Transelectrica: 8 Concrete Measures to Stimulate Real Investment and Regulate Connection of New Production Capacities

The National Power Grid Company Transelectrica, in its capacity as Transmission System Operator (TSO), participated in the public debate organized by the National Energy Regulatory Authority (ANRE) regarding the draft amendment to the regulatory framework governing the connection of users to the public power grid. Transelectrica presented a set of proposals and comments, submitted to ANRE during the consultation period, based on its direct experience in the development and operation of the power transmission grid.

These proposals aim both to stimulate real investments in new generation capacity and to ensure a predictable and rigorous framework that allows for the integration of viable and mature projects into the grid, with the goal of ensuring the safe, stable, and continuous operation of the National Power System (NPS)

 

Specific proposals for amending the Regulation on the connection of users to the public power grid

Transelectrica has drafted and submitted to ANRE a set of eight specific proposals to amend the Regulation on the connection of users to the public power grid.

• Reassessment of grid reinforcements prior to the commissioning of power plants

The reinforcement works identified following system analyses must be reassessed prior to the commissioning of generation capacity, and the capacity must be operated in accordance with the needs of the National Power System.

• Clarification of land ownership regime

The land required for specific reinforcement works (including works between the connection point and the boundary point, and the land needed to expand an existing substation) must be owned outright—not held under a leasehold—as of the signing of the connection contract, in order to allow for its transfer to the Network Operator’s assets.

• Elimination of the index-based fee for reinforcement work

This fee does not consistently reflect actual costs or direct benefits for users or for electrical installations, and therefore needs to be eliminated.

• Strict adherence to contractual deadlines

In the event of a connection contract extension, if the user does not submit the application and required documents at least 30 days before the expiration date, the application will be closed.

• Limiting contractual changes and introducing progress criteria

The connection contract may be amended or extended no more than twice, provided that the relevant guarantees are provided and that, upon the conclusion of the addenda to the connection contracts, tangible progress is demonstrated: proof of payment of at least 25% of the value of the purchased equipment or proof that at least 10% of the work on the user facilities has been completed.

• Clarifying the applicability of deadlines for permits

The user is required to obtain the operating permit for the electricity generation capacity, including for cogeneration and for storage facilities at the point of generation/consumption, within no more than 12 months from the conclusion of the connection contract and 18 months from the issuance of the Technical Connection Notice. The Regulation must clarify whether this provision also applies to Technical Connection Notices and connection contracts issued prior to the entry into force of this Order.

• Regulations governing the performance of reinforcement work by users

The regulation clearly sets forth the conditions under which users may, at their own expense and upon request, carry out reinforcement work already included in the Network Operator’s Development Plan.

• Providing a guarantee at the time of the capacity request

Users must provide a financial guarantee, expressed in MW, as early as the first stage—that of submitting the application for capacity allocation. This measure is essential for discouraging speculative projects and ensuring realistic estimates of grid development needs.

Transelectrica believes that updating and harmonizing the regulatory framework is a priority for ensuring the uniform and non-discriminatory application of connection rules. At the same time, these measures help to streamline investment and encourage well-designed, mature projects that can be efficiently integrated into the grid.

Experience gained in applying current regulations highlights the need to harmonize secondary legislation with the provisions of primary legislation, as well as to introduce clear mechanisms to encourage compliance with deadlines for implementing new production capacities.

Over the past five years, through a productive collaboration with ANRE, Transelectrica has consistently submitted proposals and comments on this matter, with the aim of developing a regulatory framework that supports sustainable investments and strengthens the security of the National Power System.