Federal Network Agency Clears Way for Grid Connection of Biogas Power Plant

In a decision of 25 February 2011, the 7th Ruling Chamber of the Federal Network Agency ordered E.ON Edis, a subsidiary of E.On AG, to submit a contract for grid connection of a biogas power plant to Munich-based Landwärme GmbH without delay. Additionally the chamber held that E.ON Edis violated a number of provisions of the Gas Grid Access Ordinance (GasNVZ) applicable at the time.

E.ON infringed GasNVZ insofar as

  • the company did not inform plaintiff about the result of its assessment with regard to the grid connection of the power plant in question within the time limit stipulated by GasNVZ
  • it did not undertake all necessary assessments for the grid connection
  • it did not submit a contract offer for grid connection within the time limit set by GasNVZ

the chamber ruled. The chamber also ordered E.ON to pay a penalty of EUR 500,000 if it does not submit the contract offer within one month after notification of the decision.

Even though substantial parts of the 45-page decision are blackened out to protect trade secrets, the decision shows that the old GasNVZ as well as the new GasNVZ (Section 33) required the grid operator to connect biogas power plants to the grid without delay to reach the targets for biogas input into the natural gas grid set in Section 31 GasNVZ. To this end, they have to make an assessment of the grid connection within a short period of time, thereby detailing all necessary information, technical requirements and steps that have to be taken as well as the resulting costs.

Source: Federal Network Agency

Related posts: