Players in the energy markets

We have a liberalized energy market. In other words, a market that has been deregulated and is open to competition. Producers, suppliers, and consumers are free to choose their energy providers. The idea behind this is that competition leads to lower energy prices and stimulates innovation. Grid operators are responsible for the infrastructure and ensure fair access.

This results in a complex system involving a wide range of parties that must work together—each of which, of course, is trying to turn a profit. Below is an overview of the key players in our energy system:

Manufacturer

Electricity generation

Electricity generation at a power plant. The various forms of power generation can be based on coal, nuclear, offshore or onshore wind, combined heat and power (CHP), or a steam and gas power plant (STEG). If the plant can be flexibly controlled, the producer can provide ancillary services to the grid operator.

Examples

Independent energy producers: for example, farmers with CHP systems, Vattenfall, Eneco, Essent.

Consumer

Energy consumption

Used for electricity, for example in industrial processes, for household appliances, or for generating light, heat, and other forms of energy.

Examples

(Industrial) businesses, households, municipal utilities.

Prosumer

Consumers who generate their own electricity

A consumer of electricity when self-generation is insufficient. Can feed power into the grid when self-generation exceeds consumption.

Examples

Businesses or households with their own solar panels.

Transmission System Operator (TSO)

Responsible for electricity transmission within the high-voltage grid

Uses high voltage—up to 400 kV—to transmit electricity over long distances with minimal grid losses. The TSO is responsible for balancing electricity consumption and generation on the power grid.

Example

TenneT.

Distribution System Operator (DSO)

Responsible for distributing electricity within the low- and medium-voltage grid

Distributes electricity at voltage levels ranging from 400 V to 70 kV to end users.

Examples

TenneT, Coteq, Enduris, Enexis, Liander, Rendo, Stedin, Westland Infra.

Energy provider

Electricity supply to small businesses and households

Due to the unbundling of the energy market, energy supply is now separate from grid management. This gives consumers the opportunity to choose a supplier based on rates and services.

Examples

Essent, energiedirect.nl, Oxxio, Eneco, Nuon, Greenchoice, ENGIE, Vattenfall, etc.

Accounting Manager, Program Manager (PV Party)

Ensures a balance between electricity supply and demand

Based on consumption and production data, the PV party will submit a balancing nomination to the grid operator in accordance with a forecast provided by the grid users. Each grid user must appoint a PV party to assume balancing responsibility for their connection point.

Examples

For end consumers, the supplier is responsible for balancing the grid. Larger consumers and producers usually manage their own PV systems.

Regulator

Ensures a level playing field within the free market

To prevent TSOs and DSOs from abusing their monopoly position, they are monitored by an independent regulator. This regulator also monitors consumers and producers to ensure that major players in the energy market do not manipulate prices.

Example

Netherlands Authority for Consumers and Markets (ACM) Energy.

Electricity Exchange

Exchange for energy transactions on a day-ahead and intraday basis

These exchanges were created to facilitate transparent and anonymous energy transactions. Within this multilateral platform, participants can submit bids based on supply and demand. The market operator aggregates these bids and clears them for the relevant time slot. The products offered on these markets are standard products, which ensures good pricing and liquidity.

Example

EPEX Netherlands.

Virtual Power Plant / Aggregator

Provides access to energy markets for distributed generation facilities, enabling them to offer balancing services to the grid operator.

Within its portfolio, the aggregator combines decentralized consumption and generation units. It provides balancing services to the DSO or TSO by coordinating the pool of installations. In addition, this energy from decentralized installations is traded on all relevant energy markets.

Examples

Repowered