How grid operators clarify increased capacity with Statnett

The connection of new facilities or an increased load in existing customer facilities at lower voltage levels also affects the transmission grid. It puts a load on the connection points (substations) between the transmission grid and the underlying grid, in addition to the distribution system. Furthermore, connections will change the flow pattern and the short-circuit performance. They also affect protective equipment/settings and the voltage conditions in the transmission grid.

Energy regulations require grid operators that are directly connected to the transmission grid to clarify that there is available capacity in the transmission grid before connecting capacity to customers in their own grid. The grid operator must confirm connection of power consumption with Statnett if the planned agreed capacity is ≥ 5 MW and/or the planned annual energy consumption ≥ 20 GWh. This is to determine whether the increased exchange at the connection point is operationally viable. Other power requirements and location of the customer must also be reasonably clarified prior to submitting the capacity request. For energy production, new connections ≥ 1 MW must be confirmed with Statnett.

For the processing of connection cases, the country is divided into areas that are managed by designated contact persons. You can contact us for guidance and follow-up. At the bottom of this page, you can find contact information for the different parts of the country.

Grid operators that are directly connected to the transmission grid must use the following process to clarify their current and future capacity needs with Statnett.

Clarification of capacity for growth in normal consumption

Through the Regional Power System Assessment (RKSU) process and cooperation on area plans, grid operators share their updated forecasts for normal growth in consumption, which will increase the load on the connection point with Statnett. Based on these forecasts, the grid operator and Statnett assess in consultation:

how much capacity (power volume in MW) must be reserved for normal consumption at each connection point
coincidence factor
expectations for how growth in consumption will be distributed between different connection points and limitations in the regional grid

Statnett plans development of the transmission grid based on the grid operator’ forecasts, and we are planning processes to ensure the best possible accuracy to meet consumption growth in a timely manner. As a general rule, capacity is reserved for growth for four years, with a new assessment every other year, coordinated with the Regional Power System Assessment (RKSU) process. If there are limitations in the transmission grid, Statnett will reserve the expected volume within the time horizon until the necessary grid measures are in place.

Capacity that has been set aside for growth in normal consumption in the transmission grid cannot be reserved for other types of consumption. Based on the actual growth in normal consumption, grid operators and Statnett can, in consultation, consider ongoing adjustments to how much capacity to reserve for this. This will contribute to better utilisation of the grid, but requires the best possible information about actual growth in normal consumption.

Normal consumption, less than 5 MW agreed capacity

Connections of less than 5 MW (and less than 20 GWh/year) do not need to be submitted as a connection case as they are included in the forecast via the RKSU process.

Request for increased capacity for individual customers with planned agreed power ≥ 5 MW and/or ≥ 20 GWh

Increased capacity requirements for the grid operator’s new or existing consumption customers must be confirmed with Statnett where the planned agreed power is ≥ 5 MW and/or the planned annual energy consumption ≥ 20 GWh. For energy production, connections ≥ 1 MW must be confirmed with Statnett. The connection manager will work with grid operators in assessing which cases must be clarified with us.

Enquiries to Statnett regarding increased capacity for connection of new consumption or production must be reported in the form (see the link at the bottom of the page) and sent to tilknytning@statnett.no, with a copy to the connection manager for the relevant area. You can find the connection manager for your area at the bottom of the page.

The grid operator must decide whether the cases require guidance or whether the cases are specific requests (reasonably clarified capacity needs and location, as well as sufficiently mature for an operational viability assessment) for increased transmission capacity. This must be noted in the form.

When the grid operator considers its customer’s need for connection or increased capacity to be sufficiently mature for an operational viability assessment, the grid operator must ask Statnett whether there is available capacity in the transmission grid. In some cases, it may be appropriate for the grid operator to have conducted its operational viability assessments in advance, while in other cases it may be sensible to conduct the assessments at different grid levels in cooperation or in parallel. We will try to resolve this in the most efficient way possible, in dialogue with the grid operator associated with each individual case or grid area.

When submitting a request, the grid operator must, among other things, inform Statnett about the customer’s power needs, including load profile and any escalation plan, as well as the grid operator’s assessments with regard to coincidence factor.

Statnett assesses capacity in the transmission grid

When the grid operator requests increased capacity for projects or needs that are sufficiently mature, Statnett makes an assessment of whether there is available capacity in the transmission grid and whether the increased power exchange is operationally viable.

Depending on the complexity of the case and available documentation (reported information from the grid operator, Statnett’s area plans, previous analyses and knowledge of the grid area), we will carry out an operational viability assessment as soon as possible. If necessary, the assessment will be conducted in cooperation with the grid operator.

If the customer’s power needs and location are not reasonably clarified, for example if the customer is considering several different locations, Statnett may charge a fee to clarify whether it is operationally viable to comply with the customer’s request, cf. Section 17-5 of the Norwegian Regulations governing financial and technical reporting, income caps for network operations and transmission tariffs. The payment is determined on the basis of actual expenses incurred.

Statnett’s response to an operational viability assessment does not create any rights to any available capacity in the current or planned grid. Statnett has not reserved the requested capacity. In addition, the date that the request for capacity was submitted to Statnett does not determine the customer’s place in the “queue” for reserving capacity.

Statnett’s response to whether a connection is operationally viable is not binding on Statnett. New information or assessments may cause us to change our conclusions at a later stage.

Connection with conditions that stipulate terms for disconnection or limitations in consumption or production may be considered

If there is no available capacity in the transmission grid on ordinary terms, we may consider providing a connection with conditions that stipulate terms for disconnection or limitations in consumption or production, if this is operationally viable and desirable for the end customer, cf. Section 3-2 or 3-3 of the Norwegian Regulations concerning grid operations and the power market (NEM). Such terms are voluntary for all parties and facilitate faster connection to the grid. In accordance with the regulations, customers are not entitled to any form of compensation when entering into such an agreement or when disconnecting or limiting consumption or production.

The grid operator, Statnett and the customer will make a joint assessment of connections with such terms. In cases where the conditions for disconnection of consumption are based on limited average capacity in the transmission grid, the customer must have a relatively large consumption that can be disconnected if necessary – in the order of 50 MW or more – in order for the customer to be connected with conditions. Furthermore, it must be possible to establish automated solutions for disconnection. In addition, equipment must be installed at the customer’s premises, in accordance with Statnett’s specifications, with a safety function that enables disconnection as agreed.

All connections with conditions, in the regional and transmission grid, must be clarified with the system operator. This also applies if the conditions are only between the grid operator and the end customer.

Grid operators can order capacity for sufficiently mature customers

As soon as the grid operator considers its customer’s needs to be sufficiently mature to reserve capacity, the grid operator can submit an order for capacity to Statnett.

Orders for capacity can be submitted as soon as the grid operator considers its customer to be sufficiently mature to reserve capacity. This means, for example, that orders can be submitted even if Statnett has not started or completed its operational viability assessment. The form must then be marked both operational viability request and order.

If multiple grid operators and/or Statnett’s direct customers order the same capacity and all parties meet the reservation requirements, Statnett will distribute the capacity in the transmission grid based on the order date. The date the order was submitted to Statnett will be used, provided that the conditions for reservation were met at the time the order was placed. It is therefore crucial for grid operators to order capacity on behalf of their customers as soon as possible when a customer is considered to be sufficiently mature. Here, it is important for the grid operator and Statnett to have a constructive and regular dialogue on connection cases to ensure transparency and equal treatment. The ongoing digitalisation work in the industry to improve the flow of information between grid operators during connection processes will make this easier to manage in the long term.

Grid operators are responsible for assessing the maturity of their own customers’ need for capacity. When placing an order, the grid operator must summarise its maturity assessment and the results of the assessment, including a description of the grid operator’s criteria for assessing maturity.

For Statnett’s direct customers, we use the following criteria (see the link at the bottom of the page) to assess whether a request is sufficiently mature to reserve capacity. As a grid operator, you are welcome to use this as a template or as a basis for your own assessments. The industry is working to develop common principles and criteria for reserving capacity. Common principles and criteria will help streamline assessments and ensure equal treatment and transparency across grid operators.

Statnett may reserve capacity for needs where it is highly likely that it will be used

Based on the grid operator’s order, including the grid operator’s maturity assessment, Statnett may reserve available capacity in the transmission grid. For individual cases over 100 MW, Statnett and the grid operator must jointly assess the maturity of the project.

The first grid operator or direct customer to submit an order that meets the reservation requirements will have reserved capacity – provided that there is available capacity in the current or planned grid. If there is a greater demand for grid capacity than what is available in the current or planned grid, the “queue” will be determined based on the submission date for orders that meet the maturity requirements for reservation.

The capacity is not reserved until Statnett has sent the grid operator a letter confirming the reserved power volume, with associated conditions for maintaining the reservation. Such conditions will, among other things, be linked to the expected progress of the grid company’s customer in order to utilise capacity. It is the grid operator’s responsibility to ensure that Statnett receives updated information if there are any changes in the grid operator’s queue that should be taken into account when assessing capacity in the transmission grid.

If the project is delayed to the extent that the customer will not manage to be ready for operational implementation before the reservation expires, the grid operator must apply to extend the validity of the reservation. If it is likely that operational implementation will be significantly delayed in relation to the work schedule, Statnett may reject the application to extend the reservation.

In the event of significant deviations from the work schedule, Statnett is entitled to cancel all or part of the reserved grid capacity. Until construction starts, the threshold for what is considered a significant deviation will be low. After construction starts, a breach of the customer’s work schedule such as to entail a likely two-year delay of operational implementation will always constitute a significant deviation from the work schedule.

It is the grid operator’s responsibility to set deadlines for its customers until operational start-up, and further for utilisation of reserved capacity.

Grid operators must follow up on their own customers prior to connection and report to Statnett on progress and connection. In anticipation of digital tools that will simplify registration and follow-up across grid operators, we request annual reporting. This can often be done collectively for the grid operator’s cases in dialogue with the connection manager.

If the grid operator cancels a reservation for its customers, the grid operator must inform Statnett of this so that the grid operator’s corresponding reserved capacity in the transmission grid can also be cancelled by Statnett. This is necessary to prevent market barriers and to ensure efficient utilisation and distribution of available capacity in the power system.

Ongoing work on digitalisation in the industry will create IT solutions that will make it easier for grid operators to control which needs are realised and which are not.

Statnett will assess, design and build capacity where there is no capacity in the current grid

Assessment of measures prior to a decision on project start-up (DG0) in Statnett

If there is no available capacity to connect the capacity need described in the enquiry to the existing grid and no available capacity after the completion of grid reinforcements that are already in progress, we will assess further measures that could be implemented in the transmission grid to increase capacity. If the grid operator would like an assessment related to connecting a customer, the grid operator must submit the form, including the grid operator’s maturity assessment of the customer (see the link at the bottom of the page), to tilknytning@statnett.no, with a copy to the connection manager for the relevant area.

As a general rule, all major needs for increased capacity will be coordinated and assessed in the relevant area plan where we examine all connection enquiries as a whole. In the area plan, we will set capacity limits for larger sections and areas, and define a target grid with various steps that facilitate the connection of expected developments in production and consumption. In some cases, additional assessments will be necessary to find measures that provide sufficient capacity to connect the customer’s project. When we carry out assessments of measures in the area plan, the costs of the assessment will not be covered by customers, nor will we enter into an agreement with customers.

In cases where we conduct assessments that are linked to individual customer enquiries, the customer must cover a proportionate share of the costs. The costs will be based on cost-price, cf. Section 17-5 of the Norwegian Regulations governing financial and technical reporting, income caps for network operations and transmission tariffs. In some cases, it may be appropriate to regulate the payment of costs related to studies and assessments in agreements (“Assessment agreement”) with customers directly or indirectly through the grid operator. Statnett prefers to enter into agreements with the grid operator and for the grid operator to be a contracting party to the end customer.

If the customer meets the relevant maturity requirements for Statnett to conduct assessments and undertakes to cover all or part of the assessment costs until the measure has been identified, the customer will be given priority for capacity in the further connection process and the opportunity to enter into a project development agreement (see below). This means that if the customer has achieved the maturity requirements to reserve and be able to enter into such an agreement by DG0 (Statnett’s decision gate for project start-up), the customer will be given priority regardless of other customers. In order to maintain priority throughout the assessment period, the customer must be able to show progress in their own project.

Project development of measures after a decision on project start-up (DG0) in Statnett

After we have identified the measure that will provide increased capacity to be able to connect to the customer, we will start up a project to execute the construction (decision gate DG0 in Statnett’s project model). If the grid operator wishes Statnett to start working on project development of the measure, the grid operator must submit the form, including the grid operator’s maturity assessment of the customer (see the link at the bottom of the page), to tilknytning@statnett.no, with a copy to the connection manager for the relevant area.

For customer-driven projects, customers must cover a proportionate share of the project development costs (costs of studies and assessments) up to construction start (DG3 in Statnett’s project model), cf. Section 17-5 of the Norwegian Regulations governing financial and technical reporting, income caps for network operations and transmission tariffs.

From the start of construction, payment for the costs of studies and assessments will be replaced by payment of investment contributions, cf. Section 16-1 of the Norwegian Regulations governing financial and technical reporting, income caps for network operations and transmission tariffs.

In some cases, it may be appropriate to regulate the payment of costs related to project development and investment contributions in agreements with customers directly or indirectly through the grid operator. Statnett prefers to enter into agreements with the grid operator. The grid operator is a contracting party to the end customer and collects costs for project development and investment contributions in the transmission grid together with corresponding costs in its own grid.

If the customer meets relevant maturity requirements for reserving capacity and commits to covering all or part of the project development costs after project start-up (DG0) and up to construction start (DG3), and the customer enters into an agreement on investment contributions, the customer will be able to reserve part of the capacity provided by the measure. To maintain the reservation throughout the project development phase, the customer must show progress in its own project, cf. the reservation requirements described above.

The table below shows examples of the time required to implement measures after they have been identified through our work with the area plan. Lead times will vary from case to case.

	Design and implement measures*
Increased transformer capacity	4–6 years
New substation	5–10 years
New power line	7–12 years

* Median values from the start of the project until the facilities are in operation, including time to secure statutory permits. Lead times for new grid facilities will vary between projects of the same category. The main reasons for these variations are scope of work, need for disconnections and time required for licensing process. Interfaces to other projects, access to materials, geographic location, topography and seasonal work are also factors that often affect lead times.

Investment contributions when constructing measures

The grid operator will determine and collect investment contributions from the customer to cover all or part of the cost basis for the investments that will be triggered when the customer is connected to the grid or receives increased capacity or improved quality, cf. Section 16 of the Norwegian Regulations governing financial and technical reporting, income caps for network operations and transmission tariffs. The grid operator will also determine and collect investment contributions from customers that will be connected to or receive increased capacity in grid facilities financed by investment contributions. The obligation applies for ten years from the date that the customer who triggered the investment was connected or received increased capacity. If the customer does not wish to pay investment contributions where applicable, the customer will not be connected or be able to reserve capacity.

Upon start-up of the development project (DG0), Statnett will provide a non-binding estimate of the cost of investment contributions, which are often specified as intervals. The estimate is updated on an ongoing basis right up to construction start (DG3) and will have gradually reduced uncertainty. When Statnett has a sufficiently mature cost basis to enter into an agreement on investment contributions, the estimate is referred to as an investment contributions estimate. This investment contributions estimate forms the basis for the agreement and the recalculation.

We will recalculate the estimate in line with regulations once Statnett completes the project (DG5). Cost overruns up to 15 per cent above the estimate must be covered by the customer. Cost reductions compared to the estimate will be credited to the customer in full. If the customer requests changes that will affect the project after the estimate has been given, the 15 per cent limit lapses. The criteria for recalculation are set out in regulations.