Table Of ContentGrid Issues for Electricity Production
Based on Renewable Energy Sources in Spain,
Portugal, Germany, and United Kingdom
Annex to Report of the Grid Connection Inquiry
Stockholm 2008
SOU 2008:13
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Preface
This report is an underlying report to the Inquiry established by
the Swedish Government on connection to the grid of electricity
production based on renewable energy sources. The aim of this
report is to give an insight on how different issues regarding connec-
tion to the grid have been regulated in Spain, Portugal, Germany,
and the United Kingdom.
This report is based on interviews and legislation. The focus of
this report relies on network issues but in order to give an overall
insight on the circumstances in which renewable energies are deve-
loped in the studied countries even a description of the economical
promotion schemes is done.
We would like to thank all those who have contributed to this
report:
• In Spain: Asociación Empresarial Eólica – AEE, Comisión
Nacional de la energía – CNE, Ministerio de Industria, Turismo
y Comercio – MITYC, Instituto para la Diversificación y Ahorro
de la Energía – IDAE, Endesa, Iberdrola, and REE – Red
Electrica de España.
• In Portugal: REN – Rede Eléctrica Nacional, EDP – Energías de
Portugal, APREN – Associação de energias renováveis, DGEG
– Direcção Geral de Energia e Geologia, and Centro de Estudos
em Economia da Energia, dos Transportes e do Ambiente –
CEEETA.
• In Germany: German Federal Ministry for the Environment
(BMU), Federal Ministry of Economics and Technology (BMWi),
Federal Network Agency (Bundesnetzagentur), German Wind
Energy Association (BWE), RWE Transportnetz Strom GmbH,
German Network Association (VDN), Enercon.
• In the United Kingdom: Ofgem, Department of Trade and
Industry (DTI), National Grid, Xero Energy, Garrad Hassan,
British Wind Energy Association (BWEA), University of
Strathclyde.
Stockholm, November 2007
Eva Centeno López Thomas Ackermann
Table of Contents
List of Abbreviations .......................................................... 11
List of Figures ................................................................... 13
List of Tables .................................................................... 17
1 Spain........................................................................ 21
1.1 Introduction ............................................................................. 21
1.1.1 Overview of the Transmission System........................ 23
1.1.2 Overview of the Distribution System ......................... 24
1.1.3 Relevant Legislation for Renewable Electricity
Production .................................................................... 24
1.1.4 Regulatory Framework for Network Companies ...... 26
1.1.5 Development of the Wind Power Sector in Spain...... 27
1.1.6 Possible Barriers for the Future Development of
the Wind Power Sector in Spain .................................. 32
1.2 Payment Scheme for Renewable Electricity Production....... 32
1.2.1 Development of payment schemes.............................. 42
1.2.2 Agents Opinions on different Payment Schemes
for Renewable Electricity Production......................... 42
1.3 Application Procedure for Access and Connection to
the Grid .................................................................................... 43
1.3.1 Definition of the Capacity of a Production
Installation .................................................................... 46
1.3.2 Permitting Entities ....................................................... 47
1.4 Obligations of Grid Companies regarding Grid Access ....... 49
1.4.1 Available capacity ......................................................... 49
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1.4.2 Priority Access for Renewable Electricity
Producers.......................................................................51
1.4.3 Reservation of Transmission Capacity ........................52
1.5 Costs Associated to the Connection to the Grid ..................52
1.5.1 Costs for the Connection Installations.......................53
1.5.2 Costs for Reinforcement of the Transmission
Grid................................................................................55
1.5.3 Costs for Reinforcement of the Distribution
Grid................................................................................56
1.6 Costs and Obligations related to measurement .....................57
1.6.1 Net-metering.................................................................57
1.6.2 Hourly measurement ....................................................58
1.6.3 Measurement costs........................................................59
1.7 Grid tariffs ................................................................................60
1.8 Rights and Obligations regarding Real-Time Operation ......60
1.9 Conclusions Spain ....................................................................62
2 Portugal.....................................................................67
2.1 Introduction .............................................................................67
2.1.1 Overview of the Transmission System ........................68
2.1.2 Overview of the Distribution System .........................69
2.1.3 Relevant Legislation for Renewable Electricity
Production.....................................................................70
2.1.4 Regulatory Framework for Network Companies ......70
2.1.5 Development of the Wind Power Sector in
Portugal .........................................................................71
2.1.6 Possible Barriers for the Future Development of
the Wind Power Sector in Portugal .............................74
2.2 Payment Scheme for Renewable Electricity Production .......74
2.2.1 Wind Power...................................................................76
2.2.2 Solar Power....................................................................78
2.2.3 Biomass..........................................................................79
2.2.4 Hydropower ..................................................................80
2.3 Application Procedure for Access and Connection to
the Grid and Evaluation on Environmental Impact...............81
2.3.1 Permitting Entities........................................................84
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2.4 Obligations of Grid companies regarding Grid Access ........ 85
2.4.1 Available Capacity ........................................................ 85
2.4.2 Priority Access for Renewable Electricity
Producers ...................................................................... 87
2.4.3 Reservation of Transmission Capacity........................ 88
2.5 Costs associated to the Connection to the Grid ................... 89
2.5.1 Costs for the Connection Installations ...................... 89
2.5.2 Costs for Reinforcement of the Transmission
Grid................................................................................ 90
2.5.3 Costs for Reinforcement of the Distribution
Grid................................................................................ 92
2.6 Costs and Obligations Related to Measurement ................... 92
2.7 Grid tariffs................................................................................ 92
2.8 Rights and Obligations regarding Real-Time Operation ...... 92
2.9 Conclusions Portugal .............................................................. 93
3 Germany ................................................................... 97
3.1 Introduction ............................................................................. 97
3.1.1 Overview of the Transmission System...................... 100
3.1.2 Overview of the Distribution Systems...................... 101
3.1.3 Relevant Legislations for Renewable Energy............ 102
3.1.4 Regulatory Framework for Network Companies .... 106
3.1.5 Development of the Wind Power Sector in
Germany...................................................................... 107
3.1.6 Future Plans and Possible Barriers for the
Further Development of Wind Power ...................... 110
3.2 Payment Scheme for Renewable Energy Sources ................ 113
3.3 Application Procedure for Access and Connection to
the Grid .................................................................................. 119
3.3.1 Definition of the Capacity of a Production
Installation .................................................................. 124
3.3.2 Permitting Entities ..................................................... 125
3.4 Obligations of a Grid Company Regarding Grid Access.... 125
3.4.1 Available Capacity ...................................................... 126
3.4.2 Reservation of Transmission Capacity...................... 127
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3.5 Costs Associated with the Connection to the Grid ............127
3.6 Costs and Obligations Related to Measurement .................128
3.7 Grid Tariffs .............................................................................129
3.8 Rights and Obligations Regarding Real Time Operation....129
3.9 Conclusions Germany ...........................................................130
4 United Kingdom .......................................................133
4.1 Introduction ...........................................................................133
4.1.1 Overview of the Transmission System ......................138
4.1.2 Overview of the Distribution Systems......................141
4.1.3 Relevant Legislations ..................................................143
4.1.4 Regulatory Framework for Network Companies ....149
4.1.5 Development of the Wind Power Sector in the
UK................................................................................151
4.1.6 Future Plans and Possible Barriers for the
Further Development of Wind Power.......................153
4.1.7 Payment Scheme for Renewable Energy Sources .....155
4.2 Application Procedure for Access and Connection to
the Grid...................................................................................167
4.2.1 Definition of the Capacity of a Production
Installation...................................................................172
4.2.2 Permitting Entities......................................................172
4.3 Obligations of a Grid Company Regarding Grid Access ....174
4.4 Grid Access, Available Capacity and Queue
Management ...........................................................................175
4.5 Reservation of Transmission Capacity .................................180
4.6 Costs Associated with the Connection to the Grid ............181
4.7 Costs and Obligations Related to Measurement .................183
4.8 Grid Tariffs .............................................................................183
4.9 Rights and Obligations Regarding Real Time Operation....188
4.10 Conclusions United Kingdom ..............................................188
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5 Summary of Findings................................................ 193
5.1 General Renewable Energy Promotion Scheme .................. 193
5.2 Network Connection Procedure .......................................... 197
5.3 Network Investment Costs................................................... 200
5.4 Capacity Limits in the Regulations for Renewable
Energy..................................................................................... 203
5.5 Network Concessions ........................................................... 205
5.6 Metering ................................................................................. 208
5.7 Network Tariff Structure ...................................................... 209
5.8 Priority Production and Curtailment Policy ....................... 211
5.9 Current Policy Challenges Related to Network Issues ...... 213
5.10 Summary and Conclusion ..................................................... 214
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List of Abbreviations
BEGA Bilateral Embedded Generation Agreement
BELLA Bilateral Embedded License Exemptable Large
Power Station Agreement
BETTA British Electricity Trading and Transmission
Arangement
BSUoS Balancing Services Use of System charges
CNE Comisión Nacional de la Energía, (Regulator Spain)
CUSC Connection and Use of System Code
CHP Combined Heat and Power
DCLF DC Loadflow
DGGE Ministry of Economy and Innovation through its
Directorate of Energy
LECs Levy Exemption Certificates
DGE Dirección General de Energía
DL Decre Law (Portugal)
DNC Declared Net Capacity
DNO Distribution Network Operators
HEDP Energias de Portugal
GB Great Britain
IDNO Independent Distribution Network Operator
NETA New Electricity Trading Arrangement
NFFO Non-Fosil Fuel Obligation
NFPA Non-Fossil Purchasing Agency
Ofgem The Office of Gas and Electricity Markets
OFTO Ofshore Transmision Owner
PER Plan de Energías Renovables
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