According to foreign media reports, Dutch energy storage and smart grid solutions provider Alfen announced that it is deploying a 30MW/68MWh battery energy storage project in the Netherlands, which will be put into operation later this year. This is currently the largest battery energy storage project under construction in the Netherlands.
Dutch company Alfen is active in the international energy storage and smart grid market
Alfen will provide and deploy the battery energy storage system for renewable energy developer Semper Power in a project called Pollix, located in the southwestern port of Vlissingen in the Netherlands. Both companies plan to commission the project in the fourth quarter of 2023.
This is the largest battery energy storage project under construction in the Netherlands and narrowly beat Rolls-Royce's 30MW/63MWh battery energy storage system, which was previously put into operation. Both battery energy storage projects have a duration of just over two hours.
Semper Power will be responsible for the development, financing and operation of the energy storage system, while Alfen will be responsible for the design, supply, civil engineering, installation, testing, and long-term maintenance of the project.
Alfen's Chief Commercial Officer Michelle Lesh said: "Addressing the challenges of intermittent renewable energy generation and increasing grid demand is crucial for the long-term success of the European energy transition. Battery energy storage systems like the Pollix project play a crucial role in withstanding future tests of the grid and managing its needs effectively."
The largest operating battery energy storage system in the Netherlands is a 24MW/48MWh project owned by storage developer GIGA Storage, which uses technology from power technology company Wärtsilä and was commissioned in October last year.
The demand for energy storage deployment in the Netherlands is increasing as the country deploys more wind and solar power facilities and shuts down coal and natural gas-fired power plants, which have made it difficult to operate the already congested power grid.
However, the high usage fees for energy storage projects have hindered the market's development, as energy storage projects are classified as power users, which accounts for around 60% of the operating expenses of energy storage projects, while in countries such as Germany, Belgium, and the UK, this proportion is below 10%.
Another challenge for operating energy storage projects in the Netherlands is that grid operators must consider the peak output of all generation assets when deciding whether to integrate this new asset, which means that some areas have an excess of renewable energy generation.
As previously reported by industry media, some battery energy storage integrators are exploring the possibility of signing contracts with power system operators with time-limited contracts that only allow their energy storage systems to charge or discharge at specific times.
Currently, operating battery energy storage projects can play a role in the Netherlands' 115MW Frequency Control Reserve (FCR) and 350MW Automatic Frequency Restoration Reserve (aFRR) grid ancillary services market, which can also be offered to other countries, as well as other grid services and wholesale transactions.
The fact that the first battery energy storage project in the Netherlands has a duration of just over two hours indicates that the Dutch energy storage market is moving towards commercial and energy trading models, compared to early adopters such as the UK and Germany, where most energy storage projects are still only one hour or slightly longer.
