Amsterdam wants to set up energy hub cooperative | Public Transport Magazine
The urgency to use the energy infrastructure in a leaner way is increasing by the day in Amsterdam. Smart grids and energy hubs will be able to unburden the electricity grid. It seems too difficult an obstacle, but the municipality of Amsterdam now wants to shape it.
Businesses, data centers, large amounts of new homes and facilities, electric cars and other vehicles. They all require more electricity to function. The infrastructure of Liander and Tennet can no longer cope with demand and impose electricity congestion.
Expansion of the electricity grid with extra substations, many cables and transformer houses are needed everywhere in Amsterdam, Willem van Heijningen, client and strategist at the municipality of Amsterdam, outlines the problem. So everyone look at the network operators. But with a shortage of employees at the grid operator and a long preparation time, it will take years to bring the grid up to sufficient capacity.”
“We can no longer do it,” says his colleague Naut Loots, who works at the Municipality’s Electricity Congestion Taskforce. “The ‘first come, first served’ principle is outdated. If everyone who needs power requests their own from the grid operator, we will realize a lot of empty capacity. And that the space below and above the ground is limited and we are dealing with a shortage of transport. We must have that. With energy sources you can distribute and manage better.” Energy hubs are places with a connection to the electricity grid, where energy may also be generated and stored and then distributed thinly over various functions and parties.
Naut Loots, Municipality of Amsterdam: ‘The ‘first come, first served’ principle is outdated. Otherwise we will realize a lot of ’empty’ capacity’
Benefits of energy hubs
And not only that, another major advantage of flexible energy systems is that more generated power can be used. Van Heijningen: “At the moment we are not using all the capacity that is available in the electricity network. The electricity congestion arises in part because the peak demand from users is then the capacity of the larger grid. By generating electricity at the end of the cable on the user side and making it possible to store electricity there, peak demand can be improved and extra space is provided for other electricity consumers.”
“By doing this together with more parties”, he continues, “more expansions and extensions of the required infrastructure. The current and future infrastructure can be better utilized and possible capacities at sea. It can also ensure that the dependence of parties of the grid operator and energy companies decreases. I can imagine that this can also save considerably on investments in the electricity grid. And so there is value for the cooperating users, for the grid operator and society as a whole.”
Who picks up the glove?
It is clear: the development of energy hubs can be a valuable means to place the transition from fossil to emission-free and renewable energy. But who clearly organizes? The municipality, the network operator, a transport company, the transport authority or a separate market party? Some don’t want to, others can’t, all don’t want to leave it to third parties.In the article in OV-Magazine of 29 October 2021 ‘Where past charging infrastructure in full Amsterdam?’ the problem was outlined that such a smart energy hub is technologically possible, but that solutions are still needed in the organization.
This is firstly because there is a lot of unknown what exactly the problem is and the possible solutions and secondly that there is not a single problem owner, says Rogier Pennings of Stevin. “Which party wants to organize such an energy hub? Grid operators see the problem coming, but for them the space to initiate is pretty much beaten to death. Grid operators have many other problems on their plate. So come from somewhere else. Any other party can pick up that gauntlet.”
Rogier Pennings, Stevin: There is reasonable room for initiation among network operators’
Organize cooperation
With the urgency surrounding electricity congestion at its back, the Municipality of Amsterdam is looking for a solution with partners. That seems to have been found: cooperative organization of a joint executive organization assignment. “We are now going to see whether we can organize such a cooperative for this purpose,” says Van Heijningen. “I have a lot of hope, because such an organization of good form is also being developed for business parks.”
The Municipality of Amsterdam invited parties directly involved in the issue of electricity needs around Amsterdam Central Station to further elaborate on this issue. “We went looking for an organization that could take on the implementation of an energy hub,” says Naut Loots. “Liander is the only organization with the knowledge and expertise, but is not allowed to do it. But you also want to be able to do that, but as a municipality you do not want to let it be the owner of your critical infrastructure. Because then you become dependent on that party for your business.”
No organization turned out to be able to have sufficient confidence in another. “Ultimately, those owners then came up with the idea together and that they can be executed for the implementation”. “That creates the model for a coalition of parties that has it and hires an independent party, who then builds and maintains the energy hub.” Van Heijningen continues: “It actually makes sense to leave the technology and organization to two parties. It hasn’t emerged in this world yet, but it has in other environments. Compare it to an apartment complex, where the Owners’ Association owns the elevator and hires a party to build and maintain it.”
Willem van Heijningen, Municipality of Amsterdam: ‘I am hopeful that we can organize a cooperative’
It turned out that the model does not only seem to be thoughtful for (mobility) parties around such as Amsterdam Central Station, but also for companies of homeowners. And maybe also with different different sectors. “What also turned out is that we were not the only ones who came up with this idea. They are working on ideas with companies in the port of Amsterdam and on site at Schiphol. That only strengthens us further in the idea of actually getting started,” says Naut Loots
in practice
Now to apply the concept in practice. The municipality has several locations in mind to passenger the model. Van Heijningen continues that stakeholders such as GVB, Transport Region, Liander and the municipality were involved in the co-creation and already consider the concept promising. NS and the Port of Amsterdam have also shown interest. “Many parties do feel a sense of responsibility, but do not see it as their core task. And it isn’t. That is why we are going to have conversations, and we propose an exploration to see where the urgency is greatest, the solution most common stakeholders are needed. The stations Amsterdam Central, Amsterdam Bijlmer and Amsterdam Noord are potentially interesting locations.”
Of course there will still be some obstacles, Loots acknowledges. “We have to be able to do it legally and what we still have to arrange. At some point, it also concerns risks, distribution of investments, operating costs and joint ventures.” Van Heijningen indicates that he finds it strange if there is no way to make it possible, if the benefits are great enough, also socially.” There is too much at stake.”
Coalition building
Pennings, ten slot: “The more cooperation, the bigger the pie becomes. Everyone steps into the initiative from their own scope, but the social benefits it provides are simply enormous. And it also provides financial benefits for everyone. The challenge is to surprise everyone and to arrive at the distribution key in which there is a win-win for everyone, so we will work on that. To build a happy future together.”
And so now the time has come to build coalitions of stakeholders: the coalition of the willing. When will it come? Van Heijningen: “I hope to meet with various parties in 2022 and to get them willing to work with us to find out if a similar partnership can be built up from an organizational and technical point of view.”