German-Dutch grid integration produces millions of euros in savings
- Market for consumption and production of electricity now integrated
- Transpower acquisition yields further benefits, following the combination of emergency capacity and savings through economies of scale in procurement processes
- Consumers and businesses save millions of euros thanks to lower costs
31-01-2012
As of 1 February 2012, the Dutch part of the TenneT grid will join a German initiative that aims to compensate the imbalances that arise every day on the high-voltage grid. The Dutch-German collaboration will yield efficiency improvements that can result in annual savings towards ten million euros, benefiting consumers and businesses alike.
The International Grid Control Cooperation (IGCC) is an organisation of German origin which aims to provide real-time compensation for the differences (known as ‘imbalances’) that exist between the amounts of electricity consumed and produced by Transmission System Operators (TSOs). These imbalances are compensated through a system that automatically exchanges the surplus of one TSO for the shortage of another. This enables TSOs to use less regulating and reserve capacity to compensate surpluses and shortages in their own markets. The benefit to society can run to the tune of ten million euros a year thanks to reduced purchasing costs.
Savings in Germany already total 200 million euros
The imbalance compensation system has already produced total annual savings of 200 million euros in Germany, where the grid is operated by four TSOs (50Hertz Transmission GmbH, Amprion GmbH, EnBW Transportnetze AG and TenneT GmbH). The addition of the Dutch part of the TenneT grid to the IGCC will result in a more efficient balance between supply and demand.
“TenneT’s participation in this initiative demonstrates a further benefit of our takeover of the German grid operator transpower in 2009,” said TenneT CEO Mel Kroon. “The acquisition has resulted in other synergy benefits over the past few years. TenneT began combining its reserve capacity last year and the company’s growth has produced significant economies of scale in our procurement processes. These steps are all part of our aim to play a leading role in the creation of an integrated electricity market in north-west Europe.”
