News item | 17-03-2023 | 5:16 pm
The government is today presenting an additional prioritization framework for investments in the expansion of the power grid. With this assessment framework, expansions with a major social impact are given more priority in the investment plans of grid managers and realization of projects by governments. With this, the government wants to ensure that energy infrastructure projects that are important for the energy transition, such as the connection of offshore wind farms and large network expansions to make industry and homes more sustainable, can continue at a rapid pace.
When determining the sequence of expansion investments, network operators take into account technical, economic and social factors. Such as the safety and security of supply of existing power grids. The prioritization framework is an addition to the existing criteria and makes it possible to prioritize energy infrastructure projects that are important for making the Netherlands more sustainable. The framework has been designed in close cooperation with network operators and regulator ACM.
MIEK projects central to approach
The prioritization framework is aimed at giving more priority to energy infrastructure projects from the Multi-year Infrastructure Energy & Climate Program (MIEK). All potential MIEK projects are carefully assessed for future-proofness, urgency, scale level and social importance. In addition to the already existing national MIEK, the first Provincial MIEKs will soon be delivered. These are aimed, among other things, at making housing construction more sustainable, the local heat transition, sustainable generation, electric transport and making the agricultural sector and industry more sustainable.
Minister Jett (Climate and Energy): “With the prioritization framework, we ensure that projects that are important for making the Netherlands more sustainable can continue as quickly as possible. At the same time, prioritizing is not a long-term solution for the full power grid. That is why the government, grid operators, ACM and market parties are working in various ways to increase the space on the power grid as much as possible. By upgrading the electricity grid more quickly, with new regulations, by stimulating smarter use of the electricity grid and encouraging more flexible energy consumption.”
The prioritization framework concerns investments in the expansion of the electricity grids, such as substations and cable connections. The framework is not about the order of connection of individual customers to the network. The latter is implemented by network operators under the supervision of ACM via the principle of “first come first serve”. ACM recently indicated that it wants to give network operators room to give priority in congestion areas to individual projects that help to reduce congestion or to projects with a social function.
Prioritizing helps to make choices, but does not solve the scarcity. The translation from prioritizing to actual acceleration of projects requires commitment from all parties involved. Grid operators translate MIEK projects as well as possible into their investment plans. Municipalities and provinces are going to work on accelerated realization of projects.
Part of a wider range of actions
The prioritization framework is part of a broader approach to the development of infrastructure for sustainable energy. Including the National Grid Congestion Action Plan to create more space on the power grid in the short term and the National Energy System Plan on the development of the energy system of the future.
Application in the next Investment Plan 2024
A Ministerial Regulation will make it possible for network operators to apply this prioritization framework directly in the next investment plan in 2024. The prioritization framework will ultimately be included in the new Energy Act.
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