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Elering welcomes new customers who apply for a new grid connection at 110/330kV voltage or amendment of the conditions for demand or generation or other technical conditions applicable to an existing grid connection.

Applications for connecting to the national transmission system, the preliminary investigation, amendments to consumption conditions and procurement documents may be submitted through the corresponding information system egle.ee, and all subsequent exchange of data related to these actions also takes place over the same interface.

Stages in the process of establishing a new connection to Elering’s power grid

For a timeline of the connection process, click here:

liitumise%20etapid.PNG

A comprehensive overview of the process of establishing a new connection can be found in the brochure (in Estonian) Teejuht põhivõrguga liitujale (Guide for customers connecting to the national transmission system), a guide for those connecting to the grid.

As a rule, the optimum connection point for connecting to the national transmission system operated by Elering is an Elering substation. The locations of substations can be seen on the map of the Estonian electricity system.

Data on Producers Connecting to the Grid

The table below presents information on connection requests, valid connection agreement offers, and signed as well as ongoing connection agreements (including those being executed by producers) for entities connecting to the Elering AS grid. This data is disclosed in compliance with Section 65, Subsection 12 of the Electricity Market Act.

If any modifications occur in the published data, the table will be updated within one week. The most recent update date is specified in the file title.

Liitumistaotlused, liitumispakkumused ja liitumislepingud 2025.01.29.xlsx

 

Data on production modules connected to the network

Data disclosed by Elering on the basis of subsection 23 (3) of the Grid Code can be found: 

 Jaotusvõrguga ühendatud tootmismoodulite andmed.xlsx

 

Undertilisation fee

On 17 March 2023, an amendment to the Electricity Market Act (hereinafter EMA) entered into force, establishing a deadline for connecting a generating installation to the network, fee for failure to use generating capacity (underutilisation fee), and the prohibition to change the technology.

The underutilisation fee is imposed on the basis of subsection 871 (6) of the EMA in respect of a customer who has entered into a connection contract and who has not used the generating capacity under their connection contract within the period provided in subsection 871 (4) of the EMA.   On the basis of subsection 871 (6) of the EMA, underutilisation fee is also calculated in the case of a temporary network contract. 

A connection contract has been mutually performed once a certificate of compliance has been issued for the generating installation and a full network contract (hereinafter permanent network contract) has been entered into. Following the entry into a permanent network contract, which terminates the previously valid connection contract (including a temporary network contract), underutilisation fee is calculated on the basis of subsection 871 (7) of the EMA. 

Due to the relevance of the topic, we present below Elering’s explanations regarding the implementation of the underutilisation fee. These explanations do not replace the explanations of the legislator and are subjective explanations on the part of Elering on how the EMA should be complied with or how Elering is dealing with proceedings related to the law.

 

FAQ:

1. When does the period for calculating underutilisation fee for use of generating capacity under a connection contract begin? 

The start of the period for calculating underutilisation fee when using generating capacity under a connection contract is the deadline set out in subsection 871 (4) of the Electricity Market Act, from which point electricity shall be generated at the full generating capacity of a contractual generating installation at least once during a one-year period. Electricity production at full generating capacity is checked using Elering’s commercial metering devices installed at the connection point.  

The deadline provided in subsection 871 (4) of the Electricity Market Act for connecting a generating installation to the network depends on the technology of the generating installation: one year for a solar plant, two years for other technology (including storage and onshore wind farms), three years for offshore wind farm after the completion of the connection point or the deadline for the performance of the connection contract. In the case of connection contracts performed by Elering before the entry into force of the amendments to the Electricity Market Act, the start of the deadline provided in subsection 871 (4) of the Electricity Market Act is as of 17 March 2023. 

Therefore, if Elering has performed the connection contract and the customer is not using the generating capacity, the earliest that Elering can issue an invoice for underutilisation fee is one year after the deadline provided in subsection 871 (4) of the Electricity Market Act (the deadline set out in subsection 871 (4) of the Electricity Market Act + one year). 

2. The connection contract has been performed by Elering, the generating installation has been connected to the connection point, and I have paid a deposit to Elering when submitting the connection application. When will Elering return the deposit? 

If the customer has started generating electricity using a generating installation that complies with the connection contract within the deadline provided in subsection 871 (4) of the Electricity Market Act, Elering shall verify the compliance of the connected generating installation with the contract. If the generating installation complies with the contract, Elering shall return the deposit to the customer. Additional rules related to the return of the deposit may also arise from Elering’s connection terms and conditions. 

Once the customer has notified Elering of the commencement of production, Elering shall check the following: 

1) the generating unit agreed upon in the connection contract has been synchronised with the electricity network and commenced production;  

2) SCADA signals have been tested following the synchronisation of the generating unit; 

3) the subscriber has submitted an installation report of the generating unit;  

4) it has been established during the on-site inspection carried out by Elering that the generating unit has been installed in the volume that complies with the connection contract. 

3. I have entered into a connection contract and a temporary network contract with Elering. Based on the generating capacity of which contract is the underutilisation fee applied? 

The temporary network contract is an appendix to the connection contract. If the customer enters into a temporary network contract with Elering within the time limit provided in subsection 871 (4) of the Electricity Market Act and/or the one-year period following thereof, underutilisation fee shall be applied pursuant to subsection 871 (6) of the Electricity Market Act to the entire generating capacity under the connection contract. Entry into a temporary network contract does not change the start and period of calculating underutilisation fee. 

Once the certificate of compliance with network rules (hereinafter certificate of compliance) has been issued on the basis of subsection 55 (1) of the Electricity Market Act for a generating installation established under the connection contract and a permanent network contract has been entered into, the connection contract shall expire and underutilisation fee shall be calculated for the capacity under the permanent network contract on the basis of subsection 871 (7) of the Electricity Market Act.  

4. I have a valid permanent network contract pursuant to which generating capacity under the connection contract has been partially put into use (generating installations have been installed, synchronised and declared compliant), but generating installations have not yet been installed to use the remaining part of the connection contract. How is the underutilisation fee calculated in this case? 

In this case, the customer has both a valid permanent network contract (connection contract relationship) and a connection contract. In this situation, underutilisation fee is calculated separately according to both contracts. For capacity under the network contract, the underutilisation fee is calculated on the basis of subsection 871 (7) of the Electricity Market Act. For generating capacity under the connection contract that has not been put into use pursuant to the network contract, the underutilisation fee is calculated on the basis of subsection 871 (6) of the Electricity Market Act. 

Example: If a connection contract has been entered into for connection to a generating capacity of 50 MVA and this generating capacity has been put into use to the extent of 30 MVA pursuant to a permanent network contract, the underutilisation fee is implemented on the basis of subsection 871 (7) of the Electricity Market Act to the extent of the 30 MVA under the permanent network contract. For the remaining generating capacity of 20 MVA (50 MVA – 30 MVA = 20 MVA), the underutilisation fee is implemented on the basis of subsection 871 (6) of the Electricity Market Act. 

5. I have entered into a connection contract to connect a generating installation with generating capacity of 100 MW. How does the distinction between the 30% and 60% fee amounts set out in subsection 871 (6) of the Electricity Market Act apply to the implementation of the underutilisation fee? 

In order to implement the exception applicable to generating installation whose net capacity exceeds 100 MW provided in subsection 871 (6) of the Electricity Market Act, the customer has to have used at least 50% of the generating capacity under the connection contract. According to the exception, the underutilisation fee is implemented at 30% from 38,000 euros in the first year and at 60% from 38,000 euros in the second year. If a producer using a 100 MW installation uses less than 50 MW of its capacity in the first year, the producer is required to pay 100% for all unused capacity. A prerequisite for applying and calculating the underutilisation fee discount (30% and 60%) is the use of generating capacity to a certain extent. 

As such, when this exception applies, it must be checked whether and how much of the network capacity the generating installation has actually used. 

Example: If a customer has a generating installation with a capacity of 100 MW, the customer was contractually required to use 100 MW of generating capacity. If the customer only used 80 MW, more than 50% of the planned capacity has been used and, in this case, the underutilisation fee is applied to the extent of 30%. So, if generally the underutilisation fee should be 20 x 38,000 = 760,000 euros in this example, the customer is now required to pay 30% of this amount, i.e. 228,000 euros, in the first year. Next year, if the customer used only 50 MW of capacity and should pay 50 x 38,000 = 1.9 million euros, the customer will pay 60% of this amount. 

6. Generating capacity under the connection contract has not been used for reasons beyond the control of the producer, and I would like to submit an application to postpone the implementation of the underutilisation fee. How is the application processed and the decision made? 

To postpone the implementation of the underutilisation fee, the customer is required to submit to Elering an application to postpone the implementation of the underutilisation fee. The application must be in a format which can be reproduced in writing. The implementation of the underutilisation fee can be postponed only if the customer presents evidence with the application, proving that production could not be commenced or that sufficient volume could not be generated for reasons beyond the customer’s control.  

Elering decides on the postponement of the implementation of the underutilisation fee based on the customer’s application on a case-by-case basis. The following are the general principles for processing applications. The list is not exhaustive. Elering may also unilaterally amend or update the following explanations and principles: 

1) A respective steering group is formed to make a decision. 

2) Elering has the right to require additional evidence and/or information to make a decision. 

3) The application is decided on within 60 days, which deadline Elering can extend if information necessary for making a decision has not been provided. 

4) Upon the submission of an application, it is assessed whether the customer has submitted an application for the postponement of the underutilisation fee to Elering at the earliest opportunity after the obstacle arouse when it became clear that it could affect the timely completion and commissioning of the generating installation. 

The application is granted only where the non-use of the generating capacity is not due to the customer. The following principles are taken into consideration when processing the application, and the deadline for putting the capacity into use can be postponed foremost in the following cases (but not limited to): 

1) Delay in the delivery of installations if installations have been ordered in due time and binding agreements for timely delivery of the installations were in force but the agreements have been breached for reasons beyond the control of the subscriber; 

2) Plans/building permits/superficies licences or other authorisations necessary for the establishment of the generating installation have been contested by third parties or another obstacle related to the authorisations which could not be foreseen at the time of the entry into the connection contract has occurred following the entry into the connection contract, and it can therefore be established that the obstacle was beyond the control of the subscriber and causes the subscriber’s connection project to take longer than planned; 

3) Construction and/or delivery contracts for installations have been entered into before the entry into force of the 17 March 2023 version of the Electricity Market Act, which did not allow the customer to account for the deadline provided by law in their connection schedule and therefore does not allow the customer to commence with production within the time limit provided in the Electricity Market Act; 

4) Initiation of judicial proceedings that prevent the construction of a generating installation and which the applicant could not have foreseen at the time of the submission of the connection application; 

5) Circumstances preventing the use the generating capacity for the purposes of subsection 103 (2) of the Law of Obligations Act (force majeure). If force majeure is temporary, the customer has to take measures to mitigate the effects and put generating capacity into use immediately after the effects of force majeure have ceased; 

6) Upon the submission of an application, the subscriber has acted in good faith, i.e. it is assessed whether the subscriber has submitted an application for the postponement of the fee at the earliest opportunity after the obstacle arouse when it was clear that it could affect the timely completion of the generating installation. 

7. I have entered into a connection contract but want to change the technology of the generating installation or add another technology. When can I change or add technology? 

According to subsection 871 (5) of the Electricity Market Act, the technology for the generation of electricity that is stated in the connection application must not be changed. This means that it is not permitted to change the technology until the connection contract has been fulfilled (i.e. the permanent network contract has been entered into).  

However, it is permitted to add to the existing technology if generating installation in accordance with the connection contract has been installed and it is capable of production at full capacity. Therefore, if the subscriber wishes to add technology before entering into a permanent network contract, the following verification operations must be carried out: 

1) the generating unit agreed upon in the connection contract has been synchronised with the electricity network and commenced production; 

2) SCADA signals have been tested following the synchronisation of the generating unit; 

3) the subscriber has submitted an installation report of the generating unit; 

4) it has been established on the basis of the on-site inspection carried out by Elering that the generating unit has been installed in the volume that complies with the connection contract. 

After the following verification operations have been carried out and provided that no deficiencies have been found, Elering can process an additional connection application to add technology. Amendments to the Electricity Market Act are planned regarding the rules on the prohibition of changes to the technology, which are expected to enter into force in 2025.  

8. I would like to decrease or increase generating capacity in the connection contract. How will that affect the implementation of the underutilisation fee? 

Decreasing generating capacity does not change the period for calculating the underutilisation fee, and the amount of the underutilisation fee is calculated based on the new contractual generating capacity. If the reason for decreasing the generating capacity is the failure of Elering to issue an invoice for the underutilisation fee, the agreement to amend the connection contract to decrease the generating capacity has to be entered into no later than by the last date of the period for calculating the underutilisation fee. When increasing the generating capacity, the period for calculating the underutilisation fee does not change, provided that the increased generating capacity does not require Elering to carry out work on the electricity network.  

If, in order to increase the generating capacity, it is necessary for Elering to carry out work to ensure the generating capacity, there will be two separate periods for calculating the underutilisation fee for the generating capacity under the connection contract. The period for calculating underutilisation fee will not change for the generating capacity for which no additional work by Elering is required. The period for calculating underutilisation fee for the generating capacity for which Elering is required to carry out work shall commence one year after the expiry of the deadline provide in subsection 871 (4) of the Electricity Market Act.  

9. When does the calculation of the underutilisation fee on the basis of subsection 871 (6) of the Electricity Market Act end and commence on the basis of subsection 871 (7) of the Electricity Market Act? 

The period for calculating the underutilisation fee and the implementation thereof on the basis of subsection 871 (6) of the Electricity Market Act ends after a permanent network contract for the use of the generating capacity has been entered into, which is considered to complete the connection process. A temporary network contract (valid together with a connection contract and is an appendix to the connection contract) is not a full network contract, which means that the underuse of network capacity under the connection contract is calculated on the basis of subsection 871 (6) of the Electricity Market Act. Upon the entry into a permanent network contract, the underutilisation fee shall be calculated on the basis of subsection 871 (7) of the Electricity Market Act starting from the entry into the permanent network contract. 

1. When does the period for calculating the underutilisation fee start in the case of a permanent network contract? 

On the basis of subsection 871 (7) of the Electricity Market Act, the start of the period for calculating the underutilisation fee is the moment of entry into a permanent network contract, which also terminates the connection contract. For network contracts that were entered into before the 17 March 2023 version of the Electricity Market Act entered into force, the underutilisation fee is implemented after two years. The countdown of this deadline began on 18 March 2023. 

2. The period for calculating the underutilisation fee under a network contract is two years. Does a new two-year period begin after two years have passed? 

According to the current law, the period for calculating the underutilisation fee is two years, during which the customer is required to use the maximum generating capacity under their network contract at least once. If Elering’s commercial metering devices have detected the use of maximum generating capacity at least once during the two-year period for calculating the underutilisation fee, the customer has fulfilled their obligation for the purposes of subsection 871 (7) of the Electricity Market Act and no claim for the underutilisation fee is submitted. After the two-year period for calculating the underutilisation fee has expired, a new two-year period commences during which the customer is required to once again achieve the maximum generating capacity agreed upon in the network contract entered into. Specifications to these rules are planned in the Electricity Market Act, which are expected to enter into force in 2025. 

3. The maximum generating capacity under my network contract is 40 MVA. During the two-year period for calculating the underutilisation fee, the maximum generating capacity was 35 MVA in the first year and 30 MVA in the second year. How much and for what capacity am I required to pay the underutilisation fee? 

Because the period for calculating the underutilisation fee in the case of a permanent network contract is two years and the underutilisation fee is based on a year, the underutilisation fee applies for both years pursuant to subsection 871 (7) of the Electricity Market Act. If Elering’s commercial metering devices have detected the use of the maximum generating capacity at least once during the two-year period (in one year of that two-year period), no invoice for the underutilisation fee is issued. If the capacity is not achieved (in both years of the two-year period), the smallest deficit is considered to be the deficit for the entire period (i.e. for both years) and the fee shall be paid for both years. In the example provided, the underutilisation fee shall be paid for both years for the 5 MVA not used (40 MVA – 35 MVA = 5 MVA). Therefore, the amount of the underutilisation fee is 5 x 38,000 euros for the first year and 5 x 38,000 euros for the second year. 

4. I have entered into a permanent network contract, under which I have put a generating installation whose generating capacity is more than 100 MW into use. Does the 30% and 60% implementation of the underutilisation fee also apply to a network contract if I fail to achieve the maximum generating capacity under the contract? 

Subsection 871 (6) of the Electricity Market Act clearly stipulates only the use of at least 50% of generating capacity under a connection contract. Accordingly, the specification only applies to valid generating capacities under a connection contract, i.e. the 30% and 60% specification for the underutilisation fee for generating installations whose net capacity is 100 MW as provided in subsection 871 (6) of the Electricity Market Act does not apply to customers who have entered into a network contract. When implementing the underutilisation fee on the basis of subsection 871 (7) of the Electricity Market Act, the market participant does not gain additional time to achieve the contractual generating capacity because the prerequisite for entering into a permanent network contract was the establishment of a generating installation that complies with the requirements and, presumably, there are no circumstances that would prevent the market participant from putting the generating capacity prescribed by the network contract into use within two years.  

5. I have entered into a permanent network contract, and I would like to increase or decrease the generating capacity. How will that affect the implementation of the underutilisation fee? 

If the customer wants to decrease generating capacity under a network contract so as not to pay the underutilisation fee, a respective application must be sent to the e-mail address [email protected]. An agreement to amend the contract must be entered into before the end of the period for calculating the underutilisation fee. 

In the event that a customer who has entered into a network contract wants to increase the existing generating capacity, the customer has to submit a connection application and go through a new connection procedure. In this case, the customer has both a permanent network contract and a connection contract at the same time, and the underutilisation fee is calculated separately pursuant to both contracts. For generating capacity under the permanent network contract, the calculation of the underutilisation fee continues on the basis of subsection 871 (7) of the Electricity Market Act. For generating capacity under the connection contract that has not been put into use pursuant to a permanent network contract (to the extent of the generating capacity to be added), the underutilisation fee is calculated on the basis of subsection 871 (6) of the Electricity Market Act. For generating capacity under the connection contract, the calculation of the underutilisation fee shall commence after the deadline provided in subsection 871 (4) of the Electricity Market Act.    

 

1. When does the period for calculating underutilisation fee for use of generating capacity under a connection contract begin? 

The start of the period for calculating underutilisation fee when using generating capacity under a connection contract is the deadline set out in subsection 871 (4) of the Electricity Market Act, from which point electricity shall be generated at the full generating capacity of a contractual generating installation at least once during a one-year period. Electricity production at full generating capacity is checked using Elering’s commercial metering devices installed at the connection point.  

The deadline provided in subsection 871 (4) of the Electricity Market Act for connecting a generating installation to the network depends on the technology of the generating installation: one year for a solar plant, two years for other technology (including storage and onshore wind farms), three years for offshore wind farm after the completion of the connection point or the deadline for the performance of the connection contract. In the case of connection contracts performed by Elering before the entry into force of the amendments to the Electricity Market Act, the start of the deadline provided in subsection 871 (4) of the Electricity Market Act is as of 17 March 2023. 

Therefore, if Elering has performed the connection contract and the customer is not using the generating capacity, the earliest that Elering can issue an invoice for underutilisation fee is one year after the deadline provided in subsection 871 (4) of the Electricity Market Act (the deadline set out in subsection 871 (4) of the Electricity Market Act + one year). 

2. The connection contract has been performed by Elering, the generating installation has been connected to the connection point, and I have paid a deposit to Elering when submitting the connection application. When will Elering return the deposit? 

If the customer has started generating electricity using a generating installation that complies with the connection contract within the deadline provided in subsection 871 (4) of the Electricity Market Act, Elering shall verify the compliance of the connected generating installation with the contract. If the generating installation complies with the contract, Elering shall return the deposit to the customer. Additional rules related to the return of the deposit may also arise from Elering’s connection terms and conditions. 

Once the customer has notified Elering of the commencement of production, Elering shall check the following: 

1) the generating unit agreed upon in the connection contract has been synchronised with the electricity network and commenced production;  

2) SCADA signals have been tested following the synchronisation of the generating unit; 

3) the subscriber has submitted an installation report of the generating unit;  

4) it has been established during the on-site inspection carried out by Elering that the generating unit has been installed in the volume that complies with the connection contract. 

3. I have entered into a connection contract and a temporary network contract with Elering. Based on the generating capacity of which contract is the underutilisation fee applied? 

The temporary network contract is an appendix to the connection contract. If the customer enters into a temporary network contract with Elering within the time limit provided in subsection 871 (4) of the Electricity Market Act and/or the one-year period following thereof, underutilisation fee shall be applied pursuant to subsection 871 (6) of the Electricity Market Act to the entire generating capacity under the connection contract. Entry into a temporary network contract does not change the start and period of calculating underutilisation fee. 

Once the certificate of compliance with network rules (hereinafter certificate of compliance) has been issued on the basis of subsection 55 (1) of the Electricity Market Act for a generating installation established under the connection contract and a permanent network contract has been entered into, the connection contract shall expire and underutilisation fee shall be calculated for the capacity under the permanent network contract on the basis of subsection 871 (7) of the Electricity Market Act.  

4. I have a valid permanent network contract pursuant to which generating capacity under the connection contract has been partially put into use (generating installations have been installed, synchronised and declared compliant), but generating installations have not yet been installed to use the remaining part of the connection contract. How is the underutilisation fee calculated in this case? 

In this case, the customer has both a valid permanent network contract (connection contract relationship) and a connection contract. In this situation, underutilisation fee is calculated separately according to both contracts. For capacity under the network contract, the underutilisation fee is calculated on the basis of subsection 871 (7) of the Electricity Market Act. For generating capacity under the connection contract that has not been put into use pursuant to the network contract, the underutilisation fee is calculated on the basis of subsection 871 (6) of the Electricity Market Act. 

Example: If a connection contract has been entered into for connection to a generating capacity of 50 MVA and this generating capacity has been put into use to the extent of 30 MVA pursuant to a permanent network contract, the underutilisation fee is implemented on the basis of subsection 871 (7) of the Electricity Market Act to the extent of the 30 MVA under the permanent network contract. For the remaining generating capacity of 20 MVA (50 MVA – 30 MVA = 20 MVA), the underutilisation fee is implemented on the basis of subsection 871 (6) of the Electricity Market Act. 

5. I have entered into a connection contract to connect a generating installation with generating capacity of 100 MW. How does the distinction between the 30% and 60% fee amounts set out in subsection 871 (6) of the Electricity Market Act apply to the implementation of the underutilisation fee? 

In order to implement the exception applicable to generating installation whose net capacity exceeds 100 MW provided in subsection 871 (6) of the Electricity Market Act, the customer has to have used at least 50% of the generating capacity under the connection contract. According to the exception, the underutilisation fee is implemented at 30% from 38,000 euros in the first year and at 60% from 38,000 euros in the second year. If a producer using a 100 MW installation uses less than 50 MW of its capacity in the first year, the producer is required to pay 100% for all unused capacity. A prerequisite for applying and calculating the underutilisation fee discount (30% and 60%) is the use of generating capacity to a certain extent. 

As such, when this exception applies, it must be checked whether and how much of the network capacity the generating installation has actually used. 

Example: If a customer has a generating installation with a capacity of 100 MW, the customer was contractually required to use 100 MW of generating capacity. If the customer only used 80 MW, more than 50% of the planned capacity has been used and, in this case, the underutilisation fee is applied to the extent of 30%. So, if generally the underutilisation fee should be 20 x 38,000 = 760,000 euros in this example, the customer is now required to pay 30% of this amount, i.e. 228,000 euros, in the first year. Next year, if the customer used only 50 MW of capacity and should pay 50 x 38,000 = 1.9 million euros, the customer will pay 60% of this amount. 

6. Generating capacity under the connection contract has not been used for reasons beyond the control of the producer, and I would like to submit an application to postpone the implementation of the underutilisation fee. How is the application processed and the decision made? 

To postpone the implementation of the underutilisation fee, the customer is required to submit to Elering an application to postpone the implementation of the underutilisation fee. The application must be in a format which can be reproduced in writing. The implementation of the underutilisation fee can be postponed only if the customer presents evidence with the application, proving that production could not be commenced or that sufficient volume could not be generated for reasons beyond the customer’s control.  

Elering decides on the postponement of the implementation of the underutilisation fee based on the customer’s application on a case-by-case basis. The following are the general principles for processing applications. The list is not exhaustive. Elering may also unilaterally amend or update the following explanations and principles: 

1) A respective steering group is formed to make a decision. 

2) Elering has the right to require additional evidence and/or information to make a decision. 

3) The application is decided on within 60 days, which deadline Elering can extend if information necessary for making a decision has not been provided. 

4) Upon the submission of an application, it is assessed whether the customer has submitted an application for the postponement of the underutilisation fee to Elering at the earliest opportunity after the obstacle arouse when it became clear that it could affect the timely completion and commissioning of the generating installation. 

The application is granted only where the non-use of the generating capacity is not due to the customer. The following principles are taken into consideration when processing the application, and the deadline for putting the capacity into use can be postponed foremost in the following cases (but not limited to): 

1) Delay in the delivery of installations if installations have been ordered in due time and binding agreements for timely delivery of the installations were in force but the agreements have been breached for reasons beyond the control of the subscriber; 

2) Plans/building permits/superficies licences or other authorisations necessary for the establishment of the generating installation have been contested by third parties or another obstacle related to the authorisations which could not be foreseen at the time of the entry into the connection contract has occurred following the entry into the connection contract, and it can therefore be established that the obstacle was beyond the control of the subscriber and causes the subscriber’s connection project to take longer than planned; 

3) Construction and/or delivery contracts for installations have been entered into before the entry into force of the 17 March 2023 version of the Electricity Market Act, which did not allow the customer to account for the deadline provided by law in their connection schedule and therefore does not allow the customer to commence with production within the time limit provided in the Electricity Market Act; 

4) Initiation of judicial proceedings that prevent the construction of a generating installation and which the applicant could not have foreseen at the time of the submission of the connection application; 

5) Circumstances preventing the use the generating capacity for the purposes of subsection 103 (2) of the Law of Obligations Act (force majeure). If force majeure is temporary, the customer has to take measures to mitigate the effects and put generating capacity into use immediately after the effects of force majeure have ceased; 

6) Upon the submission of an application, the subscriber has acted in good faith, i.e. it is assessed whether the subscriber has submitted an application for the postponement of the fee at the earliest opportunity after the obstacle arouse when it was clear that it could affect the timely completion of the generating installation. 

7. I have entered into a connection contract but want to change the technology of the generating installation or add another technology. When can I change or add technology? 

According to subsection 871 (5) of the Electricity Market Act, the technology for the generation of electricity that is stated in the connection application must not be changed. This means that it is not permitted to change the technology until the connection contract has been fulfilled (i.e. the permanent network contract has been entered into).  

However, it is permitted to add to the existing technology if generating installation in accordance with the connection contract has been installed and it is capable of production at full capacity. Therefore, if the subscriber wishes to add technology before entering into a permanent network contract, the following verification operations must be carried out: 

1) the generating unit agreed upon in the connection contract has been synchronised with the electricity network and commenced production; 

2) SCADA signals have been tested following the synchronisation of the generating unit; 

3) the subscriber has submitted an installation report of the generating unit; 

4) it has been established on the basis of the on-site inspection carried out by Elering that the generating unit has been installed in the volume that complies with the connection contract. 

After the following verification operations have been carried out and provided that no deficiencies have been found, Elering can process an additional connection application to add technology. Amendments to the Electricity Market Act are planned regarding the rules on the prohibition of changes to the technology, which are expected to enter into force in 2025.  

8. I would like to decrease or increase generating capacity in the connection contract. How will that affect the implementation of the underutilisation fee? 

Decreasing generating capacity does not change the period for calculating the underutilisation fee, and the amount of the underutilisation fee is calculated based on the new contractual generating capacity. If the reason for decreasing the generating capacity is the failure of Elering to issue an invoice for the underutilisation fee, the agreement to amend the connection contract to decrease the generating capacity has to be entered into no later than by the last date of the period for calculating the underutilisation fee. When increasing the generating capacity, the period for calculating the underutilisation fee does not change, provided that the increased generating capacity does not require Elering to carry out work on the electricity network.  

If, in order to increase the generating capacity, it is necessary for Elering to carry out work to ensure the generating capacity, there will be two separate periods for calculating the underutilisation fee for the generating capacity under the connection contract. The period for calculating underutilisation fee will not change for the generating capacity for which no additional work by Elering is required. The period for calculating underutilisation fee for the generating capacity for which Elering is required to carry out work shall commence one year after the expiry of the deadline provide in subsection 871 (4) of the Electricity Market Act.  

9. When does the calculation of the underutilisation fee on the basis of subsection 871 (6) of the Electricity Market Act end and commence on the basis of subsection 871 (7) of the Electricity Market Act? 

The period for calculating the underutilisation fee and the implementation thereof on the basis of subsection 871 (6) of the Electricity Market Act ends after a permanent network contract for the use of the generating capacity has been entered into, which is considered to complete the connection process. A temporary network contract (valid together with a connection contract and is an appendix to the connection contract) is not a full network contract, which means that the underuse of network capacity under the connection contract is calculated on the basis of subsection 871 (6) of the Electricity Market Act. Upon the entry into a permanent network contract, the underutilisation fee shall be calculated on the basis of subsection 871 (7) of the Electricity Market Act starting from the entry into the permanent network contract. 

1. When does the period for calculating the underutilisation fee start in the case of a permanent network contract? 

On the basis of subsection 871 (7) of the Electricity Market Act, the start of the period for calculating the underutilisation fee is the moment of entry into a permanent network contract, which also terminates the connection contract. For network contracts that were entered into before the 17 March 2023 version of the Electricity Market Act entered into force, the underutilisation fee is implemented after two years. The countdown of this deadline began on 18 March 2023. 

2. The period for calculating the underutilisation fee under a network contract is two years. Does a new two-year period begin after two years have passed? 

According to the current law, the period for calculating the underutilisation fee is two years, during which the customer is required to use the maximum generating capacity under their network contract at least once. If Elering’s commercial metering devices have detected the use of maximum generating capacity at least once during the two-year period for calculating the underutilisation fee, the customer has fulfilled their obligation for the purposes of subsection 871 (7) of the Electricity Market Act and no claim for the underutilisation fee is submitted. After the two-year period for calculating the underutilisation fee has expired, a new two-year period commences during which the customer is required to once again achieve the maximum generating capacity agreed upon in the network contract entered into. Specifications to these rules are planned in the Electricity Market Act, which are expected to enter into force in 2025. 

3. The maximum generating capacity under my network contract is 40 MVA. During the two-year period for calculating the underutilisation fee, the maximum generating capacity was 35 MVA in the first year and 30 MVA in the second year. How much and for what capacity am I required to pay the underutilisation fee? 

Because the period for calculating the underutilisation fee in the case of a permanent network contract is two years and the underutilisation fee is based on a year, the underutilisation fee applies for both years pursuant to subsection 871 (7) of the Electricity Market Act. If Elering’s commercial metering devices have detected the use of the maximum generating capacity at least once during the two-year period (in one year of that two-year period), no invoice for the underutilisation fee is issued. If the capacity is not achieved (in both years of the two-year period), the smallest deficit is considered to be the deficit for the entire period (i.e. for both years) and the fee shall be paid for both years. In the example provided, the underutilisation fee shall be paid for both years for the 5 MVA not used (40 MVA – 35 MVA = 5 MVA). Therefore, the amount of the underutilisation fee is 5 x 38,000 euros for the first year and 5 x 38,000 euros for the second year. 

4. I have entered into a permanent network contract, under which I have put a generating installation whose generating capacity is more than 100 MW into use. Does the 30% and 60% implementation of the underutilisation fee also apply to a network contract if I fail to achieve the maximum generating capacity under the contract? 

Subsection 871 (6) of the Electricity Market Act clearly stipulates only the use of at least 50% of generating capacity under a connection contract. Accordingly, the specification only applies to valid generating capacities under a connection contract, i.e. the 30% and 60% specification for the underutilisation fee for generating installations whose net capacity is 100 MW as provided in subsection 871 (6) of the Electricity Market Act does not apply to customers who have entered into a network contract. When implementing the underutilisation fee on the basis of subsection 871 (7) of the Electricity Market Act, the market participant does not gain additional time to achieve the contractual generating capacity because the prerequisite for entering into a permanent network contract was the establishment of a generating installation that complies with the requirements and, presumably, there are no circumstances that would prevent the market participant from putting the generating capacity prescribed by the network contract into use within two years.  

5. I have entered into a permanent network contract, and I would like to increase or decrease the generating capacity. How will that affect the implementation of the underutilisation fee? 

If the customer wants to decrease generating capacity under a network contract so as not to pay the underutilisation fee, a respective application must be sent to the e-mail address [email protected]. An agreement to amend the contract must be entered into before the end of the period for calculating the underutilisation fee. 

In the event that a customer who has entered into a network contract wants to increase the existing generating capacity, the customer has to submit a connection application and go through a new connection procedure. In this case, the customer has both a permanent network contract and a connection contract at the same time, and the underutilisation fee is calculated separately pursuant to both contracts. For generating capacity under the permanent network contract, the calculation of the underutilisation fee continues on the basis of subsection 871 (7) of the Electricity Market Act. For generating capacity under the connection contract that has not been put into use pursuant to a permanent network contract (to the extent of the generating capacity to be added), the underutilisation fee is calculated on the basis of subsection 871 (6) of the Electricity Market Act. For generating capacity under the connection contract, the calculation of the underutilisation fee shall commence after the deadline provided in subsection 871 (4) of the Electricity Market Act.    

 

Mirjam Pihlak

Head of Grid Services Unit

+372 715 1309

[email protected]

Arno Niidumaa

Project Manager

+372 5650 8152

[email protected]

Emma Kask

Project Manager

+372 5850 9834

[email protected]

Hanna-Lisette Ots

Project Manager

+372 5332 9239

[email protected]

Andres Malõšev

Project Manager

+372 715 1303

[email protected]

Indrek Martin

Project Manager

+372 715 1306

[email protected]

Toomas Tenno

Project Manager

+372 5807 2616

[email protected]

Ly Alaver

Project Assistant

+372 5559 4838

[email protected]