Peak avoidance for large consumers: a guide for businesses
Direct answer
Peak avoidance for large consumers means that a business with a large electricity connection uses or feeds back less power during busy grid moments, so the network is not overloaded. The large consumer agrees on this with the network operator and receives compensation or a tariff benefit in return. It is a form of congestion management.
- Clear definition
- Data-driven assessment
- Risks and opportunities visible
- Practical next steps
Peak avoidance for large consumers: scattered information versus Energy Intelligence
The Dutch electricity grid is reaching its limits in more and more places. At peak moments there is not enough transport capacity for every business at once. Instead of waiting years for a heavier grid, the network operator asks large consumers to spread their consumption smartly. Think of a manufacturer that moves an energy-intensive process to the night or the weekend, when the grid is quieter.
- You shift your electricity use away from the grid's peak moments, usually weekday mornings and early evenings.
- You record this in a contract with your regional network operator, such as a capacity control contract or a flexible contract with an alternative transport right.
- In return you receive compensation or a discount on your network costs, and sometimes faster access to a connection.
Insight
Traditional approach
Information is scattered across portals, documents, invoices or separate spreadsheets.
Modern approach
Data, context and interpretation are brought together into a clear decision picture.
Decision-making
Traditional approach
Choices are made based on averages, assumptions or occasional analyses.
Modern approach
Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.
Follow-up
Traditional approach
Actions often stay non-committal or disappear into separate reports.
Modern approach
Follow-up actions, monitoring and reporting are linked to the same energy data.
How does it work?
Peak avoidance is part of congestion management: spreading busy grid moments more evenly to prevent overload. The network operator distributes the scarce capacity through agreements with connected parties. For large consumers this happens mainly with two instruments. Under congestion management, the operator asks you to temporarily use more or less power at certain moments, in exchange for compensation. In addition there are flexible contracts under which you have no fixed transport right, but accept that you use less or no power at busy moments. This way the operator shares the available capacity fairly among all connected businesses.
- The operator first investigates per area whether congestion exists and publishes a report about it.
- Congestion management buys time until the grid has actually been reinforced.
- The capacity control contract and the alternative transport right are the common forms for large consumers.
- You provide flexibility; the grid stays within its limits.
Which agreements can you make?
With a capacity control contract you agree to adjust your power at announced moments, in exchange for compensation for that flexibility. This contract replaces the older capacity restriction contract and lets you both lower and raise your consumption, depending on what the grid needs. Another form is the alternative transport right: you receive no fixed transport right, but accept a flexible contract under which you use or feed back less or no power at certain moments. In return you get a discount on your network costs and often faster access to a connection. This can allow businesses to connect in an area where the grid is full.
- A capacity control contract provides compensation for adjusting your power at busy moments.
- An alternative transport right gives a discount on network costs in exchange for flexibility.
- Flexible contracts can offer faster access to a connection in a congested area.
- The ACM and the network operators have made binding agreements to offer these contracts more widely.
When do you encounter this?
You encounter peak avoidance as soon as you have a large electricity connection in an area with grid congestion, or apply for a new or heavier connection there. The ACM and network operators have agreed that the use of congestion management increases significantly this year and that more businesses can obtain flexible contracts. In addition, the ACM is introducing time-based transport tariffs: using the grid during off-peak hours becomes cheaper, while use during peak hours is charged more heavily. That also makes off-peak consumption financially attractive.
- Especially with a new, heavier or existing large-consumer connection in a congested area.
- The operator approaches you actively when your flexibility helps relieve the grid.
- Time-based transport tariffs make off-peak hours cheaper and peak hours more expensive.
- The network operators publish progress through quarterly dashboards.
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