Obligation to connect
On the 1st of January 2010 a change in the Energy Act entered into force implying a general obligation for all grid owners to give connection to the grid.
All companies that own grid components shall have a trading license. For all license holders applies a general obligation go give access to the existing grid on non discriminatory and unbiased terms. The obligation to give connection applies to the existing grid as far as it does not affect the operational security of the grid.
In the case there is not sufficient capacity in the existing grid the obligation to connect implies that all affected license holders must carry out necessary investment in grid capacity to be able to give connection. The obligation to invest applies for all those holding an area and/or building license.
The obligation to connect implies that if it is not possible to maintain operational security when connecting a new producer to the existing grid, the license holder has an obligation to apply for a building license and carry out any necessary investments.
When investments are necessary to give connection, all affected license holders/grid owners are obliged to plan, apply for necessary licenses and invest without unfounded delay.
As a general rule, in the case grid investments are necessary, connection should first take place after the investments have been carried out. It is not allowed to enter into permanent agreements on restrictions in production as an alternative to grid investments.
The grid owner has an obligation to plan
The grid owner that receives a request to connect shall free of cost indicate a point of connection to the existing grid, and clarify if investments are necessary to give connection.
The owner of the grid that gives connection is responsible for contacting adjacent grid owners and to clarify if there is a need for grid investments. The adjacent grid owner is thus responsible to plan, apply for a license and carry out the investment.
When to connect
Connection to the grid shall only be carried out when it does not affect the operational security of the grid. This condition applies to all grid installations, both locally and nationally, affected by the connection.
Provisional agreements
In some cases it may be possible to give connection and still maintain operational security even if there is not sufficient grid capacity, if the producer and grid owner can come to a provisional agreement on restrictions on the production.
Grid owners that choose to enter into such agreements, are obliged to ensure that the agreement does not come into conflict with the requirement of non discriminatory and non biased access to the grid. The grid owner must thus take into consideration that different restrictions for different producers may give rise to practical problems for the operation of the grid.
The production unit may alternatively enter into a provisional agreement with an existing producer supplying regulating power. The grid owner must consider if the agreement is sufficient to maintain operational security. The grid owner however does not have the opportunity to demand a reduction from the existing producer.
The possibility to ensure an earlier connection by entering into a provisional agreement can nevertheless only be done when it is guaranteed that the necessary grid investments will come into place. This implies that final building licenses must be in place and an investment decision must have been taken.
The grid owner has no obligation to give earlier connection if it is not viewed as possible with regard to operational security.
Allocation of “free capacity”
The obligation to connect applies to the existing grid. In the case new production can be connected without any investments the general rule is “first come, first serve”. This means that in an area with many new producers but limited free capacity, the first to make a binding agreement with the grid owner is the one that gets connected.
Connection charge
All grid owners have the possibility to require the new production to pay a connection charge according to prevailing regulations (see existing regulations).
Exemption
In the case the joint investment in grid and production is seen to be economically inefficient, the grid owner may apply for an exemption from the obligation to give connection.