Giga Storage, TenneT ink pioneering contract to optimize use of grid capacity
Dutch energy storage developer Giga Storage and grid operator TenneT have concluded the very first Time-Based Connection and Transmission Agreement in the Netherlands in a bid to ensure more efficient use of the existing electricity grid.
The new type of contract, which has been developed as part of the National Grid Congestion Action Programme, allows GIGA Storage to connect its battery project – GIGA Leopard, with a power output of 300 MW and storage capacity of up to 1,200 MWh – in Delfzijl to the electricity grid.
Under the deal, Giga Storage will have the right to take electricity from the grid or feed it back in at least 85% of the time. Thereby, it will support the grid operator in relieving congestion by not charging or discharging the battery onto the grid at specific moments.
Grid bottlenecks have been a pressing concern in the Netherlands, meaning that connections with a full and fixed transmission right are not always possible. At the same time, Dutch grid operator TenneT has proposed a new contract form with lower grid tariffs for batteries and other flexible capacity, with potential discounts of up to 65%.
Last month, the Netherlands Authority for Consumers and Markets (ACM) gave the green light to time-based and time-block contracts. The former are developed specifically for large consumers without 24/7 business processes and are offered by grid operators as an alternative to the existing fixed transmission right with a benefit of a reduced transmission tariff.
‘We are all working very hard to expand the electricity grid faster, but we also need to use the grid smarter and more efficiently. Thanks to this new contract and good cooperation, it will be possible to make the best use of the space left outside ‘rush hour’ and deploy renewable electricity when there is less sun and wind available,” said Sophie Hermans, deputy prime minister and minister of climate policy and green growth.
The new agreement between Giga Storage and TenneT will start on October 1, 2025.