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Title:
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Temporary tasks for grid operators and transfer to commercial parties; which conditions are needed? An assessment framework with regard to energy storage
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Author(s):
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Published by:
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Publication date:
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ECN
Policy Studies
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13-11-2014
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ECN report number:
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Document type:
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ECN-N--14-028
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External memo
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Number of pages:
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Full text:
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5
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Download PDF
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Abstract:
In EZ (2014c) the Minister of Economic Affairs expresses his intention to ‘expand the new law to include a basis which, by means of an Order in Council, enables assigning additional tasks to grid operators for a limited period of time in the framework of the energy transition, for example in the field of energy storage’. ‘Points of departure are that these tasks need to be directly related to the grids, must be regulated (fixed tariffs), should not be socialised automatically, and must not result in a legal monopoly, but also allow market parties to address this task.’
This intention resulted from an elaborate (internet) consultation procedure with stakeholders (EZ, 2014a; EZ, 2014b) in which the organisation of the power sector and tasks of the grid operator therein was one of the topics addressed. Moreover, the regulatory authority ACM (Authority for Consumers & Markets) consulted stakeholders about Sustainability in Energy Regulation (ACM, 2013b; ACM, 2014), also addressing the division of roles among the grid operators and commercial parties.
This discussion is also taking place at the European level. On assignment of the European Commission, DG Energy, ECN and Ecorys (2014) have examined five Smart Grid services to find out to what extent a role for DSOs or market parties is obvious based on monopolistic and competitive characteristics of the services. With regard to charging points for electric vehicles, it was advised that if DSOs are to take on this role, it should only be done on a temporary basis and there should be a clear exit strategy. The responses to this study showed that there is a need for indicators to establish in which cases a temporary task for grid operators can be left to the market. During the research, however, it became clear that the transfer of a temporary task from grid operators to the market cannot be separated from the considerations that surround the allocation of all tasks, for a definite or for an indefinite period, to either commercial parties or grid operators. Therefore, this note aims to find answers to the following questions: When is it useful to allocate a (temporary) task to grid operators?; When can grid operators transfer temporary tasks to the market?; And which indicators can be used to establish the latter for the energy storage case?
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