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Fatima Shahid

ACM Calls for Strategic Choices in Dutch Electricity System

26.03.2025 | Dutch competition authority

The Dutch competition authority, ACM, emphasizes the need for clear decisions regarding the future of the electricity system to meet climate goals and ensure resource adequacy.


The Netherlands currently boasts one of the most reliable electricity systems globally, with a consistent supply meeting demand. However, as the country shifts towards generating more electricity from renewable sources like wind and solar, the need for alternative sustainable energy sources becomes critical during periods of low availability.

In a recently published paper, ACM highlights the importance of making informed decisions about the future of the Dutch electricity system. The authority stresses that during times when solar and wind energy are insufficient, other sustainable sources, such as CO2-free power plants, energy storage solutions, and international supply agreements, must be in place to ensure reliability.

While the Netherlands is not expected to face immediate power shortages, ACM calls for a public debate on the desired level of resource adequacy. Key questions include whether electricity should always be available for electric vehicle charging and the acceptability of temporary power outages for businesses and households.

Manon Leijten, a board member of ACM, emphasizes the need for society to determine the level of resource adequacy it desires, how to organize it, and the costs associated with preventing shortages. The paper aims to contribute to this essential discussion.

ACM outlines various solutions to maintain a reliable power supply, with system flexibility playing a crucial role. This flexibility can be achieved through energy storage or agreements with high-consumption businesses to adjust their usage when necessary. Such measures not only enhance resource adequacy but also help alleviate grid congestion.

Additionally, ACM discusses the potential implementation of a capacity mechanism, which would compensate energy producers, storage companies, or flexible users for maintaining available capacity. While this approach has been adopted in several European countries, ACM cautions that it comes with both advantages and costs that must be carefully evaluated.

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