MODES: an energy market in tune with the changing energy system

How can the Dutch energy market be organised in order to align with the changing energy system? This is a central question within the project MODES (Market Organisation of the Dutch Energy System).

Greenhouse gas emissions in the Netherlands must be reduced by 55% by 2030 compared to 1990 levels. By 2050, we aim for net-zero emissions. How we need to change the energy system to achieve this, is outlined in the National Energy System Plan. This plan defines the pillars of a sustainable energy system for the Netherlands.

Other sources, other systems

A significant shift in the energy market is the move from fossil fuels to renewable energy sources. According to current plans, a large portion of these renewables will come from the North Sea. Another shift is that energy services are becoming more intertwined. The energy market was traditionally 'divided' into segments for heat (gas), transport (petrol, diesel), industry (coal), and electricity (coal and gas). In the future, electricity will also supply energy for heating and transport. This intertwining requires a different market organisation.

Keeping a balance of supply and demand

We also face the challenge that renewable energy sources have a variable supply, as this is determined by weather conditions. The supply doesn't always match energy demand. To keep supply and demand balanced on the market, the supply of energy has to be distributed over time. This can. for example, be realised by storage in batteries or by turning it into hydrogen. We also expect consumers to be increasingly flexible in their energy demand to keep the market in balance. This can even yield new revenue models for companies.

Shaping a new market organization together

We need to arrange all of this through a new market organisation for the energy market. These kinds of market design questions are central to the MODES (Market Organisation of the Dutch Energy System) research project. This project was initiated by the Dutch government and Topsector Energie via NWO and awarded to a Dutch research consortium led by TU Delft. It involves collaboration with dozens of parties, including Hanze University of Applied Sciences.

The role of Entrance

The role of Entrance within this project is to establish a connection in practice. Toexamine with both residents and businesses how to deal with the future market system. Together with companies we look into, for example, the possibilities of dynamic energy contracts and ways to store energy in batteries or turn it into hydrogen. Through a consumer panel we examine how citizens could change and adapt.

The results of this project are scientific supported recommendations about the way the market could be organised, both short- and long term.