Connection to the grid

Updated: 17.01.2019

Author: Lilian Pungas

District heating infrastructure development is within the competence of local authorities, who also determine the conditions and procedure for the connection to the grid. When new heating production capacities are necessary the grid operator is obligated to launch a public call for heat producers in order to determine the most cost-efficient offer. When connecting to the grid, there is no legally binding obligation to give priority to the heat produced from RES sources, however if there exists a possibility, heat from RES or heat produced in CHP power plants from RES or from waste, peat or heat from oil shale gas and best available environmentally friendly technology is preferred. However, according to the Ministry of Economic Affairs and Communications, due to various support schemes available for RES, the heat produced from RES sources or by CHP plants tends also to be the most cost-efficient way. 

Procedure

Process flow

  • When new heating production capacities are necessary grid operator launches an auction for heat producers in order to determine the best offer (§ 14.1 par. 2 District Heating Act). 
  • Once the bidding has finished, the grid operator concludes a contract with the chosen producers for a period of maximum 12 years (§ 14.1 par.1 District Heating Act).

Deadlines

Starting from the publication of the call for offers in a nationwide newspaper, heat producers have 30 days to manifest their will to conclude a contract with the grid operator (§ 2 par. 2 Bidding Rules for Heat Producers). In case when several heat producers wish to conclude a contract, the bidding announcement shall be released and heat producers shall have at least 30 days to correspond to the offer (§ 9 par. 3 Bidding Rules for Heat Producers). 

Obligation to inform

The grid operator is obligated to inform the Competition Authority and to publish on its website and at least in one nationwide newspaper the conditions for concluding a contract (§ 2 par. 2 Bidding Rules for Heat Producers). If several heat producers manifest their will to conclude a contract, the grid operator is obligated to publish on its website the conditions for the bid (§ 4 par. 1 Bidding Rules for Heat Producers). 

Priority to renewable energy

  • Priority to renewable energy
  • Non-discrimination

Statutory law states that priority concerning access to the grid is given to the producer providing the best offer. However, when possible, heat produced from renewable energy sources should be preferred (§ 13 par. 2 Bidding Rules for Heat Producers).

Distribution of costs

The grid operator is entitled to charge a fee for the connection to the grid. The amount of the fee is decided by the grid operator. When fixing the size of the fee, the investments necessary for the connection, quality and environmental requirements as well as overall benefit assessment are taken into account (§ 12 par. 1,2,3 District Heating Act).

Plant operator

When new heat production plant needs to be connected to the grid, the plant operator pays the costs (§ 12 par. 1 District Heating Act).

Estonia

Further information

  • Majandus- ja Kommunikatsiooniministeerium (MKM) – Ministry of Economic Affairs and Communications
  • Siim Meeliste
  • +372 625 63 42
  • MKM website
  • info(at)mkm.ee