Network connection of generators
Generators planning new or increased power production must contact the local network owner about network capacity available before they apply for a license.
Obligation to connect
Companies owning network components must have a trading license. To all license holders applies a general obligation to offer access to the network on terms that are non-discriminatory and unbiased. The obligation to offer network connection is conditioned by sufficient network capacity in the existing network. Connecting a new customer to the network if the connection adversely affects the operational security of the network is not allowed.
Should there not be sufficient capacity in the existing network to provide the generator network connection, the obligation to connect implies that all affected license holders must apply for a building license and undertake necessary investments. The obligation to invest applies to all companies holding an area and/or building license.
All affected license holders/network owners are required to plan, apply for licenses and invest without any unfounded delay.
Obligation to plan
A network owner receiving a request for network connection must suggest a point of connection and consider if it is necessary to undertake investments, free of charge.
The network owner providing the customer network connection is responsible for contacting adjacent network owners and establish if they need to undertake investments. The adjacent network owners are responsible for planning, applying for a licenses and carrying out necessary investments in their network to allow for the new connection.
When to connect
A network connection can only be permitted when it does not adversely affect the operational security of the network. The network connection of a new customer must not affect the quality of supply to other network customers.
As a general rule, when investments are required to provide a customer network connection, connection should first take place when investments are completed.
It may in some cases be possible to provide a generator network connection even if there is not sufficient network capacity available, and still maintain operational security. For example, if the generator and the network owner enter into a provisional agreement on restrictions in power production.
Network owners choosing to enter into such agreements must ensure that the agreements do not come into conflict with the requirements of non-discriminatory and non-biased access to the network.
The generator may alternatively enter into a provisional agreement with an existing generator that supplies regulating power. The network owner must consider if the agreement is adequate enough to maintain operational security. The network owner cannot require that existing generators restrict power production.
Entering into permanent agreements on restrictions in power production as an alternative to network investments is not allowed. Provisional agreements can only be entered into when it has been determined that the required network investments will be undertaken. This implies that final building licenses must be in place and investment decisions have been made before such agreements can be entered into.
The network owner has no obligation to offer a generator advanced connection if it is considered to adversely affect the operational security.
Allocation of available capacity
Allocation of available capacity is done on a 'first come, first served' basis. This means that in an area with limited network capacity and several generators requesting network access, the first generator that enters into a binding agreement with the network owner is connected to the network.
Network companies may require a connection charge to cover the costs of connecting new generators to the network or reinforcing the network for existing generators.
When connecting a generator to the network, the network company can require that the generator builds, maintains and covers all costs related to the necessary customer specific installations. In addition, the generator may be charged related to investments needed to increase the capacity of the existing network.
In cases where the joint investment in network and generation is considered to be economically inefficient, the network owner may apply to NVE for an exemption from the obligation to connect.