The Netherlands 115
way to stimulate solar installations. The price of solar energy varies throughout
the day, while in the system of net metering the price is fixed. There is no
incentive to use electricity at times when it would be best for the electricity
grid. Ideally, solar electricity is used when available (during sunny hours).
During these hours, electricity prices would go down because of increased solar
electricity supply. Dynamic electricity pricing could facilitate a smarter way of
using electricity so that peaks in supply are met with increased demand and
balancing issues are mitigated or avoided. Next to technical investments, this
will also require modification of the legal framework that governs the electricity
market.
In contrast to individual rooftop solar PV projects, grid operators are generally involved in the development of large- scale solar projects as they need to
arrange the necessary infrastructure (connections, cables, etc.). Network operators are obliged to connect the park to the grid when they are called upon to
do so. Grid operators interviewed expressed concern that if the recent acceleration in project applications (such as under the SDE+) continues with a high
rate of project approval, then in the short term large grid reinforcement, as well
as smart grid development, will be necessary. A very recent example concerning
the limited grid capacity came from the south- east of Groningen, where the
DSO and TSO warned that in the short term they will not be able to connect
new solar parks due to the risk of ‘electricity congestion’ in the local grid (Van
de Veen, 2018).
One way to reduce the costs of grid reinforcement, as suggested during the
stakeholder consultation for this study, is by placing solar parks in ‘grid- friendly
zones’. Two- thirds of the grid connection costs related to a new solar park could
be avoided by placing solar panels in areas where combinations with existing
connections can be established, such as large- scale rooftop projects, or next to
wind parks, industrial areas, and railways (because this infrastructure can also be
used). According to such a ‘smart design’ strategy, projects make use of alreadyexisting infrastructure. Innovations like this are, however, hampered as grid
operators are generally not considered market entities but are obliged to follow
regulations without influence on spatial planning decisions.
An efficient solution, suggested by consulted stakeholders, could be to
include a section in the SDE+ subsidy scheme saying that projects that are
planned for a grid- friendly zone (following smart design) will receive a preferential treatment and receive more support per kWh. Currently, the SDE+ is
designed in such a way that cheaper projects are granted first and generally with
a lower tariff per kWh. This disregards the cost for the grid operator.
Impact on traditional electricity producing sectors
Expanding the use of renewable energy at the expense of traditional, fossil- fuelbased energy plants may have a negative impact on the business cases of fossilfuelled power plants. Coal and gas power plants will most likely be used as
flexible power production capacity to accommodate the peaks in daily energy
way to stimulate solar installations. The price of solar energy varies throughout
the day, while in the system of net metering the price is fixed. There is no
incentive to use electricity at times when it would be best for the electricity
grid. Ideally, solar electricity is used when available (during sunny hours).
During these hours, electricity prices would go down because of increased solar
electricity supply. Dynamic electricity pricing could facilitate a smarter way of
using electricity so that peaks in supply are met with increased demand and
balancing issues are mitigated or avoided. Next to technical investments, this
will also require modification of the legal framework that governs the electricity
market.
In contrast to individual rooftop solar PV projects, grid operators are generally involved in the development of large- scale solar projects as they need to
arrange the necessary infrastructure (connections, cables, etc.). Network operators are obliged to connect the park to the grid when they are called upon to
do so. Grid operators interviewed expressed concern that if the recent acceleration in project applications (such as under the SDE+) continues with a high
rate of project approval, then in the short term large grid reinforcement, as well
as smart grid development, will be necessary. A very recent example concerning
the limited grid capacity came from the south- east of Groningen, where the
DSO and TSO warned that in the short term they will not be able to connect
new solar parks due to the risk of ‘electricity congestion’ in the local grid (Van
de Veen, 2018).
One way to reduce the costs of grid reinforcement, as suggested during the
stakeholder consultation for this study, is by placing solar parks in ‘grid- friendly
zones’. Two- thirds of the grid connection costs related to a new solar park could
be avoided by placing solar panels in areas where combinations with existing
connections can be established, such as large- scale rooftop projects, or next to
wind parks, industrial areas, and railways (because this infrastructure can also be
used). According to such a ‘smart design’ strategy, projects make use of alreadyexisting infrastructure. Innovations like this are, however, hampered as grid
operators are generally not considered market entities but are obliged to follow
regulations without influence on spatial planning decisions.
An efficient solution, suggested by consulted stakeholders, could be to
include a section in the SDE+ subsidy scheme saying that projects that are
planned for a grid- friendly zone (following smart design) will receive a preferential treatment and receive more support per kWh. Currently, the SDE+ is
designed in such a way that cheaper projects are granted first and generally with
a lower tariff per kWh. This disregards the cost for the grid operator.
Impact on traditional electricity producing sectors
Expanding the use of renewable energy at the expense of traditional, fossil- fuelbased energy plants may have a negative impact on the business cases of fossilfuelled power plants. Coal and gas power plants will most likely be used as
flexible power production capacity to accommodate the peaks in daily energy