary prerequisites that need to be in place. For example, it contains provisions regarding project implementation, remuneration, the relationship with the grid operator, metering, program responsibility, decommissioning of installations, financing, and liability.
"Energy Storage NL (the association for the Dutch energy storage sector) is pleased with the new agreement. We see the Dutch electricity grid becoming increasingly congested. Therefore, we need to work towards more efficient grid usage. This cannot be achieved without the deployment of energy storage. We therefore hope that this agreement will ensure that storage technology is used even more in the Netherlands," said Jeroen Neefs.
Questions about this topic? Marinus is happy to help!
Marinus Boogert
teamlead Energietransitie
