Connection to the grid

Updated: 07.01.2019

Author: Karl Wikberg

A plant operator is statutorily entitled to connection to the grid against the grid operator. The grid operator is obliged to enter into an agreement with the plant operator if the plant in question meets the technical requirements of the grid operator. The connection conditions shall be objective and have non-discriminatory criteria and take into account the effectiveness and reliability of the electrical system (§ 20 Act No. 588/2013). Detailed provisions regarding the connection of a particular plant to the grid are specified in a connection agreement between the plant operator and the grid operator. 

Entitled party. Every operator of a plant that generates electricity from renewable sources is entitled to connection as long as he meets the conditions for connection and the technical requirements specified by the grid operator (§ 20 Act No. 588/2013).

Obligated party. The party obliged to grant connection to the grid is the licensed grid operator whose area the plant is located in (§ 20 Act No. 588/2013). The grid operator's area of operation is determined by his licence (§ 9 Act No. 588/2013).

Procedure

Process flow

The grid connection procedure is not regulated by law. According to the grid operator, projects must usually adhere to the following procedure: 

  • Informal negotiations between plant operator and grid operator. The plant operator describes his project (location and capacity of the plant) and the grid operator conducts a grid capacity study to find out whether grid capacity is sufficient.
  • Assignment of grid connection point. The grid operator assigns a connection point to the plant operator.
  • Investment plan. The plant operator sets up an investment plan.
  • Letter of intent. The grid operator declares that he will reserve a certain capacity for a certain period of time to connect the plant. Within the specified period of time, the plant operator must comply with certain requirements (e.g. he must obtain full building permission).
  • Planning and building permission. The plant operator must obtain planning and building permission.
  • Grid upgrade agreement.
  • Grid expansion or upgrade (if grid capacity is insufficient).
  • Connection agreement. The connection agreement sets out the technical conditions for the connection of the plant to the grid.
  • The plant is connected and electricity is exported to the grid.

Deadlines

The Act does not lay out a time frame within which a plant is to be connected to the grid. Nevertheless, the plant operator suffering from loss due to the unreasonable delay concerning the connection to the grid has the right for compensation by the grid operator (§ 95 Act No. 588/2013). The compensation size is fixed at 5% of the connection fee for the first two weeks of delay. Thereafter the fee is 10% of the connection fee for each beginning week of the delay. The maximum compensation is 30% of the connection fee, it can nevertheless not exceed € 3,000 (§ 95 Act No. 588/2013).

Obligation to inform

Before concluding a contract, the plant operator needs to receive information concerning the principal conditions to be applied to the contract. The exact details are given in § 86 Act No. 588/2013.

Moreover, the grid operator has to publish the technical requirements for connection, react to inquiries concerning connection within a reasonable time and, upon request, provide the plant operator a comprehensive and sufficiently detailed estimate of connection costs and an assessment of when a connection is available (§ 86 Act No. 588/2013).

Priority to renewable energy

  • Priority to renewable energy
  • Non-discrimination

The grid operator is obligated to grant connection to the grid according to non-discriminatory criteria (§ 20 Act No. 588/2013). Electricity generated from renewable sources is not given priority.

Distribution of costs

Plant operator

The plant operator shall pay to the grid operator the reasonable cost for the connection of his plant to the grid. It may request from the grid operator a detailed list of the costs incurred by the connection of his plant to the grid (§ 20 Act No. 588/2013). In case a grid upgrade is necessary to connect the plant, small plant operators (capacity < 2MW) are not obliged to pay this part of the connection costs (§ 56 Act No. 588/2013).

Finland

Further information

  • Fingrid – transmission system operator
  • +358 303 955 000
  • Fingrid website

Basic information on legal sources