Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 186
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5. GRID AND
GRID CONNECTION
5.1 Planning and construction of
the grid connection system
As a general starting point, the Norwegian
government has stated that that the offshore wind developers must plan, construct,
own and operate the grid connection from
the production facility to the mainland. This
includes covering the costs for both the grid
connection itself and any grid contribution
requirements for infrastructure reinforcements in the onshore grid. Hence, grid
investment costs cannot be expected to be
socialized through the grid tariff regime. However, the subsidy regime through the CFD
scheme is expected to also cover a portion
of the grid costs.
The first phase of Sørlige Nordsjø II will be
connected to the onshore grid through a
radial HVDC connection, which will be financed, constructed, and operated by the wind
farm developer.
For Utsira Nord, it is still unclear whether the
offshore wind developers need to construct
and operate separate radial connections per
project, or will be required to develop a joint,
coordinated grid solution.
Statnett, the Norwegian TSO, is set to manage construction and operation of the grid
connection system from the onshore substation and through the transmission grid.
Should the offshore grid connections later
be adapted to connect additional offshore
energy producers or consumers, it may need
Norway
to be reclassified from a customer-specific
installation to a part of the transmission
network. In such case, the installations will
need to be transferred to Statnett in line
with Norwegian and EU/EEA unbundling
requirements.
There is a general expectation that future
offshore wind projects in Norway may
need to be developed using a hybrid grid
connection solution, connected to both
the Norwegian grid and the grid of another
northern-European country. For instance,
this is potentially the case for the second
phase of Sørlige Nordsjø II. The regulatory
framework for such hybrid grid connections
is still under development, including the
key question of whether the wind farm may
receive congestion income from the hybrid
interconnector. Under current Norwegian
and EU/EEA legislation, this is generally not
permitted.
5.2 Consequences of delays
and disruptions of
the grid connection system
Statnett manages constructing and operating the grid connection system from the
onshore substation to the overall transmission grid. If Statnett should not meet the
deadlines and comply with conditions for
grid connection of the wind farm according
to the terms of the Norwegian Energy Act,
Statnett may be liable for damages suffered
by the developer.
(a) Onshore grid congestions, prioritization of renewable energy resources and
compensation mechanisms
