The Netherlands Authority for Consumers and Markets (ACM) has concluded that significant investments and additional policies are essential to provide sufficient flexibility in the electricity system for the next ten years. This conclusion is based on the Flexibility Needs Assessment (FNA) conducted by Dutch transmission system operator TenneT and distribution system operators.

Flexibility is crucial for maintaining a balanced electricity system, especially with the increasing production from renewable sources like wind and solar energy. ACM has previously implemented measures to promote flexible grid utilization, including tariff incentives and new contract types for large battery systems.

The assessment indicates a growing need for flexibility on TenneT’s high-voltage grids until 2035. While businesses are expected to invest in flexibility, particularly in large battery systems, it remains uncertain if this growth will materialize in the coming years.

The Ministry of Economic Affairs and Climate (EZK) has six months to establish a flexibility goal based on the assessment, which could lead to new policies aimed at removing barriers or introducing subsidies for non-fossil flexibility. This assessment will also assist market participants in making informed investment decisions.

ACM has approved the assessment but has advised system operators to enhance their overview of flexibility needs by providing a more comprehensive and substantiated analysis. ACM plans to collaborate with market participants and system operators to discuss potential improvements, with a Flexibility Needs Assessment to be conducted every two years moving forward.