Dutch energy groups blast regulator’s plan to charge power producers for grid costs

Energy companies are “seriously concerned” about plans by the Netherlands Authority for Consumers and Markets (ACM) to introduce a so-called feed-in tariff that would require large electricity producers to help pay for expanding the power grid. The ACM wants to introduce the feed-in tariff in phases, at the earliest from Jan. 1, 2032.

The ACM announced Thursday it is proceeding with further development of the tariff, which would apply to producers such as solar parks, wind parks, and power plants.

The goal is to encourage producers to use the grid as efficiently as possible, so grid operators need to reinforce it less. Those savings should ultimately lead to lower grid costs for households and businesses. Currently, only electricity consumers pay those costs.

Industry group Energie-Nederland said the tariff achieves “precisely the opposite” and would cause consumers to use the grid less efficiently. “While the greatest potential lies there to actually use the grid more efficiently,” the organization said. “By shifting the focus to producers, important opportunities on the demand side to use the grid more efficiently remain largely unutilized.”

The measure would lead to additional costs and greater uncertainty for producers and investors in sustainably generated electricity, according to Energie-Nederland. The group wants the ACM to drop the plan.

The Dutch solar energy sector association Holland Solar is also unhappy with the tariff. Uncertainty around its elaboration means operators of large solar panel installations can no longer get their projects financially viable.

Holland Solar wants the watchdog and politicians to quickly provide more clarity on the introduction and elaboration of the tariff. “Without clear and stable rules, a situation threatens in which investments stall and the energy transition is delayed,” it said.