Connection requests for renewable generation, EV chargers, data centres and battery storage are surging across Europe and the grid can’t keep up with this pace. Flexible connection agreements (FCAs) have emerged as one way to let users connect to the grid sooner with conditional access, instead of waiting for a fully firm connection. The agreement is contractually arranged between the grid company and applicant and may include information on when and how grid access may be restricted, what capacity remains guaranteed, how restrictions are communicated, and if any financial reduction applies. Flexible connection agreements ought to speed up grid connections in congested areas and provide grid companies with a congestion management tool. These benefits, however, depend entirely on the design, and, if left unregulated, FCAs risk becoming a restrictive tool rather than a connection solution.
In Flex to connect, RAP expert Fjolla Fazliu examines how FCAs are used to mitigate electricity grid queues. This report examines the national FCA rules of 20 European countries and explains design elements observed across all FCA frameworks assessed. A detailed annex further summarises how FCAs are regulated at the national level.
KEY MESSAGES
- National regulators must set binding minimum rules for FCAs, as grid companies currently design them with little oversight.
- Since grid companies have structural leverage over applicants to connect, regulators should develop implementation rules, in consultation with stakeholders, to safeguard transparency and consumer protection.
- Grid capacity planning should be considered holistically, alongside grid tariffs, RES support schemes and locally procured flexibility.
- Regulators should require that methodologies for calculating any FCA tariff discounts are published, auditable and reviewed periodically, since discounts that do not reflect avoided real costs risk cross-subsidising other grid users.
