In an effort to enhance the efficient development and utilisation of electricity system capacity, a flexible connection service will soon be introduced. This initiative is outlined in the amendments to the Electricity Market Law, which were approved in their third and final reading by the Saeima on Thursday, 6 March.
During a meeting of the Economic, Agricultural, Environmental, and Regional Policy Committee, the Ministry of Climate and Energy (KEM) explained that the amendments are crucial for ensuring a sufficient and affordable supply of electricity. The changes also aim to optimise network capacity availability and reduce administrative burdens. According to KEM, the new regulation will provide developers with quicker access to the network, lower grid costs, and stimulate competition, ultimately leading to more efficient pricing that benefits all market participants.
Until now, electricity producers were offered fixed connections, where the transmission system operator ensured that energy-producing facilities could inject any amount of electricity into the system, up to the connection’s capacity limit. However, KEM informed the committee that many stakeholders had reserved large capacities that remained unused, thereby limiting the availability of free capacity for high-readiness projects that could begin generating electricity in the near future.
The amendments introduce the possibility for producers to relinquish previously reserved system capacity. An electricity producer who has paid the reservation fee for system capacity can now request a refund if they choose to cancel the connection installation. Additionally, producers will be permitted to reduce the capacity specified in their technical requirements and receive a partial refund of the system capacity fee.
Furthermore, the transmission system operator will have the ability to issue technical requirements for multiple producers at the same connection point, with capacity being reserved only upon the signing of a contract. This change will also enable the issuance of technical requirements for a flexible product that exceeds available capacity, with contracts being signed based on the capacity available on the day of signing. The transmission system operator may, if necessary, limit capacity by up to 10 percent per year.
The amendments also strengthen the principle of public interest, ensuring that the planning, construction, and operation of certain renewable energy plants, their grid connections, related infrastructure, and storage facilities are deemed crucial for public health and security. In such cases, necessary permits for new renewable energy generation facilities may be prioritised.
The transmission system operator will be required to publish information on available flexible transmission capacity on its website. The first capacity map is expected to be published on 2 June of this year, followed by updates on the first working day of each month.
Due to the high level of activity among electricity producers and the shortage of available capacity in the transmission system, the amendments specify that, until 31 December 2026, free capacity will only be allocated for receiving the flexible transmission service or for installing other electricity generation facilities within existing connections.
Saeima Press Service