Energy

The CNMC approves the circular regulating access and connection to electricity grids for demand-side installations

Published on 22nd Oct 2024

The expected new Circular renews the methodology for access and connection to the grid of demand-side facilities, responding to new electricity consumption patterns

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The National Markets and Competition Commission (CNMC) has approved Circular 1/2024 of 27 September, which establishes the methodology and conditions for access and connection to the electricity transmission and distribution grids of demand-side facilities (the "Circular"), which will enter into force on 12 January 2025.

In a context of increasing requests of connection permits from new players in the sector -data centres, BESS and electric vehicle charging infrastructures-, the regulator updates the procedure for access to the grid and includes, among other new features, flexible access capacity.

Contents and criteria for access and connection to the electricity grid

The Circular sets out the minimum information required in access and connection applications, together with the technical criteria necessary to assess the access capacity and viability of demand-side facilities. In order to determine the access capacity of a demand facility to the grid, it will be necessary to carry out a specific study to assess the maximum active capacity available at certain connection point, while the viability will be determined by the technical and safety conditions applicable to the electrical coupling of the facilities.

If any of these requirements are not met, the application will be rejected, requiring the grid manager to provide a justification report containing the grounds and all the data, references and calculations that have motivated its decision.

Transparency and public access to information

In order to streamline and simplify the access and connection procedure, the Circular details the minimum content to be included by the different grid managers in their web platforms for the management and monitoring of the applications, providing the processing guidelines in the most transparent and user-friendly way possible.

In this regard, they must include specific tools to fully manage applications related to self-consumption and electric vehicle charging infrastructures. They are granted a period of ten months from the entry into force of the Circular to adapt the contents of the platforms.

New categories of access capacity

As the most relevant novelty, the Circular introduces new types of access capacity:

  1. Firm or ordinary, understood as the maximum active capacity with guaranteed supply during all hours of the year; and
  2. Flexible, i.e., where supply is not guaranteed at all times of the year, as one of the new specific criteria is not met following the capacity analysis.

Regarding firm capacity, the alternative firm capacity is also introduced, which the grid operator must offer to the applicant when there is no access capacity to meet the requested volume, although a percentage of such capacity is available. On a temporary basis, due to its nature or technological conditioning, the firm access capacity requested may be zero, although there will be cases in which a minimum firm access capacity may be required. However, flexible access capacity may not be requested or obtained for those supplies which, by law, must be guaranteed.

However, the Circular itself stipulates that flexible access capacity permits cannot yet be requested or granted until the CNMC approves its regulatory development.

A methodology still under development

This new connection procedure, long demanded by the sector, is a truly important but not definitive milestone. In this sense, the approval of the detailed specifications is pending, which will definitively establish the criteria for assessing the existence or not of access capacity, the viability of the connection point and the influence on the grid upstream of the demand facilities; in addition to the different types of flexible access permits or specific criteria for BESS.

Not surprisingly, the Circular clearly states that the CNMC may subsequently continue to approve detailed specifications or requirements for new demand models that may arise as a result of further development of state or regional regulations.

Should you wish to know more about the issue discussed in this note, please do not hesitate to contact one of our experts listed below or your usual contact at Osborne Clarke.

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* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

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