Tariff Transitions
Assessing the Grid Impact of Adjusted Injection Charges for Large-Scale Producers in the Netherlands
R.W.M. Deijkers (TU Delft - Technology, Policy and Management)
Laurens De Vries – Mentor (TU Delft - Energy and Industry)
Laurens De Vries – Graduation committee member (TU Delft - Energy and Industry)
A. Correlje – Graduation committee member (TU Delft - Economics of Technology and Innovation)
E.J.R. Droste – Graduation committee member (Stedin)
M.D. Hilberdink – Graduation committee member (Stedin)
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Abstract
The Dutch electricity grid is increasingly facing challenges due to grid congestion. If left unaddressed, this could eventually lead to electricity supply disruptions, significant economic losses, and a decline in living standards. In response, the Netherlands Authority for Consumers and Markets (ACM) has proposed the introduction of injection charges for large-scale electricity producers as a potential solution to incentivize more efficient use of the existing grid infrastructure.
This study evaluates the effects of different injection charge designs on grid load and the resulting need for network reinforcement. The results were obtained by constructing a network model based on the electricity network topology of the municipality of Reimerswaal in the Netherlands. The model incorporated generation technologies such as onshore wind and solar PV, and applied a priority dispatch policy that favors local renewable electricity generation over imports from elsewhere.
In total, four injection charge variants were assessed. These include a uniform tariff based on the kWcontract and kWmax charge components, a time-dependent tariff on the same components, a uniform tariff based on kWh, and a combined variant incorporating time-dependent kWcontract and kWmax charges along with a uniform kWh tariff.
Results show that peak grid loads can be reduced by up to 35.55% when using time-dependent tariffs based on the kWcontract and kWmax components. These variants also proved more effective at reducing peak occurrences than uniform, non-time-based tariffs. While the uniform kWh-based variant marginally decreased import-related peak loads by up to 0.99%, it had no effect on injection-related peaks, making its overall impact rather limited. The combined variant yielded results similar to those of its individual components, combining injection-related peak reduction with a marginal decrease in import-related peaks.
These findings indicate that well-designed injection charges can effectively reduce peak grid load and mitigate the need for network reinforcement. However, their effectiveness depends on the specific charge design and local grid conditions. In addition, the design and implementation of such charges require careful consideration of factors beyond technical efficacy. Legitimacy, feasibility, stakeholder support, and potential economic and environmental implications must also be taken into account.