Renewable energy policy database and support: single

Grid development

Updated: 26.09.2017

Author: Jurga Tallat-Kelpšaitė

After the conclusion of an agreement for the connection of a RES plant to the electricity network with the RES plant operator, the grid operator shall, taking into account the current technical condition of the network, immediately take all reasonable steps to optimise, extend and (or) reinforce the grid in order to ensure the safe and reliable receipt, transmission and distribution of electricity generated from renewable energy resources. However, the Law on Energy from Renewable sources establishes no legal rights of RES plant operators to claim the development of the grid against the grid operator.

Procedure

Process flow	When the RES producer and grid operator conclude an agreement for the connection of RES plant to the electricity network, the grid operator shall, taking into account the current technical condition of the network, immediately take all reasonable steps to optimise, extend and (or) reinforce the grid and equipment for grid maintenance in order to ensure a safe and reliable receipt, transmission and distribution of electricity generated from renewable energy resources (Chapter III Art. 18 Par. 1 Law on Energy from Renewable Sources).
Enforcement of claims	If the grid operator fails to comply with its obligation to optimise, expand and (or) reconstruct and upgrade the capacity of the electricity network, the RES producer is entitled to information from the grid operator about the reasons why and the extent to which the grid operator failed to carry out his obligation (Chapter III Art. 18 Par. 2 Law on Energy from Renewable Sources). However, the Law on Energy from Renewable Sources does not establish the right of the RES plant operator to demand the grid operator to develop the grid.
Deadlines	If the connection of a RES plant requires the grid to be optimised, boosted or expanded, the plant has to be connected within a reasonable time agreed upon by both parties (the grid operator and a RES plant operator). This deadline for connection shall be specified in the grid connection agreement, upon assessment of the extent of the necessary upgrade or expansion. The agreed deadline can be extended for 6 months, if it cannot be met for reasons out of control of the grid operator (Chapter III Art. 14 Par. 2 and 3 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)

Distribution of costs

Consumers	The costs for optimising, developing and (or) reinforcing the grid are included in the price for electricity and thus borne by the final electricity consumers (Chapter III Art. 21 Par. 9 Law on Energy from Renewable Sources).
Plant operator	Costs borne by the RES plant operator: For plants with a capacity above 350 kW: 40% of the connection costs, including necessary grid development costs. For plants with a capacity of up to 350 kW: 20% of the connection costs, including necessary grid development costs (Chapter III Art. 21 Par. 3 Law on Energy from Renewable Sources).
Distribution mechanism	No more than 10% of the costs incurred for the optimisation, development and (or) reinforcement of the grid shall be reimbursed to the grid operator by a plant operator. The remaining costs are first covered by the grid operator and later included in the price for electricity and thus borne by the final consumers (Chapter III Art. 21 Par. 8, 9 Law on Energy from Renewable Sources).

Consumers

The costs for optimising, developing and (or) reinforcing the grid are included in the price for electricity and thus borne by the final electricity consumers (Chapter III Art. 21 Par. 9 Law on Energy from Renewable Sources).

Plant operator

Costs borne by the RES plant operator:

For plants with a capacity above 350 kW: 40% of the connection costs, including necessary grid development costs.
For plants with a capacity of up to 350 kW: 20% of the connection costs, including necessary grid development costs (Chapter III Art. 21 Par. 3 Law on Energy from Renewable Sources).

Distribution mechanism

No more than 10% of the costs incurred for the optimisation, development and (or) reinforcement of the grid shall be reimbursed to the grid operator by a plant operator. The remaining costs are first covered by the grid operator and later included in the price for electricity and thus borne by the final consumers (Chapter III Art. 21 Par. 8, 9 Law on Energy from Renewable Sources).

Renewable energy policy database and support

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Grid development

Procedure

Distribution of costs

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Further information

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