New conditional connection agreement model introduced to support grid connection and investment decision processes in large industrial projects
Fingrid has introduced a conditional connection agreement alongside the traditional connection agreement. This new model aims to support and facilitate grid connection and investment decision processes in large industrial projects. It will initially apply to large-scale consumption projects of at least 250 megawatts that involve long permit application processes. It is intended that the model will be developed to also cover large production projects in the future.
The energy transition poses challenges to electricity grids and there may be temporary shortages of capacity in some areas. The basic principle is that grid connection capacity will only be agreed for customer projects once their permits have entered into legal force. This will enable the efficient implementation of grid connections for projects in which the preconditions for building have been met.
However, the permit application process differs in content and duration depending on the type and size of the project in question. In order to enable and streamline large-scale consumption projects that involve long permit application processes, Fingrid has introduced a conditional connection agreement alongside traditional connection agreements. It is intended only for large industrial consumption projects of 250 MW or more, and will be further developed on the basis of the experiences gained.
A conditional connection agreement can be made once the customer has received a final conclusion report on the EIA procedure for the project, the environmental permit process has been initiated and the customer has acquired or leased the land for the project site. In addition, the network investments required for the customer connection must be feasible both technically and economically and within a reasonable timeframe. A conditional connection agreement sets out the terms and conditions for the connection of the customer's project.
It is intended that the conditional connection agreement model will be expanded in the future to cover large-scale production projects, such as offshore wind and nuclear grid connections. Fingrid is working on the application of the model to production projects together with its customers and stakeholders.
Further information:
Petri Parviainen, Unit Manager, Fingrid Oyj
e-mail addresses: forename.surname@fingrid.fi