Congestion Management in the Day-Ahead Timeframe: Lessons From the Netherlands

The decarbonisation of electricity supply through variable renewable energy (VRE) is causing increasing congestion in electricity transmission and distribution grids. Redispatching after the closure of the day ahead market has been the most common congestion management instrument. A key challenge for congestion management via redispatching is the growing scarcity of upward reserves for counter activation, as synchronously connected assets are often out of merit order during periods of high VRE output. To proactively manage congestion before the day-ahead market closes, the Netherlands introduced the dispatch limitation product (DLP) in 2022. Since its introduction, the DLP has been widely contracted and used. Furthermore, starting in 2025, Flexible Connection Agreements (FCA) will be introduced, providing additional mechanisms for congestion management. This paper presents key lessons from the Dutch experience with congestion management in the day-ahead timeframe, analysing the effectiveness of these new instruments and their impact on grid flexibility and market efficiency.