For an increasing number of companies, a traditional grid connection is no longer a given. In many regions, the electricity grid is at capacity, making expansion or feeding back power temporarily impossible. A block power contract — officially a time-block-bound transmission right — offers an alternative: capacity during agreed-upon hours. But what are the benefits, and what should you watch out for? In this article, we list the main advantages and risks, and explain how a smart EMS monitors the balance between flexibility and certainty.
What exactly is a block power contract?
A block power contract is an agreement with the grid operator stating that your company only has transmission rights on the electricity grid during specific time blocks. Within those hours, you can fully utilize your connection; outside of them, you cannot, or only to a limited extent. This type of contract is primarily used during grid congestion, to distribute the scarce capacity.
Companies can thus be connected or expand sooner, provided they plan their consumption within the available block hours. In essence, you share the capacity with other users who are active during a different time block.
Why do companies choose block power?
The main reason: gaining access to the grid. Where standard capacity is unavailable, block power can offer a solution. Furthermore, it fits into the broader trend towards flexible and data-driven energy management.
- Access to the grid: you can grow or electrify despite congestion.
- Lower transmission costs: by limiting hours, you pay less for capacity.
- Incentive for efficiency: companies optimize processes to better fit within block hours.
- Sustainable image: you contribute to a better utilized network and less waste.
According to TenneT helps block power to smooth out peaks and delay grid expansion without impeding economic growth.
Do you want to know how your company can use block power without risks? Discover how a smart EMS automatically keeps your consumption within the block hours while simultaneously lowering your energy costs.
What are the financial benefits of block power?
A block power contract can yield direct and indirect financial benefits. The savings depend on the sector, the type of consumption, and the flexibility in planning.
- Lower fixed transmission tariffs: you only pay for guaranteed block hours.
- Reduced connection fees: some grid operators offer reduced rates for block power implementation.
- Faster return on electrification: earlier connection leads to earlier benefits from lower energy costs per unit of production.
According to calculations by Energeia the average savings with well-aligned usage can amount to 15–25% of annual grid costs. The actual savings, however, heavily depend on the level of compliance.
What are the risks of block power?
The main downside of block power is that consumption outside the agreed hours is restricted or penalized. Without automation, this can lead to production loss or additional costs.
- Penalty risk: exceeding block hours can result in direct financial penalties.
- Operational risk: processes must be able to pause or shift to block hours.
- Dependence on planning: human errors or unforeseen situations can lead to violations.
- Limited flexibility: unexpected production peaks cannot always be accommodated.
According to Enexis good monitoring is a prerequisite: without real-time insight, it is virtually impossible to respect block limits. This is where smart technology comes in.
How does technology help mitigate risks?
A smart EMS (energy management system) prevents overruns by measuring in real-time and automatically controlling. As soon as the system detects that a block hour is ending, it reduces the power of machines, charging points, or installations. It can also pre-plan consumption within the available blocks.
- Real-time control: EMS automatically adjusts power within block hours.
- Prediction: the system recognizes patterns and predicts consumption in advance.
- Data logging: transparent registration for audits and reports to the grid operator.
- Combination with battery storage: buffer energy to use your own power outside block hours.
This way, block power not only becomes feasible but also profitable. Companies deploying EMS technology can utilize their capacity up to 30% more efficiently, according to RVO.
How does block power compare to other solutions?
Block power does not stand alone. It is one of several tools within congestion management. Depending on your situation, alternatives may be more suitable. Below is an overview of common options and their characteristics:
- Capacity Limiting Contract (CBC):
Advantages: structural discount, more flexibility in hours.
Disadvantages: permanent capacity limit, no time flexibility. - Non-firm connection:
Advantages: inexpensive access with limited availability.
Disadvantages: grid operator may temporarily refuse transport. - Block Power Contract:
Advantages: clarity on times, predictable planning.
Disadvantages: limited hours, requires precise management.
For many companies, block power is the happy medium: more certainty than a non-firm connection, but more flexible than a fixed CBC limit.
How can I apply for block power?
You can apply for block power through your grid operator. On blokstroom.nl you'll find information per grid operator on how to register for block power.
Conclusion: block power requires smart planning and smart technology
Block power contracts enable growth in areas where the grid is at capacity, but they require precision. The benefits — lower costs, faster connection, better utilized network — only outweigh the risks if you have real-time insight. With a smart EMS you maximize the use of block hours, avoid penalties, and maintain control over your production planning.
Zympler provides smart energy management software that solves grid congestion, lowers energy costs, and supports growth. We achieve this by integrating all your assets, grid connection management, and your trading and balancing strategy into one central system, which optimizes all these aspects in real-time, 24/7. This allows you to maximize the potential of your connection, achieving the most favorable financial results.
Read more in our knowledge base
Whether you're looking for concrete steps to lower your energy bill, want more control over the deployment of your solar panels, batteries, and charging stations, or want to know what new regulations are coming your way – our articles provide insights and practical tools to get started immediately.
Why are more and more companies choosing behind-the-meter batteries?
More and more companies are investing in behind-the-meter batteries. These are energy storage systems directly connected to a company's internal installation, rather than to the public grid. They offer control over peak demand, flexibility during grid congestion, and opportunities to generate revenue through trading or grid services. In this article, you'll learn why this trend is growing so rapidly, what the benefits are, and how a smart EMS makes a difference in efficiency and reliability.
How does battery storage work for businesses (technically and practically)?
Battery storage is playing an increasingly important role in the energy transition. While it was once primarily for grid operators or large solar farms, more and more businesses are now investing in their own battery systems. The technology helps to use energy more intelligently, save costs, and bypass grid congestion. But how does battery storage actually work – both technically and in practice? In this article, we explain what happens inside a business battery, how its control system operates, and what it means for your business operations.
What does a battery cost for a business (and what are the benefits)?
De interesse in batterijen voor bedrijven groeit razendsnel. Maar wat kost zo’n systeem eigenlijk, en nog belangrijker: wat levert het op? In dit artikel lees je hoe de kosten zijn opgebouwd, welke opbrengsten realistisch zijn en hoe een slim EMS ervoor zorgt dat je investering sneller wordt terugverdiend.
.svg)
.svg)
