Deadlines for issuing grid connection conditions and the possibility of their extension

Securing a grid connection – in addition to holding legal title to the property and completing the necessary administrative procedures (including, amongst other things, an environmental decision, a local spatial development plan/development conditions or a planning permission) – is one of the most important stages in the development of a photovoltaic project, as only a grid-connected installation can supply electricity to consumers and generate revenue from its sale. The grid connection procedure consists of two main stages: obtaining grid connection conditions and concluding and implementing the connection agreement. This article outlines the issues surrounding connection conditions, the deadlines for their issuance and the possibilities for their extension.

Pursuant to Article 7(1) of the Act of 10 April 1997 – Energy Law (i.e. Journal of Laws of 2022, item 1385, as amended) (hereinafter referred to as: ‘the Energy Law’), an energy undertaking engaged in the transmission or distribution of gaseous fuels or energy is obliged to conclude a grid connection agreement with entities applying for grid connection, on the basis of equal treatment and, as a priority, connecting renewable energy installations, provided that the technical and economic conditions for grid connection and the supply of such fuels or energy exist, and the party requesting the agreement meets the conditions for grid connection and supply. What is crucial here is equal treatment and connection, as well as the priority given to renewable energy installations, provided they meet the technical and economic conditions for grid connection and energy supply.

In accordance with the above, the obligation to conclude a grid connection agreement is not unconditional, but arises when the technical and economic conditions for grid connection exist and when the party requesting grid connection meets the conditions for grid connection (cf. Judgment of the Regional Administrative Court in Łódź of 28 April 2017, I ACa 1415/16).

The conditions for grid connection and supply are considered on a case-by-case basis for each application. Their determination depends, amongst other things, on the type of facility/installation being connected, the connection capacity and the type of grid.

The detailed requirements concerning the application for the determination of connection conditions are regulated by Article 7(3b) of the Energy Act. This must include, in particular, the identification of the entity applying for the connection, a description of the property, facility or premises to be connected, and the information necessary to ensure compliance with the requirements set out in Article 7a of the Energy Act. The elements of the application for the determination of connection conditions are set out in § 6 of the Regulation of the Minister of Climate and Environment of 22 March 2023 on detailed conditions for the operation of the electricity system (Journal of Laws, item 819).

DEADLINES AND ISSUANCE OF CONNECTION CONDITIONS

Connection conditions are valid for 2 years from the date of their delivery. During their period of validity, the connection conditions constitute a conditional obligation on the part of the energy company engaged in the transmission or distribution of electricity or the transmission or distribution of heat to conclude a connection agreement for the electricity or heating network, as applicable. A party’s right to demand the conclusion of a connection agreement is deemed to be preserved provided that, within the period of validity of the connection conditions, it submits the relevant declarations or applies to the President of the Energy Regulatory Office for a ruling on the conclusion of the agreement pursuant to Article 8(1) of the Energy Law.

Deadlines play a key role in the grid connection process. Energy companies have specific deadlines for issuing connection conditions depending on the type of facility being connected and the grid voltage. These deadlines are:

1. 21 days from the date of submission of the application by an applicant classified in connection group V or VI, connecting to a network with a voltage not exceeding 1 kV;

2. 30 days from the date of submission of the application by an applicant classified in connection group IV, connecting to a network with a voltage not exceeding 1 kV;

3. 60 days from the date of submission of the application by an applicant classified in connection group III or VI, connecting to a network with a voltage exceeding 1 kV, not equipped with a source or storage facility for electricity;

4. 120 days from the date of submission of the application by an applicant classified in connection group III or VI – for a facility being connected to a network with a voltage higher than 1 kV and equipped with a source or storage facility for electricity;

5. 150 days from the date of submission of the application by an applicant classified in connection group I or II.

In the case of an application for the issuance of conditions for connecting a source or storage facility for electricity to an electricity network with a voltage higher than 1 kV, the time limits are calculated from the date of payment of the advance.

It is worth noting that these time limits do not include periods during which the applicant must carry out specific actions, nor periods of delay caused by the applicant’s fault or for reasons beyond the control of the electricity company.

EXTENSION OF TIME LIMITS

In particularly justified cases, the energy company may extend the time limits by up to half the original period. However, this may only take place after the applicant has been informed in advance and the reasons for such an extension have been justified. However, energy companies involved in the transmission or distribution of gas or heat may extend the deadlines specified in the Act by up to the same duration, also subject to prior notification of the applicant and provision of justification for such an extension.

Thus, in the case of an energy company, subject to prior notification of the applicant, the deadline for issuing connection conditions may be extended – depending on the connection group classification – by up to 75 days.

Penalty for Failure to Meet Deadlines

As provided for in Article 56(1)(18) of the Energy Law, failure to issue connection conditions within the prescribed deadlines (including extended ones) is subject to a financial penalty. The amount of the financial penalty imposed in this case may not be less than PLN 1,500 for each day of delay in issuing the conditions for connection to the grid.

SUMMARY

The Energy Law obliges energy companies to enter into connection agreements with entities on the basis of equal treatment. Renewable energy installations take priority. Connection conditions, which form part of the investment process, are determined on a case-by-case basis according to a number of criteria and remain valid for two years from the date of their delivery. The Act sets out specific deadlines by which energy companies must issue connection conditions. These deadlines vary depending on the type of installation and the grid voltage, ranging from 21 to 150 days. In justified cases, these deadlines may be extended by up to half of the original period, provided the applicant is notified in advance. However, failure to issue connection conditions within the specified deadlines is punishable by a fine.

https://www.pse.pl/dane-systemowe/funkcjonowanie-kse/raporty-miesieczne-z-funkcjonowania-rb/raporty-miesieczne (accessed: 15 September 2023).

Author

Martyna Dobkowska

Associate

She specializes in civil, commercial and business law. In the corporate and energy department, her activities are mainly based on providing corporate services to companies, reviewing and preparing commercial contracts, drafting litigation and non-litigation pleadings and preparing analyses and legal opinions, particularly in the sphere of business law and energy law. She also has professional experience in administrative and civil proceedings, which she gained in Warsaw law firms. She supports the Firm's…

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