Grid development

Updated: 10.01.2019

Author: Boris Valach

The plant operator is contractually entitled against the grid operator to the expansion of the grid if the expansion is necessary to satisfy a connection agreement (§ 45 par. 1 Energy Act).

Entitled party: The subjects entitled are those producers of electricity from renewable energy sources that hold an electricity production licence and comply with both the connection requirements, which are set out in a separate legal provision (Notice of the Ministry of Industry and Trade), and the grid operator's terms and conditions (§ 23 par. 1 Letter a Energy Act).

Obligated party: The transmission or distribution grid operator whose cost of connection is the lowest is obligated to connect a renewable energy plant to its grid except where the reliable operation of the distribution system is at risk (§ 7 par. 1 Act No. 165/2012).


Process flow

From the beginning, the relationship between the grid operator and the plant operator is governed by contracts, which set out the grid operator's obligations and the plant operator's rights. The contracts may contain provisions for cases where the grid operator fails to fulfil its obligations (e.g. the expansion of the grid). These provisions must be in line with the current legal framework.


Statutory law does not provide any deadlines for an expansion of the grid. However, deadlines may be specified in the connection and transmission agreements.

Distribution of costs

Grid operator

The distribution grid operator bears the costs of extending low-voltage lines in built-up areas and low-voltage lines of up to 50 m in non-built-up areas (§ 45 par. 2 Letters a and b Energy Act).

Plant operator

In all other cases, i.e. low voltage lines longer than 50 m in non-built-up areas, the cost of grid expansion is borne by the subject that derives a benefit from the expansion. Thus, the plant operator usually bears the cost (§ 45 par. 2 Letter c Energy Act).

Czech Republic

Further information

Basic information on legal sources