Congestion Service Provider (CSP) in Logistics: What Does Flexibility Earn You?

Electrification is changing how depots operate

Electrification in logistics is gathering pace. Charging infrastructure, electric trucks, and heat pumps are becoming part of daily operations, while the electricity grid in many areas is already running close to its limits.

That is where a congestion service provider becomes relevant for logistics operations. Grid operators and regulators are actively pushing towards flexibility: companies that can adjust their energy consumption over time help absorb peaks and make better use of the existing grid. For large-scale connections above 60 MW contracted transport capacity, offering flexibility is already mandatory — or companies must demonstrate why it is not possible.

Flexibility is no longer just an optimisation. It is becoming part of how the energy system works. And in logistics, that flexibility is often already present in the operation.

Where flexibility sits in logistics

In logistics, flexibility is not concentrated in one place. It is distributed across the energy system on site:

• EV fleets and charging infrastructure
• Electric forklifts
• Batteries and local generation such as solar
• Installations like heat pumps

The core question is always the same: which consumption or generation is not strictly time-critical? As soon as there is room to shift when energy is used or stored, flexibility exists.

How a congestion service provider turns that flexibility into revenue

To put flexibility to work on the grid, a Congestion Service Provider (CSP) is required. This is a market role officially recognised by TenneT, the Dutch national grid operator, where CSPs offer flexibility services to help manage congestion on specific parts of the grid.

A CSP aggregates flexible capacity from multiple companies and matches supply and demand on the electricity grid. When a local shortage or surplus arises, the grid operator can purchase flexibility to keep the grid in balance, specifically where it is needed regionally. Where one area has a surplus and another a shortage, flexibility helps resolve that locally.

In practice, this means consumption is temporarily shifted or adjusted within agreed boundaries. A straightforward example: starting the charging of vehicles slightly later in the evening.

The company receives a payment for that flexibility. The value is not in consuming less, but in deploying existing capacity more intelligently.

This also means existing grid connections can be used more efficiently. Many companies have reserved capacity they only need part of the time. By deploying it more dynamically, headroom is created without immediately needing to upgrade the connection. Flexibility becomes both a way to generate revenue and a way to address local congestion.

Is this relevant for your operation?

Flexibility is not immediately interesting for every site. It depends on a few things:

• Is there energy consumption that can shift in time?
• Is there sufficient scale — for example, a charging yard or multiple assets?
• Is there room within the operation to respond to signals without affecting the process?

In logistics, that is more often the case than it might initially seem, because much of the energy consumption already sits within time windows.

The first step is usually gaining insight: which assets are on site, how are they being used, and where does actual flexibility exist?

How Tibo Energy enables this

Tibo Energy helps companies gain that insight and automatically steers consumption, generation, and storage through the Energy Management System (EMS). In addition, Tibo is a recognised Congestion Service Provider, which means flexibility — where possible — can also be traded on the market.

This is currently being implemented at BAM Interflow. Tibo also supports multiple clients with CBC-T contracts.

“What makes this interesting is that you are not looking at a single site in isolation, you are looking at the grid as a whole. By smartly matching supply and demand, you can deploy flexibility exactly where it is needed at that moment.” — Jeroen Althusius, CGO Tibo Energy

Want to know what flexibility could mean for your operation? We help you map your energy use and assets and show you what is realistically possible.