Quantitative assessment of SHIFT

SHIFT is a strategic exploration by Alliander Innovatie into an innovative way of making better use of the electricity grid. The central idea is that parties have access to a limited amount of fixed transmission capacity (a fixed grid capacity allowance), while being able to buy or sell additional transmission capacity on an hourly basis through a local market. This creates a price for grid capacity and a strong incentive to use flexibility.

CE Delft investigated how the SHIFT market could operate, how prices would be determined and what effects it would have on one representative mixed-use industrial estate. Legal, behavioural and organisational analyses and further development of the SHIFT concept fall outside the scope of this study.

Key findings

• SHIFT can accommodate the expected increase in electricity demand within the existing infrastructure, provided that businesses make use of flexibility. Without SHIFT, 22–27% of electricity demand on the industrial estate could not be met.
• SHIFT enables better use of the grid infrastructure by limiting peak loads while increasing average grid utilisation. Without SHIFT, electrification would not be possible and/or peak loads on the industrial estate would increase.
• SHIFT prices are determined by the availability of flexibility, local grid capacity and the costs of demand curtailment. Prices range from €0.00 to €10 per kW.
• SHIFT leads to greater variation in grid costs between businesses, depending on their electricity demand and flexibility.
• Grid operator revenues depend heavily on the design of the fixed grid capacity allowance and become more volatile when SHIFT is introduced.
• The effects on investment certainty and business behaviour remain uncertain and have only been explored to a limited extent in this study.