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Ensuring connection to the grid

An obligation in law on the appropriate body (such as the distribution system operator or transmission system operator) to connect eligible plants up to the grid, is fundamental.

To connect to the regional or national electricity grid, the project developer must normally apply formally to the local distribution network operator, who will have to make a connection offer. This generally includes information about the work involved in physically connecting to the grid. Read more about the costs of connecting.

The legal obligation to connect can take various forms, such as a simple obligation to connect, a priority obligation to connect, and an immediate and priority obligation to connect; though sometimes it depends on an agreement.

For example:

  • China's FIT law imposes obligations on grid operators, supplemented in guidelines
  • EU law requires Member States to guarantee transmission of electricity from renewable sources, allows them to require priority access, and requires priority dispatch of the electricity
  • Germany's law imposes an immediate and priority obligation, and
  • priority rights of grid access and connection are given to producers in Spain.

There are also examples of what we do not consider to be good provisions. A good FIT law does not make supply of electricity from renewable energy sources dependent on transmission constraints, as the provisions in Ontario do.

China

English

Renewable Energy Law 2005, Article 14 provides that: 

Grid enterprises shall enter into grid connection agreement with renewable power generation enterprises that have legally obtained administrative license or for which filing has been made, and buy the grid-connected power produced with renewable energy within the coverage of their power grid, and provide grid-connection service for the generation of power with renewable energy.

Management Guidelines, Clause 11 provides that:

Power grid enterprises should vigorously undertake power grid design and research according to the planning requirements, and conduct power grid construction and renovation based on the progresses and needs of renewable energy power generation projects to ensure supply of electricity to power grids at full load. 
简体字

2005年《中华人民共和国可再生能源法》第14条规定:

电网企业应当与依法取得行政许可或者报送备案的可再生能源发电企业签订并网协议,全额收购其电网覆盖范围内可再生能源并网发电项目的上网电量,并为可再生能源发电提供上网服务。

《可再生能源发电有关管理规定》第11条规定:

第十一条 电网企业应当根据规划要求,积极开展电网设计和研究论证工作,根据可再生能源发电项目建设进度和需要,进行电网建设与改造,确保可再生能源发电全额上网。

EU

English

Directive 2001/77/EC, Article 7.1 provides that:

Without prejudice to the maintenance of the reliability and safety of the grid, Member States shall take the necessary measures to ensure that transmission system operators and distribution system operators in their territory guarantee the transmission and distribution of electricity produced from renewable energy sources. They may also provide for priority access to the grid system of electricity produced from renewable energy sources. When dispatching generating installations, transmission system operators shall give priority to generating installations using renewable energy sources insofar as the operation of the national electricity system permits.

Germany

The German experience with this provision is instructive and perhaps provides lessons for other countries.

English

Renewable Energy Sources Act 2004, Article 4(1) provides that:

(1) Grid system operators shall immediately and as a priority connect plants generating electricity from renewable energy sources or from mine gas to their systems and guarantee priority purchase and transmission of all electricity from renewable energy sources or from mine gas supplied by such plants. (...) Notwithstanding Article 12(1), plant operators and grid system operators may agree by contract to digress from the priority of purchase, if the plant can thus be better integrated into the grid system. When determining the charges for use of the grid, grid system operators may add any costs incurred in accordance with a contractual agreement pursuant to the third sentence above, provided that such costs are substantiated.
Deutsch

Gesetz für den Vorrang Erneuerbarer Energien 2004, § 4(1) lautet:

(1) Netzbetreiber sind verpflichtet, Anlagen zur Erzeugung von Strom aus Erneuerbaren Energien oder aus Grubengas unverzüglich vorrangig an ihr Netz anzuschließen und den gesamten aus diesen Anlagen angebotenen Strom aus Erneuerbaren Energien oder aus Grubengas vorrangig abzunehmen und zu übertragen. ... Unbeschadet des § 12 Abs. 1 können Anlagenbetreiber und Netzbetreiber vertraglich vereinbaren, vom Abnahmevorrang abzuweichen, wenn dies der besseren Integration der Anlage in das Netz dient. Netzbetreiber können infolge der Vereinbarung nach Satz 3 entstehende Kosten im nachgewiesenen Umfang bei der Ermittlung des Netznutzungsentgelts in Ansatz bringen.

Spain

English

Royal Decree 661/2007, Article 17 provides that:

[T]he operator of production plants covered by the special regime shall have the following rights:
a) Parallel-connect their generating unit or units to the electricity distribution or transmission company’s network.
b) Transfer to the system their production or electrical energy surpluses through the electricity distribution or transmission company provided that it is technically possible for the network to absorb those surpluses.
c) Receive for the sale, total or partial, of the net electricity generated ...  the remuneration laid down in the economic regime provided for under this Royal Decree...
d) Sell all or part of the net production through direct lines.
e) Priority in access and connection to the electricity grid under the terms established in annex XI of this Royal Decree or under the norms replacing it. 
Español

Real Decreto 661/2007, Artículo 17 establece que: 

. . . [L]os titulares de instalaciones de producción acogidas al régimen especial tendrán los siguientes derechos:
a) Conectar en paralelo su grupo o grupos generadores a la red de la compañía eléctrica distribuidora o de transporte.
b) Transferir al sistema a través de la compañía eléctrica distribuidora o de transporte su producción neta de energía eléctrica o energía vendida, siempre que técnicamente sea posible su absorción por la red.
c) Percibir por la venta, total o parcial, de su energía eléctrica generada neta . . . la retribución prevista en el régimen económico de este real decreto.  . . .
d) Vender toda o parte de su producción neta a través de líneas directas.
e) Prioridad en el acceso y conexión a la red eléctrica en los términos establecidos en el anexo XI de este real decreto o en las normas que lo sustituyan.

Ontario

Ontario's Renewable Energy Standard Offer Program 2006, section 1.2 offers an example of what we do not consider to be a good provision:

Applicants are cautioned that certain areas of the transmission grid are limited in their ability to accept incremental power. For this reason, the OPA may be required to restrict or decline project applications in certain designated areas.

The rules establish a complex system under which the right to connect depends on whether the producer's project is based in a particular zone. The relevant provisions, in section 4 of the Standard Offer Program, are included almost in full below, in order to illustrate what a good FIT law should NOT contain:

4.1...Subject to the exceptions described in Section 4.2 below, the OPA will impose limits on the approval of Applications in certain designated areas as follows:
(a) "Green Zones" are areas designated by the OPA as being locations where no transmission constraints have been identified. Applications for Projects in areas designated on the Website as "Green Zones" will not be rejected by the OPA on the basis of transmission constraints.
(b) "Yellow Zones" are areas designated by the OPA as being locations where existing or potential transmission constraints have been identified and where certain limitations on new capacity may be required. An Application for a Project in a Yellow Zone will not be accepted unless:
(i) the Gross Nameplate Capacity of the Project, in combination with the Gross Nameplate Capacity of all other Projects which have previously been accepted in such Yellow Zone is less than the available threshold capacity in such Yellow Zone; and
(ii) the Gross Nameplate Capacity of the Project, in combination with the Gross Nameplate Capacity of all other electricity generation facilities ranking ahead of the Project in the relevant connection queues, is less than the available threshold capacity in such Yellow Zone. Applications for Projects in areas designated on the Website as "Yellow Zones" may be rejected once the OPA has accepted a number of Projects under the Program which, when connected, would cause certain threshold capacity limits to be reached, after which such Yellow Zones will be redesignated as "Orange Zones" ... 
(c) "Orange Zones" are areas designated by the OPA as being locations where significant transmission constraints have been identified. Applications for Projects in areas designated on the Website as "Orange Zones" will not be accepted, subject to the exceptions described below.
4.2 The following exceptions shall apply to the designated zone system described above:
(a) An Application which relates to a Project which has already connected to a Distribution System and has already attained Commercial Operation, or has an executed Connection Cost Agreement with an LDC will not be rejected on the basis of transmission constraints, even if the Project is located in a Yellow Zone or an Orange Zone at the time of the Application, provided that Commercial Operation or the execution of a Connection Cost Agreement was attained prior to 12:01 am on November 8, 2006.
(b) An Application which relates to:
(i) a Project with Gross Nameplate Capacity of 10 kW or less; or
(ii) a Farm-Based Project with a Gross Nameplate Capacity of 250 kW or less; will not be rejected on the basis of transmission constraints, even if the Project is located in a Yellow Zone or an Orange Zone, unless:
(iii) Applications for other such Projects which have, in the aggregate, Gross Nameplate Capacity of 10,000 kW or more have already been accepted by the OPA in the same Yellow Zone or Orange Zone; or
(iv) the Applicant for a Farm-Based Project or a Person not at Arm's Length to the Applicant for a Farm-Based Project has submitted one or more Applications for one or more Projects located in the same Yellow Zone or Orange Zone which, in combination with the relevant Project, in the aggregate, Gross Nameplate Capacity exceeding 250 kW.
4.3 The designation of areas as Green Zones, Yellow Zones and Orange Zones will change from time to time following periodic reviews by the OPA in consultation with LDCs, Hydro One and the IESO and will be made available on the Website.

Include this feature in your proposed law

How do I compile my proposed law?

Here you can choose the draft sample text provided for ensuring connection to the grid (Option A) or choose to draft your own text offline (Option B).

If you choose Option A, the text provided will appear as section 5(1) in your proposed law document with the section number and title. Terms in the text which have been defined appear in bold, and will automatically appear in the Definitions section at the end of your document.

If you choose Option B, the text in square brackets will appear in section 5(1) of your document with the section number and title.

 
5Grid connection, reinforcement and costs
Option A
(1) Upon the written request of an Eligible Producer, the Grid Operator shall immediately connect his Eligible Plant to the electricity grid and as a priority.
Option B
(1) [You have chosen not to use the draft sample text provided for ensuring connection to the grid. You may insert your own text here after downloading.]

this is Option Z, normally would be hidden


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