Keywords: Congestion Management, Re-Dispatch System, Welfare Impact, Locational Marginal Pricing; Published in: YEEES seminar 2010; Publication year: 2010; Co-author 1: Hers, J.S.; Co-author 2: Ozdemir, O.; Co-author 3: Kolokathis, C.; Co-author 4: Nieuwenhout, F.; Summary: By the end of 2008, a new policy regarding grid connection in the Netherlands was announced by the Dutch Minister of Economic Affairs. The policy implied renewed access to the grid for new generation capacity in congested regions, while anticipating the establishment of a required new congestion management system by the Minister of Economic Affairs. This study analyses the new connection policy in the Dutch power market and associated models for congestion management under consideration. In the first part of this paper a quantitative analysis of the net benefits of the new connection policy in the Netherlands is presented. Net benefits are calculated as the increase of consumer surplus and producers gross margin minus the cost of congestion. For all the scenarios considered, the benefits are shown to be roughly an order of magnitude higher than the congestion costs. Hence positive net benefits are expected to result from the implementation of the new connection policy. In the second part of this paper, four alternative designs for a congestion management system as laid down by the Dutch Ministry of Economic affairs are evaluated. The assessments were based on simulations using the COMPETES model, assuming a competitive wholesale market, efficient redispatch and both nonstrategic and strategic behaviour regarding congestion management.