Connecting to the Transmission Grid Will Become Significantly Faster
Following the government's approval of amendments to the grid code on 26 June, transmission system operator Elering will begin pre-developing infrastructure for future connections to the transmission grid. This will speed up and reduce the cost of connecting new generation capacities, contributing to the achievement of national energy targets.
Reigo Kebja, Member of the Management Board at Elering, explained that the company will proactively reinforce the existing transmission grid in areas of Estonia where new power plants are most likely to be built. “We have developed a grid pre-development concept at Elering, which means a new power plant can start operating as soon as the connection point is ready—without waiting for the completion of grid reinforcements required for commissioning. With Elering’s new approach, power plants can be connected to the grid significantly faster—within 18 to 36 months,” Kebja said.
Another key change is that Elering will begin connecting new generation capacities based on a fixed connection fee. This will provide clarity and predictability regarding connection costs, making it easier for developers to prepare business plans and make investment decisions. “Since the costs related to connection are determined by a fixed price list, developers will have cost certainty and can factor this into their investment planning. This also helps speed up and simplify the connection process. Pre-developing the grid also means we can make infrastructure investments more cost-efficiently—carrying out reinforcements for multiple connections at once is more optimal than doing it separately for each one,” Kebja explained.
The amount of the connection fee depends on whether the new power plant is connected to the existing transmission grid at a voltage level of 330 kilovolts or 110 kilovolts. The fee per megawatt is €65,000 at 110 kV and €12,000 at 330 kV, plus the costs associated with establishing the connection point. A detailed price list is available on Elering’s website: Connection Fee | Elering.
Under the previous system, the grid was developed based on incoming connection applications, and the connection fee was calculated individually for each applicant.
Under the new concept, half of the grid connection costs for generators will be covered by electricity consumers through the network tariff, and the other half by the connecting producers themselves. “Consumers also benefit from the grid investments made to connect new generation—such as the renewal of aging lines, which would eventually need to be upgraded anyway. Therefore, a portion of these costs is covered through the network fees paid by electricity consumers,” Kebja added.
The new conditions for connecting to Elering’s transmission grid and the prices calculated according to the new connection fee methodology will come into effect on 31 July. The Competition Authority approved the updated connection terms and fee calculation methodology on 27 June.