ElWG Check: (no) (network) connection under this number?

Authors: Johannes Hartlieb, Kaleb Kitzmüller

What has happened so far

The energy transition is facing a dilemma: renewables are booming, and the expansion of photovoltaics in particular is advancing rapidly. However, the connection of these generation plants to the power grid often fails due to insufficient grid capacities. As a result, the electricity generated can be used for self-consumption, but any surplus cannot find a buyer – even though there would be interested parties, including in the neighborhood (energy communities). The expansion of power grids is also progressing rapidly, but it can hardly keep pace with the expansion of renewables.

The current ElWG draft attempts to provide a remedy here:

New definitions

It is striking that the new law no longer distinguishes between network access and network connection. This is to be welcomed, as this distinction has often led to misunderstandings. In addition, the network connection point (transfer point), which was already regulated in the market rules or in the General Distribution Network Conditions, is now legally defined. This is the contractually specified interface that connects the user’s system with a transmission or distribution grid.

Network connection point (transfer point) = the contractually specified interface that connects the user’s system with a transmission or distribution grid.

Definition of network connection point in the draft ElWG

General connection obligation

The general connection obligation, according to which distribution network operators are required to conclude private-law contracts on grid connection with end consumers and producers, remains in place. It is being expanded and extended to operators of energy storage facilities and (downstream) network operators. In addition, the general terms and conditions underlying the contracts between customers and network operators will no longer be drawn up by the distribution network operator, but by the regulatory authority (E-Control).

Network connection fee – new

There are also changes to the grid fee, which is no longer called network access fee, but network connection fee (combining the network access fee and the network provision fee). This is due to the fact that it is now up to the regulatory authority to set the fee, with the legislator only making a proposal, although the amount of the fee will remain unchanged for the time being.

It is also clarified that the network connection fee, in the event of an increase in the grid-effective capacity, is only charged to the extent of the increase. Finally, the fee privilege that previously applied to small PV systems (< 20 kW) is now extended to all small renewable energy systems.

Flexible grid access

As before, network connection must be distinguished from network access, which refers to the use of the network. Unchanged, the network operator can refuse network access due to insufficient grid capacity.

New is that the network operator must examine the possibility of flexible network access if the grid access requested by the entitled party cannot be granted to the desired extent or during the desired period. This is intended to facilitate the connection of generation plants, even if not all of the producible electricity can be fed into the grid from the start.

In the case of a new or modified grid access for a feed-in grid user, it can be contractually stipulated that the network operator specifies the maximum grid-effective capacity either statically or dynamically, if …

“Flexible grid access” in the draft ElWG

This is to be welcomed, as it strengthens the incentive to expand renewable energy. The specified grid-effective capacity for photovoltaic and wind power plants connected at grid levels 4 to 7 must not fall below 80% or 90% of the maximum capacity, respectively.

Conclusion

When it comes to network connection and network access, it is particularly clear that legislators are seeking to strike a balance between the interests of grid customers (consumers, producers) and the interests of grid operators. What stands out here is the possibility now provided for granting customers flexible grid access. At first glance, this seems to be a sensible approach to reduce the previous connection problems caused by insufficient grid capacities (“all or nothing”). It remains to be seen whether and how this option will be accepted in practice and whether the parliamentary process will bring about any changes in this regard.

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.