Wholesale connection

In this text we explain in detail what a wholesale connection is, for whom it is relevant and what practical matters are involved. So you know exactly where you stand when your energy demand becomes higher than average.

What is a wholesale connection?

A wholesale connection is an electricity connection with a connection capacity of more than 3 x 80 amps. This connection is intended for situations where a lot of electricity is consumed, for example, by companies, institutions or industrial plants. The connection is connected directly to the medium-voltage grid or via a transformer station and is customized, tailored to the specific consumption and location of the user.

Unlike a standard retail connection, where energy suppliers apply standard tariffs and connections, a wholesale connection requires a specific application and is managed by the regional grid operator. Large consumers often enter into separate contracts for supply and transmission of electricity, which also take into account consumption patterns, required capacity and availability on the power grid.

Because of its greater capacity, a wholesale connection allows companies to operate in a reliable and stable manner without being limited by the capacity of a standard connection. At the same time, it also comes with obligations, such as having installations inspected periodically and submitting consumption data to the grid operator.

For whom a wholesale connection is of interest

A large consumption connection is interesting for companies and organizations with high electricity consumption that structurally exceeds the capacity of a small consumption connection. This applies, for example, to manufacturing companies using heavy machinery, distribution centers with automated systems, hospitals with a lot of medical equipment or offices with a large number of workstations and technical installations. Data centers, schools, agricultural businesses and locations with multiple charging stations also often fall into this category.

As soon as your energy demand continuously exceeds the limit of 3 x 80 amps, a high-consumption connection is not only necessary but also practical. It provides certainty about the supply capacity and prevents you from running into limits when you expand or experience peak consumption. Moreover, with a large-volume connection you can often make better arrangements about energy rates, flexibility and feed-in possibilities, which is important for companies that generate their own energy and/or use battery storage systems, for example.

Differences between small consumption connection and large consumption connection

The main difference between a small consumption connection and a large consumption connection is in capacity. A small consumption connection has a maximum connection capacity of 3 x 80 amps and is mainly used by households and smaller businesses. These connections are standard, are delivered quickly and have fixed tariffs regulated by the Authority Consumer & Market (ACM).

A wholesale connection, on the other hand, begins at connections above 3 x 80 amps. This type of connection is specifically tailored to the customer's situation and is managed through customized contracts. Here consumption is often high and fluctuating, so the cost structure and contract forms are also more complex.

Administrative handling also differs. With small users, the energy supplier usually handles all matters with the grid operator, while large users are much more likely to be in contact with the grid operator themselves about capacity, connections and extensions. Finally, large-scale consumers are often connected to the medium-voltage grid instead of the low-voltage grid, which involves technical adjustments.

Applying for a wholesale connection

Applying for a wholesale connection always goes through the regional grid operator. Because it involves customization, the application process is more extensive than for a standard small consumption connection. The first step is to map out your electricity needs, both in the short and long term.

Here it is important to provide insight into your maximum capacity, expected consumption and any peak load. Based on this, the grid operator can determine what capacity is needed and whether the current network can handle it. Want to know how companies are responding smartly to these challenges? Then read more about battery storage for businesses.

The application is followed by a technical and administrative assessment. The grid operator examines whether there is sufficient space on the electricity grid and makes a design for the connection, including the necessary infrastructure.

In some cases, grid reinforcement is required, which can lead to longer waiting times. You will then receive a quotation describing the costs, schedule and conditions. After the quote is approved, the connection is realized, which can take several weeks to months, depending on the complexity and grid capacity.

Challenges of wholesale connections

While a wholesale connection is indispensable for businesses with high energy needs, it also comes with challenges:

• Limited grid capacity: in many regions, the power grid is overloaded, putting new connections or extensions on long waiting lists.
• High connection and transmission costs: large consumers often pay significantly more for grid use and transmission, especially at peak loads.
• Lengthy application procedures: realizing a wholesale connection can take months due to technical complexity and scarce grid capacity.
• Restrictions on feed-in: feeding back self-generated energy (such as through solar panels) is not always possible due to grid congestion.
• Requirement for advanced metering: wholesale customers are responsible for installing and operating an appropriate meter capable of providing real-time data.

These challenges require foresight and smart choices when planning and managing your energy infrastructure. Those who anticipate these in a timely manner avoid surprises and ensure business continuity.

The future of wholesale connections

The energy world is in transition and that has direct implications for how we deal with wholesale connections. There is an increasing demand for power and at the same time the power grid is under pressure. To cope with these developments, innovations are taking place in several areas that will determine the future of wholesale power.

An important development is grid reinforcement: grid operators are investing in expanding the capacity of the electricity grid, although this often lags behind demand due to staff shortages and licensing processes. In addition, the role of decentralized generation, such as solar panels and on-site wind turbines, is growing.

Energy storage is also playing an increasingly important role. By accommodating peaks in consumption as well as fluctuations in supply and demand with energy storage systems, companies can manage their energy consumption and feed-in more efficiently.

Finally, smart energy solutions are becoming increasingly important. Energy management systems (EMS) allow large consumers to monitor and adjust their consumption in real time based on capacity, tariff structures or grid load.

These developments make it possible to be more flexible and future-proof when dealing with large-scale connections. Companies that anticipate this now are better prepared for the challenges and opportunities of tomorrow's energy system.

Get smart with your wholesale connection with Frax

A wholesale connection is more than a technical facility, it is a strategic part of your energy management. By being smart about your connection, you can reduce peak loads, save costs and improve the reliability of your operations. A business battery solution plays a key role in this.

Frax offers innovative large battery storage systems that help you get more control over your energy use. With our plug-and-play solutions and advanced energy management system, you can make the most of your wholesale connection. With Frax's systems, you lay a future-proof foundation for your energy management.