Connection to the grid

Updated: 26.09.2017

Author: Jurga Tallat-Kelpšaitė

The grid operator is obliged to connect RES plants to the grid even if the connection requires the grid to be optimised, boosted or expanded. Renewable electricity generation plants whose capacity does not exceed 6 MW shall be connected to the distribution grid only. If the capacity of a plant exceeds 6 MW, it shall be connected either to the distribution grid or the transmission grid, depending on the technical specifications.

Procedure

Process flow

The standard connection process for RES plants is defined in the Law on Energy from Renewable Sources. The following steps are necessary:

 

  • Preliminary grid connection conditions. RES plant operator submits to the grid operator a request for preliminary grid connection conditions. No later than within 30 calendar days from the receipt of the request by the RES operator, grid operator is obliged to issue preliminary conditions. Preliminary grid connection conditions shall specify all necessary actions that RES plant operator has to take to connect his RES plant to the electricity grid. They cannot contain requirements other than those that are necessary to ensure a reliable, safe and proper functioning of the RES installation and the power system. (Chapter III Art. 14 Par. 8 Law on Energy from Renewable Sources)
  • Letter of Intent (LoI). After having received the preliminary grid connection conditions, RES plant operator submits to the grid operator a request to sign a LoI, committing both RES plant operator and grid operator to construct and to connect an installation. The grid operator is obliged to sign the LoI no later than with 30 calendar days from its receipt. The LoI sets out the installation capacity, the energy source intended to be used by the installation as well as the respective deadlines for the project. In addition, the RES plant operator has to submit a confirmation by the municipality in whose territory the plant is planned that the construction of a plant of this type and capacity is not prohibited by the spatial planning legislation. (Chapter III Art. 14 Par. 10, 11 Law on Energy from Renewable Sources) The capacity of RES-facilities that are planned to be connected to the electricity transmission grid cannot be lower than 6 MW. (Chapter V Item 34.6 Resolution No. O3-229/2011)
  • Financial guarantee. The plant operator submits to the grid operator a financial guarantee obliging the former to install a plant or otherwise pay a fine. The amount of guarantee to be provided depends on the generation capacity of the plant (1 kW x € 14.48). If a plant operator wants to extend the duration of the permit for the expansion of electricity production capacity, the amount of a guarantee is increased by multiplying the amount of guarantee (1 kW x € 14.48) by the duration of extension (expressed in number of years). (Chapter III Art. 15 Par. 1, 2, Art. 20 Par. 3 Law on Energy from Renewable Sources)
  • Participation in a tender. To receive a guaranteed tariff, the operators of RES plants whose total installed capacity exceeds 10 kW have to participate in a tender. (Chapter IX Resolution No. O3-229/2011). The winner of a tender shall not, after the tender, change the connection point and increase plant capacity specified in the Letter of Intent or the grid operator's technical requirements. Plant capacity may be decreased in cases specified in the Resolution No. O3-229. (Chapter II Items 11, 12 Resolution No. O3-229/2011)
  • Application for a permit for the expansion of electricity production capacity. The plant operator submits an application to the State Energy Inspectorate under the Ministry of Energy, requesting a permit for the expansion of electricity production capacity (Chapter III Art. 14 Par. 15, Art. 16 Par. 2 Law on Energy from Renewable Sources, Chapter I Item 5.2, Chapter II Item 14.1 Order No. 1-171/2015). This permission is issued by the State Energy Inspectorate within 30 calendar days from the receipt of all required application documents (Chapter V Item 35 Order No. 1-171/2015). The permit is not required where extended or installed electricity generating capacity does not exceed 10 kW and the generated electricity is used for own needs, without feeding the generated electricity into the grid (Chapter VI Item 53 Order No. 1-171/2015). Simplified procedure is applicable where extended or installed electricity generating capacity does not exceed 10 kW and the generated electricity is supplied to the grid (Chapter VI Item 53 Order No. 1-171/2015). In such case, the plant operator shall inform the grid operator about the planned extension or installation of electricity generating capacity (Chapter VI Item 55 Order No. 1-171/2015).
  • Construction permit. Upon the receipt of the permission for an increase in output by the State Energy Inspectorate under the Ministry of Energy, a plant operator has to apply for a construction permit, issued by the head of administration of the competent municipality (or an authorised municipality official). For RES plants with the installed capacity of up to 350 kW, except certain types of hydropower, simplified requirements are applicable (Chapter X Art. 49 Law on Energy from Renewable Sources).
  • Issue of connection conditions. Upon the receipt of the permission for the expansion of electricity production capacity by the State Energy Inspectorate under the Ministry of Energy, RES plant operator applies to the grid operator for the issue of connection requirements (Chapter VIII Item 46 Rules on the use of the transmission grid; Chapter IX Item 41 Rules on the use of the distribution grid).
  • Connection agreement. The plant operator and the grid operator sign an agreement on the connection of the RES installation to the electricity grid (Chapter III Art. 14 Par. 15 Law on Energy from Renewable Sources).
  • Permission to generate electricity. When the construction of new power generation facilities is completed, the plant operator has to obtain permission from the State Energy Inspectorate under the Ministry of Energy for the generation of electricity (Chapter I Item 5.1, Chapter II Item 14.1 Order No. 1-171/2015). This permission is issued by the Inspectorate within 30 calendar days from the receipt of all required application documents (Chapter V Item 35 Order No. 1-171/2015). The permit is not required where extended or installed electricity generating capacity does not exceed 10 kW and the generated electricity is used for own needs, without feeding the generated electricity into the grid. In such cases, the plant operator shall inform the grid operator about the planned extension or installation of electricity generating capacity (Chapter VI Item 52 Order No. 1-171/2015). Simplified procedure is applicable where extended or installed electricity generating capacity does not exceed 10 kW and the generated electricity is supplied to the grid (Chapter VI Item 51 Order No. 1-171/2015).
  • Statement of verification. The RES plant operator shall submit to the grid operator a statement of verification of the technical performance of the electricity equipment by the National Energy Inspectorate or other competent person/body authorised to issue a document attesting the technical condition of electrical installations (Chapter II Art. 14 Par. 11 Item 2 Law on Energy from Renewable Sources, Chapter III Item 35 Order No. 1-127/2012).
  • Connection. The grid operator is obliged to connect the RES plant to the grid within 22 months from signing the agreement on the connection of the installation to the grid or within the period specified in the LoI in case the construction of the RES plant exceeds 22 months. The deadline can be extended for 6 months, if the connection deadline cannot be met for reasons beyond the control of the grid operator (Chapter III Art. 14 Par. 1 and 3 Law on Energy from Renewable Sources).

Offshore wind farms. In case of offshore wind farms, applicants have to acquire a licence granting the right to use territorial sea, the exclusive economic zone in the Baltic Sea and (or) coastal areas for the development and maintenance of the wind farm. Such licences are granted through tenders for 35 years, without any possibility of extension (Chapter III Art. 22 Par. 2, 3 Law on Energy from Renewable Sources).

 

 

Deadlines

The grid operator is obliged to connect a RES plant within 22 months or within the period specified in the LoI, if construction of the RES plant takes more than 22 months. The connection deadline can be extended for 6 months if the deadline cannot be met for reasons out of control of the grid operator (Chapter III Art. 14 Par. 1, 3, 11 Law on Energy from Renewable Sources).

Obligation to inform

The grid operator is obliged to provide the RES plant operator with all information which is necessary for the connection of his RES plant. (Chapter III Art. 14 Par. 8 Law on Energy from Renewable Sources)

Priority to renewable energy

  • Priority to renewable energy
  • Non-discrimination

RES installations are entitled to priority connection to the electricity grid (Chapter III Art. 14 Par. 1 Law on Energy from Renewable Sources).

Capacity limits (quantitative criteria)

The network operators are obliged to connect RES plants even if the connection requires the grid to be optimised, boosted, expanded or reconstructed (Chapter III Art. 14 Par. 2 Law on Energy from Renewable Sources).

Distribution of costs

Consumers

The connection of RES plants to the electricity grid is a public service obligation. (Chapter III Art. 21 Par. 1 Law on Energy from Renewable Sources) According to the National Commission for Energy Control and Prices, the costs of public service obligations are included in the electricity price and thus borne by the final consumers.

Plant operator

A RES plant operator shall bear:

  • 40% of the connection costs (for plants with the capacity above 350 kW)
  • 20% of the connection costs (for plants with the capacity of up to 350 kW) (Chapter III Art. 21 Par. 3 Law on Energy from Renewable Sources).

 

Lithuania

Further information