Energinet ordered to submit new grid connection method for approval

Energinet, Denmark’s state-owned energy company, has been ordered to submit its method for prioritising new electricity grid connections for approval, DR reported, citing a decision by the Danish Utility Regulator.

Energinet changed its model for prioritising large projects seeking to connect to the strained power grid, but the new method was never submitted to the regulator. The company now has six months to provide a detailed description of the model.

“We will approve it if we assess that it meets the required criteria,” Carsten Smidt, director of the Danish Utility Regulator, told news agency Ritzau.

Under the new approach, projects are grouped into batches rather than being processed individually and continuously. Energinet said in May that projects would be assessed based on their maturity, progress and impact on the grid.

The regulator said the method does not necessarily breach existing rules. The order concerns only the fact that Energinet failed to submit the method for approval, it said.

The regulator will examine whether the method complies with principles of non-discrimination and objectivity. Until a decision is made, Energinet can continue using the method to prioritise new connections.

The order follows widespread criticism of the slow expansion of Denmark’s electricity grid, including criticism from the National Audit Office. In March, Energinet paused the connection of new projects.

Energinet said in May that no new grid connection agreements would be signed until the autumn. For very large connections, the waiting time could in some cases be five to 10 years. The company also acknowledged that demand had risen at an unexpectedly rapid pace.

A political majority has separately agreed on an emergency plan under which large data centres will be placed at the back of the queue for access to the strained grid. The plan is intended to allow Energinet and electricity companies to choose which applicants are connected, with critical societal functions given priority.

Energinet’s legal director, Jon Iversen, said in a written comment that the company had taken note of the regulator’s decision. He said Energinet expected to continue processing applications and did not expect the decision to affect its planned work to allocate capacity during the autumn.

Energinet is also seeking clarification on whether new rules on project prioritisation currently being considered by Parliament will remove the need to submit a method for approval in areas covered by those rules.