Grid development

Updated: 07.01.2019

Author: John Szabo

A plant operator may be contractually entitled against the grid operator to the expansion of the grid if the expansion is necessary to satisfy a claim for connection to the grid. The grid operator is obliged to enter into connection contracts. He is expressly obliged to guarantee the connection of all plants within his territory to the grid (§ 8 (1) Government Decree No. 273/2007 (X.19)). Apart from that, the transmission grid operators are generally obliged to guarantee the smooth operation and provide for the maintenance of the grids (§ 14 Act No. LXXXVI of 2007).

Procedure

Process flow

The development plans for the transmission grid shall be in line with the energy policy target of promoting renewable energy (§ 25 (3) Act No. LXXXVI of 2007). Priority for re-newable energy is not explicitly prescribed by law. According to the DSO, the expansion works necessary to connect a plant are carried out after a grid connection agreement has been concluded.

Competent authority

Magyar Energetikai és Közműszabályozási Hivatal (MEKH) (Hungarian Energy and Public Utility Regulatory Authority)

Enforcement of claims

The circumstances in which a claim for the expansion of the grid arises and the enforce-ment of such a claim depend on the agreement between the grid operator/company and the grid user (e.g. plant operator), (§ 8 (3) Government Decree No. 273/2007 (X.19)).

Deadlines

Statutory law does not provide any deadlines for the expansion of the grid. 

Distribution of costs

Grid operator

The grid operators shall bear the costs for expansion works carried out to connect a new renewable energy plant to the grid (§ 7 (5) Act No. LXXXVI of 2007).

Plant operator

When calculating the grid use charges, the Hungarian Energy and Public Utility Regulatory Authority shall include, to a reasonable extent, the costs for connection to and the ex-pansion of the grid which were borne by the grid operators (§ 7 (5) Act No. LXXXVI of 2007). A plant operator shall pay the charge for the expansion of the grid beyond the grid connection point only if the length of the required line exceeds the limit set out in the Decree. If the length of the line is below this limit, the grid operator shall not impose charges for expansion works beyond the connection point (§ 33 Decree No. 10/2016 (IX.14.)).

Distribution mechanism

When setting the grid use charges, the Hungarian Energy and Public Utility Regulatory Authority considers the grid operator's expenses.

  • Grid operator – grid user (energy supply companies). The costs of the expansion of the grid are initially borne by the grid operator. He may collect the costs for expansion works in advance by including them in the grid use charges. Thus, he may pass on these costs to the energy supply companies (§ 7 (5) Act No. LXXXVI of 2007).  
  • Grid user (energy supply company) – final consumers. The energy supply companies may pass on the costs for the expansion of the grid, which they bear through the grid use charges, to the final consumers through the electricity price. 

Grid studies

Information in Hungarian:

Mavir 2016 Grid Development Plan (A Magyar Villamosenergia-rendszer Hálózatfejlesztési Terve 2016): http://mavir.hu/documents/10258/15454/HFT_2016.pdf/25121f3a-9244-488b-be52-23116b2cd3f9 (published on 23.01.2017)

Information in English:

Annual Capacity Plans are available under: http://mavir.hu/web/mavir-en/actualities

Enforcement of claims

The circumstances in which a claim for the expansion of the grid arises and the enforcement of such a claim depend on the agreement between the grid operator/company and the grid user (e.g. plant operator), (§ 8 (3) Government Decree No. 273/2007 (X.19)).

Hungary

Further information

  • Magyar Energetikai és Közműszabályozási Hivatal (MEKH) - Hungarian Energy and Public Utility Regulatory Authority (HEA)
  • +36 459 7777
  • MEKH website
  • mekh(at)mekh.hu