Offshore Wind Worldwide 2022 edition - Flipbook - Page 143
Offshore Wind Worldwide 2022
IV. Grid and grid connection
Planning and construction is currently the
responsibility of the utilities.
A. R
esponsibility for the cost of the
grid connection system
In addition to the utility companies,
business operators will incur a certain
amount of construction costs to connect
their power generation facilities to the
onshore grid. The exact amount will vary
depending on the utility in question.
B.Consequences of delays and
disruptions of the grid connection
system
As a general rule, there is typically no
protection for the wind farm owner.
However, this will be decided on a case-bycase basis as it ultimately depends on the
terms of the grid connection agreement.
C.Onshore grid congestions,
prioritisation of renewable energy
resources and compensation
mechanisms
Under the Enforcement Regulations for the
FIT Act (METI Ordinance No. 46, 2012, as
amended) (the Enforcement Regulations), if
the amount of electricity provided is
expected to exceed demand, and
notwithstanding that the Purchaser may
have taken remedial steps set out in Article
14.1(8) i of the Enforcement Regulations
(including curtailment of its own power
generation facilities or frequency
adjustments), the Seller must comply with
the curtailment instructions from the
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Purchaser as set out in Article 14.1(8) i. The
curtailment instructions must be limited to
720 hours of curtailment each fiscal year
(pro-rated). The Seller cannot seek
compensation for any damages resulting
from curtailment provided that the
Purchaser has (without delay) informed the
Seller in writing of the justifications and
mitigating steps after issuing the
instructions.
The Purchaser may also curtail the output of
the power facility if items (1) (natural
disaster causes) or (2) (human safety
reasons) under Article 14.1 (8) ho of the
Enforcement Regulations apply to the
Purchaser and the cause or reason is not
attributable to the Purchaser. The Seller
cannot seek compensation from the
Purchaser for damages resulting from the
curtailment if the Purchaser has shown
reasonable cause for the curtailment.
The Seller must curtail output at the power
facility following the instructions of the
Purchaser if item (1) or (2) under Article 14.1
(8) he of the Enforcement Regulations
applies to the Seller. If the Purchaser so
instructs the Seller and the Purchaser has
shown reasonable cause for the curtailment,
the Seller cannot seek compensation from
the Purchaser for damages resulting from
the curtailment
Other than in the above scenarios, the Seller
can seek compensation from the Purchaser
for damages incurred as a result of
curtailment by the Purchaser or curtailment
by the Seller at the Purchaser’s instruction.