Connection to the grid

Updated: 17.01.2019

Author: Georgios Maroulis

There are several grid connection procedures. A plant operator is contractually entitled against the grid operator to the connection of renewable energy plants to the grid. The grid operator is obliged to enter into connection contracts (art. 9 par. 1, art. 11 par. 1 Law No. 3468/2006 in conjunction with art. 267, 268 GTSC).

Every operator of a renewable energy plant who is a contracting party to a connection contract is entitled to connection. Contracting parties can be only those producers of electricity from renewable sources that hold an electricity production licence (art. 3 Law No. 3468/2006). This licence is issued by the Ministry of Development for a period of 25 years and shall be approved by the Greek Regulatory Authority for Energy (RAE). This period may be extended by an additional 25 years (art. 3 par. 4 Law No. 3468/2006).

The obligated party is the transmission or distribution grid operator in charge (art. 12 par. 1 Law No. 3468/2006 in conjunction with art. 97 and art. 125 Law No. 3468/2011). The plant shall be connected at the economically and technically most suitable connection point.

Claims arise at the date of the conclusion of the contract. The contract shall be concluded according to a procedure specified by law, which applies to all applicants for connection (art. 268 par. 1, 2 GTSC).

 

 

Procedure

Process flow

For RES plants in the interconnected grid system, the procedure consists of the following steps: 

  • A production licence is issued (art. 2 par. 1 Law No. 3851/2010). The authority responsible for issuing these licences is the Regulatory Authority for Energy (RAE). The production licence has a duration of 25 years (art. 3 par. 4 Law No. 3468/2006 in conjunction with FEK B 2373/2011).
  • An installation licence shall be issued by the competent directorate of the administrative region within 30 days (art. 8 par. 1 Law No. 3468/2006). Within the same timeframe, the interested party shall apply for an Environmental Impact Assessment (EIA). The installation licence has a duration of 2 years and it can be extended under specific circumstances for two more years (art. 8 par. 10 Law No. 3468/2006), whereas an EIA is valid for 10 years (art. 8 par. 7 Law No. 3468/2010). 
  • The interested party shall also apply to ADMIE (Greek TSO) for a connection offer (for plants with a capacity above 8MW). If the RES plant is to be connected to the distribution grid (capacity up to 8MW), the application will be forwarded to the DSO (PPC/HEDNO). The interested party agrees on the terms of the connection offer and a connection contract is signed (art. 268 par.7 GTSC in conjunction with art. 97 par. 1, 2 and art.125 par. 1, 2 Law No.4001/2011). If the connection offer expires, but the plant operator has submitted all the necessary licenses for the finalisation of the connection contract, the connection offer is extended (art.8 par.4 Law No.3468/2006). 
  • From January 2015, after the connection contract is signed or even if a final connection offer is received, the plant operator is obliged to submit a guarantee letter. The amount of guarantee letter is defined by the following criteria (par. I.1.3. Law No. 4152/2013):
    • a) Capacity up to 1MW: € 42/kW
    • b) Capacity from 1MW to 10MW: € 30,000 per MW € 21/kW
    • c) Capacity from 10MW to 100MW: € 20,000 per MW € 14/kW
    • d) Capacity above 100MW: € 10,000 per MW€ 7/kW
  • In addition, the plant operator must pay the full amount of all grid connection works carried out by ADMIE/ HEDNO. Sums up to € 250,000 should be paid in full, while for sums above € 250,000, the repayment conditions are stipulated in the connection agreement (par. I.1.2. Law No. 4152/2013). 
  • Apart from that, an electricity purchase agreement is signed between LAGIE, the Greek Electricity Market Operator, and the interested investor (art. 12 Law No. 3468/2006 in conjunction with art.118 par.2h Law No. 4001/2011). An operating license is issued for a duration of 20 years (25 years for CSP plants) (art. 3 par.11 Law No. 3468/2006).

For small-scale RES plants in the interconnected system, there is a simplified grid connection procedure. ”Small-scale RES plants” are defined as follows (art. 4 Law No. 3468/2010): 

  • geothermal power plants with an installed capacity of no more than 0.5 MW, 
  • biomass, biogas and biofuel plants with an installed capacity of no more than 1 MW, 
  • PV or CSP installations with an installed capacity of no more than 1 MWp, 
  • wind power plants with an installed capacity of no more than 100 kW, 
  • CHP stations with an installed electrical capacity of no more than 1 MWe.

Those small-scale RES plants are not obliged to obtain production and installation licences (art. 4 Law No. 3468/2006).

Apart from that, wind power installations of up to 20 kW, PV installations of up to 0.5 MW and PV installations on commercial buildings are also exempt from the obligation of implementing an EIA (art. 8 par. 13 Law No. 3468/2006). Except for the first two steps, the connection process for small plants is identical with the standard connection process described above.

The only difference between the main grid system and non-interconnected islands is that on islands the authority responsible for the conclusion of agreements with the plant operators is HEDNO (art. 10 Law No. 3468/2006). However, LAGIE, the Greek Electricity Market Operator, can also conclude a contract (art. 10 Law No.4414/2016).

In addition, ADMIE can make a connection offer to wind power plants in locations characterised as congested, under condition that the additional capacity of the plant will not exceed 20% of the projected aggregate power fed into the transmission system (art.8A Law No. 3468/2006).

For small RES plants under a net metering scheme, the connection process is as follows: 

  • Filing of an application for grid connection to the local branch of the Distribution Network Operator (HEDNO): The application form (available on HEDNO's website, www.deddie.gr) consists of 4 standard sections to be completed by the interested person (personal data, installation specifications, PV system specifications and ownership status). The applicant must already have chosen the type of equipment which will be installed and have carried out the relevant technical study. HEDNO examines the application and sends, within one month from receipt of the application, a Grid-connection Offer to the interested person, including a description of necessary works as well as related costs. This grid-connection offer is valid for three (3) months from its date of issue (art.4 par.2 FEK B’ 3583/2014). 
  • Filing of an application for drawing up a Connection Agreement with the regional branch of HEDNO. The application states that the Connection offer is accepted (art.4 par.3 FEK B’ 3583/2014).
  • Signing of the Connection Agreement with simultaneous submission of the relevant fee to the regional branch of HEDNO. The fee varies between € 300 - € 450. The connection works needed have to be finished by HEDNO within one month from signing of the Connection Agreement (art.4 par.3 FEK B’ 3583/2014).

For PV plants under the new (virtual) net metering scheme a similar but more detailed connection process is followed. The basic difference is that after the Connection Agreement is signed, the “Net-Metering Agreement” or the “Virtual Net-Metering Agreement” is signed (art. 8 Min. Res/F1/oik.175067).

Competent authority

Ministry of Environment and Energy (YPEN- MEE), Ministry of Economy, Development, and Tourism (MEDT), Public Power Corporation S.A. (PPC S.A.) - electric utility company, Regulatory Authority for Energy (RAE), Independent Power Transmission Operator (ADMIE), Hellenic Distribution Network Operator (HEDNO)

Deadlines

Production licence: RAE is obliged to issue such a licence within 2 months and may consult the TSO (ADMIE) or the DSO (HEDNO) (art. 3 par. 2 Law No. 3468/2006 in conjunction with art. 118 par. 2h Law No. 4001/2011).

Connection offer: The TSO (ADMIE) is obliged to make a connection offer within 4 months. This offer will be valid for 4 years (for large RES plants) or 6 months (for small-scale RES plants) (art. 8 par. 4 Law No. 3468/2006). The duration of the connection offer can be extended if the plant operator has submitted all the necessary applications. The extension varies between 18 - 24 months, depending on the grid connection works the grid operator has to carry out before the conclusion of the connection contract (art.8 par.4 Law No.3468/2006).

Connection agreement: Connection agreement should be concluded within 3 months for small-scale RES plants and 6 months for large RES plants (art.11 par.4 Law No. 3468/2006).

Operating licence: A plant operator shall apply for an operating licence, which will be issued within 20 days.

Guarantee Letter: Guarantee letter is submitted to ADMIE within 2 months from the conclusion of a connection agreement (par. I.1.3 Law No.1453/2013).

Finally, the date of connection of the plant to the grid depends on the contractual terms. During the contract negotiation process, each contracting party must meet various obligations and deadlines (art. 268 par. 1 GTSC). In addition, grid operators should realise the necessary grid connection works within 12 months since the connection agreement is signed (art.11. par.4 Law No.3468/2006). Wind parks above 150 MW, non-interconnected wind parks and RES plants of related capacity are excluded (art.11. par.4 Law No.3468/2006).

For PV plants: If the PV plant is ready to be connected to the grid (if the RES operator applies for the activation of the connection), the plant should be connected to the grid within 3 months. If that deadline expires, the grid operator is obliged to compensate the RES operator 50% of the cost for the necessary grid connection works (stipulated in the connection contract), if the grid operator finally meets its obligation within 4 months from the submission of initial request; Otherwise, 100% of the contractually agreed cost for the necessary grid connection works (art. 14 par.3 Law No.3468/2006).

For RES under the net-metering scheme: HEDNO examines the application and sends, within 1 month from the receipt of application, a Grid Connection Offer to the applicant, including a description of necessary works as well as related costs. The necessary connection works have to be finished by HEDNO within 1 month from signing the Connection Agreement.

For PV tender: The tendered capacity must be connected to the grid within 18 months for category A and 24 months for category B PV installations (art.7 par. 9e Law No.4414/2016).

 

 

 

For the 2018 tenders, the following deadlines are set:

 

  • For PV Category A: 12 months after the publication of the tender results (Call 4/2018 art. 1 par. 6 RAE Decision 1026/2018)
  • For PV Category B: 15 months for PV between 1 MW - 5 MW and 18 months for PV > 5 MW. 6 months are added if PV is connected to the Transmission System via a substation (Call 5/2018 art. 1 par. 6 RAE Decision 1026/2018)
  • For wind energy: 24 months for wind between 3 MW - 10 MW and 36 months for Wind > 10 MW. 6 months are added if the plant is connected to the Transmission System through a substation (Call 5/2018 art. 1 par. 6 RAE Decision 1026/2018).

Furthermore, there is a number of provisions concerning plants on non-interconnected islands that are expected to be interconnected.

For PV under the new net-metering scheme: HEDNO examines the application and sends, within 1 month from the receipt of application for net metering and 4 months for virtual net metering, a Grid Connection Offer to the applicant, including a description of necessary works as well as related costs. Connection Offer has a duration of 3 months. The necessary connection works have to be finished by HEDNO within one month from signing the Connection Agreement.  The “Net-Metering Agreement” or the “Virtual Net-Metering Agreement” is signed within 15 days (art.8 Min. Res/F1/oik.175067).

Priority to renewable energy

  • Priority to renewable energy
  • Non-discrimination

In general, RES plants have no priority for grid connection. The date of the examination of an application for connection offer depends on the date of its submission (art. 4 par. 3 and 5b, art. 8 par. 4 Law No. 3468/2010).

Capacity limits (quantitative criteria)

The grid operator examines the connection application and, in pursuance with stability criterion "N-1" of the grid code, makes a connection offer. The connection offer may specify works to be carried out by the plant operator (art. 268 par. 1, par. 5 GTSC). Apart from that, the grid operator is entitled to carry out thorough examinations so as to assess the impact of the new plant on the grid. The costs of these examinations shall be borne by the plant operator (art. 268 par. 7 GTSC). The connection offer may contain further specifications the plant operator has to consider in order to ensure the safe and reliable operation of the grid (art. 268 par. 7 GTSC).

Distribution of costs

Plant operator

The RES plant operator shall bear the costs arising from the connection of his plant to the technically and economically most suitable connection point and the costs of necessary metering devices that record the electric power fed in and received (art. 273 par. 2, art. 272 and art. 268 par. 8 GTSC in conjunction with art. 11 par. 1b Law No. 3468/2006). In addition, the RES plant operator with the conclusion of the connection contract should pay an amount of max. € 250,000 that shall cover grid connection works to be undertaken by the grid operator. The exact amount is defined in the connection contract (par. I.1.7 Law No.4152/2013). 

Greece

Further information

  • Υπουργείο Περιβάλλοντος και Ενέργειας - Ministry of Environment and Energy (YPEN- MEE)
  • +30 210 6965 902
  • Ministry website
  • Υπουργείο Οικονομίας, Ανάπτυξης και Τουρισμού - Ministry of Economy, Development, and Tourism
  • +30 210 3332000
  • Ministry website
  • Δημόσια Επιχείρηση Ηλεκτρισμού- Public Power Corporation S.A. (PPC) - electric utility company
  • Dimitris Venetidis
  • +30 210 523 77 18
  • PPC website
  • info(at)dei.com.gr
  • Ανεξάρτητος Διαχειριστής Μεταφοράς Ενέργειας- Independent Power Transmission Operator (ADMIE)
  • +30-210-5192101
  • ADMIE website
  • Info(at)admie.gr
  • Διαχειριστής του Ελληνικού Δικτύου Διανομής Ηλεκτρικής Ενέργειας - Hellenic Distribution Network Operator (HEDNO)
  • +30 210 9281698
  • HEDNO website
  • infodeddie(at)deddie.gr