Connecting renewable energy producers to the grid may require an increase in the capacity of the connection line and expansion of network capacity from the connection point. Some of these costs are recoverable on the transmission network and the network operator and producers are compensated by Swissgrid (Art. 15b ESA; Art. 13e f. ESO).
In cases where renewable energy systems are connected to the medium-voltage grid and higher, compensation is subject to submission of an application by the distribution system operator and approval by ElCom (Art. 15b para. 3 ESA).
ElCom assesses applications for increases to network capacity for connections to the medium-voltage grid and higher based on three criteria:
- Necessity
The network operator must provide evidence of the need to increase network capacity based on installed plant output using recognised norms and regulations (e.g. ‘D-A-CH-CZ Technische Regeln zur Beurteilung von Netzrückwirkungen’ or EN 50160).
- Cost-effectiveness
Network operators are obliged to connect power production plants to the most favourable feed-in point from a technical and financial perspective. Several options must be produced. The most favourable option from a financial perspective is the one with the lowest overall costs that meets the legal and technical requirements.
- Network connection point (cost distribution)
The network connection point is generally the last point from which other users are connected to the grid. The network connection point is determined based on the least expensive option and not vice-versa.
In cases where renewable energy systems are connected to the low-voltage network, distribution system operators can apply for flat-rate compensation of CHF 59 per kW of newly installed production output for the general requirement to increase network capacity regardless of the output actually produced (Art. 15b para. 4 ESA; Art. 13e para. 2 ESO). Distribution system operators must submit applications for flat-rate compensation for connections to the low-voltage network to Swissgrid (Art. 13f para. 1 and 2 let. a ESO).
If the capacity of existing connection lines is increased for renewable energy production systems with output of over 50kW, maximum compensation of CHF 50 per kW of newly installed output is provided (Art. 15b para. 5 ESA; Art. 13e para. 3 ESO). Distribution system operators submit the application for compensation to Swissgrid on a monthly basis and transfer the remuneration to the producer (Art. 13f para. 1 let. a and b ESO).