The customer as key in congestion management: a new customer compass for flexibility at Alliander
Challenge
The energy transition is putting heavy pressure on the electricity grid. Wholesale customers want to become more sustainable, but are increasingly running into grid congestion. Expansion of the grid takes years, so more innovative use is necessary. Alliander saw opportunities in flexible transmission rights but lacked insight into who their customers are, what they can do, and under what conditions they are willing to cooperate.
Result
Together with nlmtd, Alliander developed a data-driven and behavior-based segmentation of wholesale customers. This led to six archetypes and a clear picture of needs, flexibility, scope, and preconditions. These insights now form the basis for a new domain vision and for developing flexible contract forms.
Customer
Alliander is one of the largest grid operators in the Netherlands and is responsible for a reliable, safe, and future-proof electricity network.
Challenge
Congestion on the grid requires customer-focused flexibility
The Netherlands is rapidly electrifying. Demand for capacity is growing faster than grid operators can add. “We are in a situation where customers want to become more sustainable, but the grid cannot always follow that pace,” says Erik Groenenberg, Product Owner within Alliander’s Innovation Hub. “That requires smart cooperation.“
Nationwide (LAN) developed four concepts for flexible transmission rights. Alliander was keen to test these with customers but soon discovered a lack of insight into customer needs. “We realized: before we validate anything, we need to understand for whom we are actually doing it,” says Erik. This was also clear to nlmtd. Nick: “If you want to test a solution without knowing what types of customers there are, you’re comparing apples to oranges. You have to see patterns before you can build.”
The existing sector classification proved insufficiently predictive of flexibility. A bakery and a paper mill look entirely different on paper, but can be surprisingly similar in terms of flexibility. Or not.
Flexibility only works when it's a two-way street. Thanks to this project, we see where customers experience space and what we need to adjust to make that space possible.
Deep dive into the process: from assumptions to archetypes
1. Qualitative research: understanding what is really going on
In partnership with the innovation hub, nlmtd conducted a series of in-depth interviews with a range of large-scale consumers. Not with a pitch, but with questions such as:
What do you use electricity for?
What happens when that capacity is temporarily lacking?
Do you want and can you manage consumption?
What do you expect from your grid operator?
Because regular channels for customer dialogue were not yet established, the team took a pragmatic approach: through networking, warm contacts, and, where necessary, apologizing afterward rather than seeking permission in advance.
Nick: “We soon discovered that price is hardly leading. For customers, the primary process is sacred. Flexibility is possible, but only if they maintain control and know where they stand.”
2. Design thinking & analysis: from raw insights to patterns
Two key questions recurred in the interviews:
Can customers deliver flexibility?
Do they want to?
By combining these axes, nlmtd and Alliander developed six archetypes, ranging from the trader (actively steering on energy prices) to the enforced sustainer (no choice, but impact).
Surprisingly, the largest group was the “wait-and-see co-movers”: customers who do not experience a problem themselves and are pretty willing to co-move, but only when they understand that there is room on the grid and retain some control over the terms.
3. Quantify with data
The archetypes were then cross-referenced and enriched with existing customer surveys. A cluster analysis of existing data finally showed Alliander the size of each group and how the archetypes relate to one another. Over 50% of respondents fell into the profile of the expectant compliant.
Erik: “The data showed that the willingness is there. Just not in the way we were communicating with customers until now.”
4. Internal anchoring: show, don’t tell
In a technically driven organization, new insights often get stuck in documents. That’s why the team deliberately chose a tangible approach:
Mock-ups in interviews and internal demos
Visual archetypes
Bi-weekly showcases
Actively involving domain teams
The effect? A shared language and recognition. Teams no longer spoke in sector codes, but in archetypes.
Result
A new compass
The approach provided Alliander with a series of concrete results:
An inspiring, shared vision of the end goal, to base choices on and motivate with.
Six distinct big business archetypes, based on behaviors and capabilities.
A shared language within Alliander for conversations about flexibility (“Is this a wait-and-see co-maker or a trader?”).
Better segmentation. The archetypes are included in Alliander-wide segmentations and inform policy.
New building blocks for propositions. Understanding which conditions (such as maturity, peak capacity periods, and transparency) are valuable.
Clear customer needs. Transparency about grid space proves more valuable than financial incentives.
A new view of roles. From transmitter to collaborative partner.
This research provided something that didn't exist before: a shared picture of our customers and their needs. That is the basis for all the innovations that follow.
Conclusion
Foundation for customer-oriented flexibility
The research project forms the foundation for a new way of working within Alliander. Innovation is no longer just about technology or regulations, but about understanding customers and their primary processes. By developing archetypes and focusing on needs, Alliander now has a compass to create flexible contracts and solutions more effectively.
Next steps
Alliander is now working on the next phase, in which the insights from the archetypes will be translated into new propositions for wholesale flexibility.
The priorities:
- Validating flexible bundles. Contract forms with durations and specific peak times, tested at Waternet, among others.
- Elaborating on Tetris cubes. Building blocks for contracts that can be deployed modularly by archetype.
- Use of archetypes in policy and decision-making. Integration into the domain vision and future innovation pathways.
Want to know more? I worked on this!
