On Friday, 11 October 2024, the Circular 1/2024, of 27 September, of the National Commission for Markets and Competition (the “CNMC“) was published in the Official State Gazette (BOE), establishing the methodology and conditions for access and connection to the transmission and distribution grids of energy demand facilities (the “Circular 1/2024“). It will enter into force three months after its publication.
Circular 1/2024 is applicable to the parties involved in the application for and granting of access and connection permits associated with energy demand (applicants, grantors and processors) and to the owners of closed electricity distribution networks, with respect to both initial applications and applications for modification or increase in power.
A new feature is that, in the specific study to determine the access capacity of a demand facility at a connection point that determines the maximum active power available, a distinction will be made between firm or ordinary access capacity and flexible access capacity, depending on whether or not the maximum power can be served with guaranteed supply during all hours of the year (article 4). Both can be applied for simultaneously, with flexible access capacity being voluntary for the applicant.
In order to grant flexible access capacity, the capacity study has to conclude that the installation is expected to be able to consume at least a percentage of hours per year, according to the detailed specifications to be developed by the CNMC.
However, it is also established that, for certain types of requests or facilities, due to their nature or technological conditioning factors, the firm access capacity requested may be zero or, on the contrary, a minimum firm access capacity may be required. However, supplies which, in accordance with the applicable regulations, must be guaranteed may not request or obtain flexible access capacity.
Regarding the criteria to be taken into account for the assessment of the application for access and connection permits, article 5 states that:
- The criteria for assessing whether or not access capacity exists are those established in Annex III. These include, among others, compliance with the technical criteria of security, regularity and quality of supply of the electricity system established in current legislation, in Circular 1/2024 itself and in the detailed specifications approved by resolution of the CNMC.
- The criteria for assessing the feasibility of the connection are those set out in Annex IV (essentially, compliance with the technical and safety conditions applicable to the electrical coupling of the facilities applying for the permit). The connection will be considered non-viable when there is a technical impossibility, when the safety of the installations is compromised or when there is non-compliance with the regulations on the part of the applicant.
- The criteria for assessing whether an application for network access and connection has an influence on a network other than the one to which it is intended to be connected are set out in Annex V.
Where the study determines that the requested capacity does not exist at the requested connection point, the best solution may be proposed based on an alternative firm capacity (i.e. the maximum allowable power that can be served with guaranteed supply) and/or available flexible capacity, provided that the applicant has requested it.
Circular 1/2024 also amends articles 6.9 and 7.2 of Circular 1/2021, in that it adds that both applications and permits for access and connection of storage facilities must include relevant information from the demand side.
Finally, Circular 1/2024 provides for obligations to publicise relevant information through the processing platforms to facilitate informed decision-making by developers of self-consumption and electric vehicle charging facilities. Furthermore, in accordance with articles 16 and 17, grid operators must keep detailed information on available capacities accessible and updated on a monthly basis on their website.
This Circular 1/2024 comes at a time when an access and connection methodology for demand-side facilities was more than eagerly awaited in the sector. In recent years, the CNMC has resolved numerous access disputes requesting access and connection permits for storage facilities. Storage facilities (or batteries) are facilities that, at certain times, can also behave as electricity demand facilities and, therefore, require more demanding supply guarantees.
However, as encouraging as this Circular 1/2024 may seem, the First Transitional Provision makes it clear that flexible access capacity permits cannot be requested or granted until the regulatory development that allows its full application is approved by CNMC resolution.
