The role of the CSP
A CSP acts as an intermediary, independent of other parties, mediating between the grid operator and large business customers. In doing so, a CSP provides congestion management services on behalf of one or more customers. For AgroEnergy, this means that if a horticulturist has the ability to use flexibility, such as solar power, turning off or on LED lighting, heat pump or e-boiler, or energy storage, the CSP can place bids on behalf of these growers when the grid operator needs more or less power.
With the CSP approval obtained, AgroEnergy is starting a pilot to see if offering flexible power through GOPACS creates earning opportunities for customers. “Through services such as emergency power and soon control power, AgroEnergy already has many customers benefiting from the increasing demand for flexible power. By exploring whether GOPACS offers those same opportunities, we continue to further develop our proposition to help growers keep their energy costs as low as possible by optimizing investments in sustainable assets such as heat pumps and LED lighting,” said Chris Feijen.
“Congestion management includes strategies and technologies that help coordinate energy flows efficiently, optimize load on the grid, and maintain stability,” says Chris Feijen, Head of Energy Management at AgroEnergy. “Successfully managing congestion is vital to maintain a reliable and resilient energy infrastructure during the transition to a more sustainable energy supply and to secure the supply of electricity to both households and companies.”
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Orders that do not directly match the trading platform but are useful for congestion resolution are passed to GOPACS. When these orders contain location-specific data and demonstrably contribute to congestion control in the power grid, the grid operators reimburse the difference between bid and ask prices (the spread). This facilitates matching and reduces congestion without disrupting the stability of the Dutch electricity grid.
Congestion management is a crucial concept in the energy industry that refers to the management of overload or congestion in energy networks. With the growing integration of renewable energy sources, such as solar and wind power, and the rise of electric heating and electric vehicles, the complexity of energy distribution is increasing. It is becoming increasingly challenging in the energy transition because of the variability and unpredictability of these new sources and demand patterns.
GOPACS represents the Dutch grid operator congestion management platform. The goal of GOPACS is to minimize congestion in the electricity grid while paying attention to the unique grid states of the grid operators and maintaining the national electricity grid balance. Although GOPACS itself is not a trading platform, it does use the already existing energy trading platforms of ETPA and EPEX SPOT. Here, purchase and sales orders are consolidated.
Energy supplier and service provider AgroEnergy has been recognized by grid operator TenneT as a Congestion Service Provider (CSP). This makes AgroEnergy a recognized provider in offering congestion management services for its customers. AgroEnergy thus strengthens its position as a flexprovider for horticulture.