Research RES LEGAL Access to the grid Country: Lithuania

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1 Research RES LEGAL Access to the grid Country: Lithuania 1. Overview of access to the grid Overview of access to the grid Statutory provisions Connection to the grid Usage of the grid Expansion of the grid Grid operators are obliged to connect renewable electricity generation systems to their grid without discriminating against certain system operators. The operators of such systems are entitled to a discount on the connection fee. The grid operators are obliged to transmit electricity from renewable sources as a priority. However, the grid operator is not obligated to expand the grid. Law on Electricity (Elektros Energetikos Istatymas - Valstybes zinios, No , 2000; No , 2004) Resolution No. 1474/2001 (Nutarimas Del teises aktu, butinu Lietuvos Respublikos elektros energetikos istatymui igyvendinti, patvirtinimo Resolution Adopting the Necessary Legal Basis for the Introduction of the Law on Electricity) Resolution No. O3-85/2004 (Nutarimas Del Visuomeniniu elektros energijos Resolution of the National Control Commission for Prices and Energy on the Methodology for Setting the Prices for Electricity Transmission and Distribution Services and Their Respective Price Caps) Regulation on Services of Public Interest (Isakymas Del Lietuvos Respublikos ukio ministro 2001 m. gruodžio 18 d. isakymo) Grid operators are obliged to connect renewable electricity generation systems to their grids without discriminating against certain system operators. The charges on connection of these systems shall be reduced by 40%. The grid operator is entitled to account for the money thus lost when calculating the electricity prices for the following year. Thus, he can compensate for his losses through the revenue from electricity prices. If the grid capacity is insufficient, the grid operators shall guarantee the preferential transmission of electricity generated from renewable energy. The grid operators are obliged to expand their grids according to the general regulations of energy law. The grid operators are not obliged to expand their grids on the request of operators of renewable electricity generation systems. 1

2 2. Basic information on legal sources Name of legal source (original language) Name of legal source (full name) Name of legal source (English) Abbreviated form Type of law Document structure Entering into force Latest amendment Elektros Energetikos Istatymas - Valstybes zinios, No , 2000; No , 2004 (Law on Electricity) Law on Electricity Nutarimas Del teises aktu, butinu Lietuvos Respublikos elektros energetikos istatymui igyvendinti, patvirtinimo (Resolution No. 1474/2001) Nutarimas Del teises aktu, butinu Lietuvos Respublikos elektros energetikos istatymui igyvendinti, patvirtinimo - Valstybes zinios, No , 2001 Resolution on the Approval of the Legal Acts Necessary for the Implementation of the Law on Electricity Nutarimas Del Visuomeniniu elektros energijos (Resolution No. O3-85/2004) Nutarimas Del Visuomeniniu elektros energijos tarifu viršutines ribos nustatymo ir Elektros energijos perdavimo ir skirstymo paslaugu kainu viršutiniu ribu nustatymo metodiku pakeitimo - Valstybes zinios, No , 2004 Resolution of the National Control Commission for Prices and Energy on the Methodology for Setting the Prices for Electricity Transmission and Distribution Services and Their Respective Price Caps Law on Electricity Resolution No. 1474/2001 Resolution No. O3-85/2004 Act of parliament Government resolution Resolution of the National Control Commission for Prices and Energy Chapters, articles, paragraphs Items, documents, paragraphs Chapters, items 01/01/ /01/ /09/ /07/ /12/ /08/2008 Future amendments Purpose This act regulates the basic principles for the generation, transmission, distribution and supply of energy within the Republic of Lithuania, defines the relations between energy suppliers and The fifth document of the Resolution, which is part of Item 1, regulates the procedure for subsidising the generation and purchase of electricity from renewable sources. This resolution lays down the method of assessment of electricity prices and grid usage fees. 2

3 consumers, and incentivises competition in the electricity sector. Relation to renewable energy Link to full text of legal source (original language) Link to full text of legal source (English) In pursuance of art. 9 of the Law on Electricity, the introduction of the obligation to provide public services shall incentivise the producers to generate electricity from renewable sources. This act also establishes rules for the access of renewable energy to the grid. a.showdoc_l?p_id=350351&p_query =&p_tr2= a.showdoc_l?p_id= Please note: The English translation does not provide information on the latest amendment of the Act. The Resolution promotes renewable energy only. wdoc_e?p_id=290177&p_query=&p_tr2= wdoc_e?p_id=312291&p_query=&p_tr2= The Resolution provides rules on passing on the costs arising from the purchase of electricity from renewable sources to the consumers. It also regulates the usage of the grid by renewable energy. wdoc_e?p_id=240755&p_query=&p_tr2= electricity_market/method_dis..._pricecap EN.doc Name of legal source (original language) Name of legal source (full name) Isakymas Del Lietuvos Respublikos ukio ministro 2001 m. gruodžio 18 d. isakymo (Order on Services of General Interest) Isakymas Del Lietuvos Respublikos ukio ministro 2001 m. gruodžio 18 d. isakymo Nr. 380 "Del teises aktu, butinu Lietuvos Respublikos elektros 3

4 Name of legal source (English) Abbreviated form Type of law Document structure Entering into force energetikos istatymui igyvendinti, patvirtinimo" pakeitimo - Valstybes zinios, No , 2006 Order by the Minister of Economy of Lithuania on the Amendment of the Order by the Minister of Economy of Lithuania No. 380 as of 18th December 2001 on the Approval of the Legal Acts Necessary for the Implementation of the Law of the Republic of Lithuania on Electricity Order on Services of General Interest Ministerial order Chapters, numbers 01/01/2007 Latest amendment Future amendments Purpose Relation to renewable energy Link to full text of legal source (original language) Link to full text of legal source (English) This Order establishes provisions on the obligation to provide services of general interest. This order contains special provisions on renewable energy, among other things on its access to the grid. a.showdoc_e?p_id=289670&p_query =&p_tr2= 4

5 Further information Institution (name) Website Name of contact person (optional) Telephone number (head office) (optional) Valstybine kainu ir NCC Website Aistija Zubaviciute energetikos kontroles komisija (NCC) National Control Commission for Prices and Energy Energetikos agentura (EA) EA Website Energy Agency Lietuvos Respublikos Energetikos ministerija - Ministry of Economy Website of the Ministry of Economy

6 3. Connection to the grid Abbreviated form of legal source Legal basis for a claim/addressees Priority to renewable energy (qualitative criteria) Capacity limits (quantitative criteria) Limitations/deadlines Arising/enforcement of a claim Law on Electricity Resolution No. 1474/2001 Order on Services of General Interest ( ) statutory basis ( x ) contractual basis Entitled party Obligated party ( ) Priority to renewable energy ( x ) Non-discrimination According to the National Control Commission for Prices and Energy, a grid connection agreement is the basis for the claim for connection to the grid by the plant operator against the grid operator. The party entitled to connection is the plant operator (Paragraph 12 of the fifth Document in Resolution No. 1474/2001, Item 1). According to the Ministry of Energy, systems must meet the technical conditions for connection set by the grid operator. The party obligated to connect is either the transmission grid operator or the distribution grid operator, depending on the plant's capacity. Renewable electricity generation systems whose capacity does not exceed 6 MW shall be connected to the distribution grid only. Systems whose capacity is higher shall be connected either to the distribution grid or the transmission grid, depending on the technical requirements (Paragraph 5 of the fifth Document in Resolution No. 1474/2001, Item 1). Renewable energy is not given priority. The grid operator shall grant access to the distribution or transmission grid without discriminating against certain plant operators (art. 15, 19 par. 2 Law on Electricity). However, the operators of renewable electricity generation systems are eligible for a 40% discount on the grid connection charges (Paragraph 12 of the fifth Document in Resolution No. 1474/2001, Item 1). According to the National Control Commission for Prices and Energy, limitations and deadlines may be specified in the connection agreement. According to the National Control Commission for Prices and Energy, the claim for connection to the grid arises on the date of conclusion of the grid connection agreement. Funding State Consumers The consumers bear the costs of the 40% reduction on the connection fee through the electricity prices (Paragraph 12 of the fifth Document in Resolution No. 1474/2001, Item 1). 6

7 Grid operator System operator Distribution mechanism The plant operator shall pay 60% of the grid connection charges (implied by Paragraph 12 of the fifth Document in Resolution No. 1474/2001, Item 1). System operators are obliged to bear 60% of the costs of connection of a system to the grid. The remaining 40% of the costs are funded by income from services of public interest. This part of the costs is reimbursed to the responsible grid operator in the year following the connection of the system in question. According to the National Control Commission for Prices and Energy, the costs of services of public interest are included in the electricity price and thus borne by the final consumers (par. 12 of the fifth document in Resolution No. 1474/2001, Item 1; Chapter II. par Order on Services of General Interest). 7

8 4. Usage of the grid Abbreviated form of legal source Legal basis for a claim/addressees Order on Services of General Interest Resolution No. 1474/2001 Resolution No. O3-85/2004 ( ) statutory basis ( x ) contractual basis Entitled party According to the National Control Commission for Prices and Energy, the grid operator and the plant operator shall conclude an agreement on the usage of the grid. The grid operator is obliged to enter into this agreement. This obligation results from the obligation to purchase electricity generated from renewable energy sources (Chapter II no. 7, of the Order on Services of General Interest). The persons entitled are the system operators. Obligated party The obligated party is the grid operator. Priority to renewable energy (qualitative criteria) Capacity limits (quantitative criteria) Limitations/deadlines Arising/enforcement of a claim ( x ) Priority to renewable energy ( ) Non-discrimination The grid operators shall give priority to electricity from renewable sources when transmitting electricity (Chapter II. par. 8 Order on Services of General Interest). According to the National Control Commission for Prices and Energy, limitations and deadlines may be specified in the connection agreement. According to the National Control Commission for Prices and Energy, the claim for usage of the grid arises on the date on which the grid connection agreement is concluded. Funding State Consumers Grid operator System operator Distribution mechanism According to the Ministry of Energy, the consumers bear the costs of grid usage. According to the Ministry of Energy, the costs for usage of the grid are passed on to the consumers through the electricity prices. 8

9 5. Expansion of the grid Abbreviated form of legal source Legal basis for a claim/addressees Order on Services of General Interest Resolution No. 1474/2001 ( ) statutory basis ( x ) contractual basis Entitled party The grid connection agreement may give rise to a claim for a grid expansion. In contrast to this, statutory law does not explicitly oblige the grid operator to expand his grid to transmit electricity generated from renewable energy. However, the grid operators shall expand their grids according to the general provisions of energy law (art. 17, 21 Law on Electricity). The persons entitled are the system operators. Obligated party The obligated party is the grid operator. Priority to renewable energy (qualitative criteria) Capacity limits (quantitative criteria) Limitations/deadlines Arising/enforcement of a claim ( ) Priority to renewable energy ( x ) Non-discrimination Like the connection of a plant to the grid, a possible expansion of the grid shall be carried out without any plant operator being discriminated against. However, the plant operators are entitled to a 40% reduction on the grid connection fees (Paragraph 12 of the fifth Document in Resolution No. 1474/2001, Item 1). According to the National Control Commission for Prices and Energy, these fees also include the costs of a grid expansion. The Law does not stipulate capacity limits. However, according to the Ministry of Energy, the grid operators often refuse to expand their grids due to capacity limits. According to the National Control Commission for Prices and Energy, limitations and deadlines concerning a possible expansion of the grid depend on the terms of the respective connection agreement. According to the National Control Commission for Prices and Energy, claims for an expansion of the grid may arise from the connection agreements. Funding State Consumers Grid operator System operator The consumers have to pay the electricity price, which includes the 40% reduction on the grid connection charges and the costs of a grid expansion (Paragraph 12 of the fifth Document in Resolution no- 1474/2001, Item 1). The plant operator shall pay 60% of the grid connection charges (implied by Paragraph 12 of the fifth Document in Resolution No. 1474/2001, Item 1). 9

10 Distribution mechanism System operators are obliged to bear 60% of the costs of connection of a system to the grid. The remaining 40% of the costs are funded by income from services of public interest. This part of the costs is reimbursed to the responsible grid operator in the year following the connection of the system in question. According to the National Control Commission for Prices and Energy, the costs of services of public interest are included in the electricity price and borne by the final consumers (par. 12 of the fifth document in Resolution No. 1474/2001, Item 1; Chapter II. par Order on Services of General Interest). 10