Half of construction costs to be covered also for high capacity connections

(11.04.2024.)

In order to promote new investments, including for energy-intensive projects, the distribution system operator will cover 50% of the construction costs also for high capacity connections. This is provided for in the amendments to the Energy Law adopted by the Saeima on Thursday, 11 April, as urgent in the second reading.

Previously the principle that costs for construction of grid connections be divided 50/50 between the user and the system operator was only applicable to low capacity connections to the 0.4 kilowatt grid with an input protection appliance current not exceeding 100 A. The amendments provide that the 50/50 split of construction costs will henceforth also apply to connections to the 6-20 kilovolt grid and to connections to the 0.4 kilovolt grid with an input protection appliance current over 100 A.

The Economic, Agricultural, Environmental and Regional Policy Committee of the Saeima, which was responsible for the amendments, previously decided that this would ensure equal support opportunities for small households, as well as high-capacity users. The amendments will reduce the cost burden related to establishing new high-capacity grid connections. This is especially important when starting and expanding business operations.

The amendments also provide an option for the electricity distribution system operator to apply distribution system services tariff discounts in cases when new high-capacity connections are established. The Climate and Energy Ministry has noted that this will promote high consumption of electricity both within the electricity distribution system, as well as the Latvian electric grid as a whole.

The annotation to the amendments states that the proposed solution for splitting the construction costs of setting up new grid connections will promote electrification and reduce the use of other, less efficient and environmentally less friendly energy sources.

The amendments will come into effect as of 1 May.

 

Saeima Press Service

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