Connections to the transmission grid

As an electricity transmission system operator (TSO), AS Augstsprieguma tīkls has a permanent obligation, subject to the scope and term of its licence, to ensure the network members have the necessary connections to the transmission system or the necessary changes to the permitted capacity of the existing connection consistently with the regulations issued by the Public Utility Regulatory Commission (the Regulators).

The regulations issued by the Regulator:

The users of the electricity transmission system are required to comply with Commission Regulation (EU) No. 2016/1388 of 17 August 2016 on establishing a network code on demand connection.

Electricity producers must comply with the requirements of the Commission Regulation (EU) of 14 April 2016 establishing a network code on requirements for the grid connection of generators.

Electricity producers must obtain a permit for the introduction of a new electricity production facility or an increase in the electricity production capacity at the Construction State Control Office, in accordance with the Cabinet of Ministers' Regulation No. 821 "Regulations on permits for the introduction of a new electricity production facility or an increase in the electricity production capacity"

Electricity producers and electricity users must comply with the requirements of the Network Code for the Electricity Sector

Under the procedure prescribed by the Cabinet, the end-user has the right to submit an application for special connection to the transmission system or for increasing the connection capacity of the existing transmission system if after the installation of the connection the user’s electricity consumption will increase by at least 100,000 megawatt hours per year or with a nominal capacity of the connection of at least 50 megawatts. Cabinet Regulation No. 476 “Regulation on Special Connection to the Electricity Transmission System”

If you are interested in connection possibilities to the electricity transmission system, the Electricity producers and the Users are kindly requested to get acquainted with the available capacities on the map available below.

IMPORTANT INFORMATION! As of July 1, 2022, the capacity reserved by producers in the transmission network exceeds 3500 MW and in the distribution network exceeds 926 MW. Latvia's load in winter can reach around 1400 MW. After synchronization with the Central European energy system (planned in 2025), it will be possible to ensure the safe operation of the energy system if the total power flow of the Baltic States with the Central European energy system does not exceed 2000 MW.
If in the next few years the projects for connecting new production capacities will be implemented in the requested volume and if technical requirements for connecting new production capacities to the transmission network are continued to be issued, the possibility is increasing that in order to ensure the dynamic stability and security of the network, the TSO will be forced to limit the operation of power plants by reducing the power issued in the transmission network. We invite RES developers to take this fact into account when planning their projects.

Steps to install connections

The change of the technical parameters of the connection coincides with the process of installation of the connection.

+ Step 1: The system’s User/Producer application

Prior to the preparation of the application, the User or the Producer must evaluate the place of connection, considering the budgeted capacity in the long term as well as electricity costs, considering the connection tariff (rate). The Users or Producers with a capacity of up to 10MVA mainly choose to install connections to the electricity distribution system, whereas a higher capacity connection can be budgeted for the electricity transmission system.

Prior to the preparation of the application we encourage you to discuss the possible connection solutions. Please email: [email protected] regarding your preferred timing of the meeting with the company's specialists concerning the installation of the connection

The application with documents must be submitted in electronic format by sending to the e-mail address: [email protected]. The application and documents must be signed with a secure electronic signature.

Users:

Producers:

+ Step 2: AST’s technical requirements

The technical specifications shall be issued to Users and Producers within 60 days of the date of receipt of their application. The system operator sends a letter to the electricity Producer with the Technical Requirements and fee calculation for the reserved capacity of the system.

If the development of the technical specifications is complex and takes longer to prepare it or if the user has failed to provide all the necessary information to the system operator, the system operator shall notify the system User/Producer in writing about the deadline for issuing the technical specifications.

Indicative costs of construction of the connection:

No.

Anticipated works

Voltage (kV)

Costs, millions of EUR

1

Construction of a new double busbar scheme substation (5 bays)

330

7.8

2

Construction of a new connection in an existing double busbar scheme substation (1 bay)

330

1.5

3

Construction of overhead power line 1km (single-circuit version)

330

0.4

4

Construction of overhead power line 1km (double-circuit version)

330

0.6

5

Cable line construction 1km

330

1.6

6

Construction of a new H-type substation (4 bays)

110

3.2

7

Construction of a new H-type substation (3 bays)

110

2.4

8

Construction of a new double busbar scheme substation (6 bays)

110

4.8

9

Conversion of an existing H-type substation to a double busbar scheme substation (6 bays)

110

4.8

10

Expansion of an existing H-type or double busbar scheme substation (additional 1 bay)

110

0.8

11

Construction of a new simplified substation (1 bay, TSO building-container)

110

0.8

12

Construction of overhead power line 1km (single-circuit version)

110

0.3

13

Construction of overhead power line 1km (double-circuit version)

110

0.4

14

Cable line construction 1km

110

1.4

The table shows indicative costs and is subject to change. Exact connection costs are determined during procurement procedures.

+ Step 2.1: Producer fee for reserving system capacity

In accordance with Section 97 of the Electricity Market Law, Decision No. 1/5 of the Public Utilities Commission of 14 April 2022 "Regulations Regarding System Connection for Electricity Producers" (hereinafter – Regulatory Provisions) and Decision No. 1 of the Public Utilities Commission of 12 January 2023 "On Fee per Unit of Power Reservation in the Electricity Sector", the electricity producer shall provide the system operator with the fee for reservation of system capacity within 60 days from receipt of the technical requirements for the connection.

The fee per unit of capacity reservation shall be EUR 21.63 per kilowatt, excluding VAT, but not more than for 100 MW, i.e. not more than EUR 2 163 000.00 excluding VAT.

The producer shall provide the system capacity reservation fee in one of the following ways at the producer's choice:

  • by paying into the system operator's account a deposit payment equal to the system capacity reservation fee set by the system operator;
  • by providing the system operator with a performance guarantee from a financial service provider established in a Member State of the European Union or the European Economic Area, the provisions of which have been agreed on with the system operator.
Advance payment of the capacity reservation fee paid into the system operator's account

According to the invoice issued by Augstsprieguma tīkls AS, the capacity reservation fee including VAT shall be credited to the current account of Augstsprieguma tīkls AS as per choice:

  • LV41RIKO0000084269087, Luminor Bank AS Latvian branch, Skanstes iela 12, Riga, LV-1013, SWIFT: RIKOLV2X
  • LV22HABA0551 0268 21770, Swedbank AS, Balasta dambis 15, Riga, LV-1048, SWIFT: HABALV22

The purpose of the payment shall be the Technical Requirements number and the date of issue.

The deposit payment shall be returned in accordance with the procedure set out in the Regulatory Provisions.

Conditions for the performance guarantee
  • In the amount of the system operator's fee for reservation of system capacity, including VAT;
  • Indicating the Technical Requirements number and the date of their issue;
  • Financial service provider established in a Member State of the European Union or the European Economic Area;
  • Financial service provider (bank or insurer) with a long-term credit rating of at least Baa1 by Moody's or BBB+ by Standard & Poor's or BBB+ by Fitch Ratings for long-term foreign currency borrowings;
  • The text of the performance guarantee agreed with the System Operator, including the guarantee:
    • complies with international conditions for the issuance of guarantees: ICC Uniform Rules for Demand Guarantees (URDG 758)* and takes precedence over the internal guarantee terms set by the insurer.
  • The guarantee shall be cancelled in accordance with the procedure laid down in the Regulatory Provisions;
  • Key information to be included in the text of the guarantee:
    • type of guarantee, number;
    • the applicant, the beneficiary, the guarantor;
    • reference to the concluded contract/order, description of the product/service;
    • maximum amount and currency of the guarantee. conditions for a reduction of the amount, if necessary;
    • expiry date of the guarantee;
    • conditions for the payment claim. How the payment claim is to be submitted – paper/electronically signed or via SWIFT;
    • language of the documents. The document issued by the applicant or beneficiary must be in the language of the guarantee; the document issued by the third party may be in any language, unless otherwise specified in the guarantee;
    • payment of commissions;
    • guarantee provisions/regulations and jurisdiction.
  • Guarantee is irrevocable;
  • The issuing bank is obliged to pay upon the first written request of the beneficiary. The beneficiary is not required to apply to the applicant before making a claim to the bank;
  • The issuing bank must pay the guarantee without objection if the payment claim of the beneficiary is in accordance with the provisions of the guarantee.

*The ICC Uniform Rules for Demand Guarantees (URDG 758)

+ Step 3: Signing the agreement

The agreement is a document entered into between the TSO and the User or the Producer, which describes the responsibilities and accountability of the TSO, the User or the Producer; specifies who will arrange the procurement procedure, initiate construction, what the payment terms are, as well as describes many other connection related matters to be mutually resolved (such as the land development right, equipment specifications, etc.).

The agreement can be found here (in Latvian).

The agreement (with a separate design process) can be found here (in Latvian).

The agreement (TSO will arrange the procurement procedure) can be found here (in Latvian).

Please refer to the full flow chart below and step 10 of the parallel process for real estate issues for the User or the Producer.

When planning the selection of a construction merchant and equipment supplier for the installation of a connection (or modification of technical parameters), it is necessary to observe the general requirements set by AS Augstsprieguma tīkls for the construction merchants and equipment suppliers. The general requirements may be supplemented by other requirements, considering the scope and specifics of a particular project.

Construction merchants and equipment suppliers (if the equipment supplier is not mentioned in the requirements listed below, the requirements do not apply to the equipment supplier) shall meet the following general requirements:

  1. The construction merchant is registered in the Register of Construction Merchants;
  2. An ISO 9001 or equivalent certificate or other evidence of the equivalent quality assurance measures has been issued to the construction merchant and equipment supplier;
  3. An attested copy of the Eco-Management and Audit Scheme (EMAS) or equivalent certificate, or ISO 14001 or equivalent certificate submitted, or other evidence submitted by the Candidate regarding the implementation of equivalent quality management measures or compliance of the operation with the environmental protection requirements has been issued to the construction merchant and equipment supplier;
  4. Conditions for the exclusion specified in Parts 1 and 2 of Section 48 of the Law on the Procurement of Public Service Providers do not apply to the construction merchant and equipment supplier;
  5. During the last 2 (two) reporting years, the annual net turnover of the construction merchant and equipment supplier is not less than 80% of the amount of the planned project (the sum of the total costs of connection installation or modification of technical parameters);
  6. During the last 5 (five) years, the construction merchant and equipment supplier have had experience in the construction or reconstruction of 110 kV and/or higher voltage energy supply objects, as well as in the supply of goods;
  7. The construction merchant shall be able to certify that it will provide a sufficient number of suitably qualified personnel for the performance of the work (certified designers and construction workers, examiners, author supervisors, etc.);
  8. The remuneration of the personnel of the construction merchant shall correspond to at least 80 % of the level of the average hourly tariff rate published by the SRS in the specific group of professions;
  9. The construction merchant and the equipment supplier are not included in any sanction list binding on Latvia.
+ Step 4: Development of procurement documentation

In accordance with the concluded agreement, the TSO develops procurement documentation for procurement. For the TSO part, the TSO prepares the design task for the design work, the technical specifications for the delivery of the equipment, the technical task for the contractor and other documents (regulations, contracts, etc.).

+ Step 5: Implementation of the procurement procedure

In accordance with the concluded agreement, all necessary procurement procedures are performed.

+ Step 6: Connection agreement

The connection contract shall be concluded when all procurement procedures have been completed and all costs are known.

After concluding the connection agreement, the TSO concludes agreements with the winners of the procurement procedure (for the part of the TSO), regardless of who has performed the procurement procedure.

+ Step 7. Technical designing, supplying of equipment and construction works

In accordance with the concluded agreements, the design and construction of the connection, as well as the delivery of equipment are performed.

After completion of the works, there are two operational acceptance procedures:

  1. AS "Augstsprieguma tīkls" accepts part of the new connection to the  AS "Augstsprieguma tīkls". In order to do this, a load test must be carried out and therefore the manufacturer must be built and connected to the power generation units of at least 10% of the nominal capacity of the intended power plant or not less than 6MW.
  2. The power plant operational acceptance procedures must be done in accordance with the procedures available in the description of the step 9.

 

+ Step 8: System service agreement

Users:

A system service agreement is concluded before the inspections and tests are performed. The tests and inspections shall be performed in accordance with Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a Network Code on Demand Connection and the Network Code.

Producers:

A system service agreement is concluded before the inspections and tests are performed. The tests and inspections shall be performed in accordance with European Commission Regulation 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators and the Network Code.

The agreement can be found here (in Latvian).

+ Step 9: Commissioning procedure

To establish the procedure for the operation notification procedure for the type D electricity generation modules, demand installations and distribution installations and to make it publicly available in accordance with the requirements of Regulation 2016/631 and Regulation 2016/1388.

Procedures for the Operation notification and Procedures for performing inspections

 

+ Step 10: Real estate issues

If the installation of the connection is linked to the construction of a  new JSC "Augstsprieguma tīkls" substation or a part of it, then the installer of the connection shall provide the plot of land necessary for the substation or its part (hereinafter - Land):

  • Prepare and coordinate with the AST substation unit or part thereof with borders and planned electrical equipment position;
  • Prepared and registered with the State Land Service for the Border Plan or Scheme of the Earth Unit;
  • must be concluded by AST building law and registered in the Land Register;
  • Timely preparation and coordination of the land unit of the land unit or the scheme with AST, the preparation of the land management project for the distribution of the land property and the separation of the AST substation for separation of the land unit;
  • Prepare land boundary plans for land units provided for in the land use project;
  • must be concluded by AST land purchase agreement and registered in the Land Register;
  • Prepare a road servitude scheme for the driveway to the AST substation;
  • a servitude agreement with AST and registered in the Land Register.

The planned substation and power line location provide the maximum height of the wind power plant (including the length of the rotor wings) plus 10 meters.

We advise to address issues related to Land as soon as the first agreement has been singed (Step 3).

The land acquisition agreement or the building right agreement must be concluded before the conclusion of the Connection Agreement (step 6).

The registration of property rights in the name of JSC "Augstsprieguma tīkls" must be finalised before the conclusion of the System Service Agreement (Step 8).