Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 76
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5.2 Consequences of a project delay
If the developer does not meet the deadline
in the concession agreement for connecting
to the grid (tender process OWF), it may
incur a significant amount of liquidated damages. The liability system is usually set out
in a concession agreement for the specific
project.
5.3 Examples of actual and future tariffs
As described above, premiums for the OWFs
which have been tendered are settled in
each tender. Therefore, the premiums vary.
Examples of premiums from previous tenders are set out in the table above.
5.4 Grid and grid connection
(a) Planning and construction of the grid
connection system
Energinet is responsible for constructing
and operating the GCS from the onshore
substation to the overall transmission
grid, while the offshore substation and
export cables are within the scope of the
tender.
(b) Responsibility for the cost of the grid
connection system
The developer must cover Energinet’s
costs for the construction of the onshore GCS.
Denmark
(c) Consequences of delays and disruptions of the grid connection system
If Energinet does not meet the deadlines
and comply with the conditions for the
grid connection of the OWF according
to the terms of the tendering procedure,
Energinet will be objectively liable for
damages and for any consequential loss
suffered by the developer.
(d) Onshore grid congestions, prioritisation of renewable energy resources and
compensation mechanisms
Energinet may order a downward regulation of the electricity production from
OWFs for the sake of security of supply
or for economically optimal utilisation of
the system if this is necessary because
of:
(i) faults or maintenance work on the
on the parts of the landing facilities
owned by Energinet,
(ii) automatic reduction or disconnection of production,
(iii) operating situations threaten the
operational reliability of the connected GCS,
(iv) capacity limitations in the overall
GCS,
Compensation for losses incurred by
Energinet‘s orders on downward regulation is regulated by Energinet Market
Regulation E1 on compensation to OWFs
in case of orders on downward regulation.
