Energinet consults on permanent limited grid access for electricity producers
Background
The proposals seek to make better use of existing grid capacity by allowing Energinet to restrict electricity injections when transmission capacity is insufficient. Unlike temporary limited access, permanent limited access would not involve a commitment to expand the transmission grid to secure full access for the capacity concerned. Producers would instead accept potentially indefinite restrictions in return for exemption from specified connection contributions.
The proposals concern new products within the regulatory framework for flexible connection agreements. Energinet intends to submit the draft methods to the Danish Utility Regulator (Forsyningstilsynet) after the consultation. The products are not yet approved or available: regulatory approval and the necessary technical and contractual implementation would be required.
The prospect of an earlier grid connection could be a key reason to choose permanent limited access. Acceptance of curtailment may be relevant to a project’s “grid friendliness” under the capacity prioritisation framework and could therefore support its prioritisation. For developers, the potential value is not only lower connection contributions, but also the possibility of bringing a project into operation sooner. Limited access would not, however, guarantee capacity allocation or a connection date. Any later request for full access would be assessed under the rules then applicable, on equal terms with other applicants.
Which projects could use the new products?
The proposals cover two products. Permanent limited access for transmission-connected projects (TSO-BNA) would be agreed with Energinet, the transmission system operator (TSO), for new connections or additional injection capacity at existing connection points. Permanent limited transmission access for distribution-connected projects (TSO-DSO-BNA) would be established through an addendum to the connection agreement with the local distribution system operator (DSO). The latter product would require at least 1 MW of interruptible injection capacity.
Both products concern electricity supplied to the grid, not electricity drawn from it. Battery projects would therefore need to assess their rights to draw electricity from the grid separately. For a distribution-connected project, the right to inject electricity into the distribution grid and the right to use the upstream transmission grid are distinct. A project could have full access to the local distribution grid while accepting permanent limited access to the transmission grid. Permanent limited transmission access could also be combined with limited distribution access, subject to the proposed rules on how the agreed injection capacity is structured.
The proposals should not be understood as a general opportunity to reduce payments for existing connections. According to the public consultation notes, capacity already covered by full or temporary limited transmission access could not generally be converted to permanent limited access. Additional injection capacity at an existing connection point would need to be assessed separately.
Specific connection contributions reduced and ongoing tariffs remain
Under the proposed changes to Energinet’s producer payment methodology, capacity with permanent limited transmission access would be exempt from the contribution towards the local transmission network. Distribution-connected projects would also be exempt from Energinet’s transformer contribution where it would otherwise apply. Transmission-connected projects would still pay the station contribution.
The full ongoing injection tariff would remain payable, as would applicable physical connection costs and the costs of metering, control and technical implementation. The financial benefit would therefore depend on the individual project’s connection arrangements. It would not amount to a general exemption from connection charges or ongoing tariffs.
How curtailment would work
Energinet would be entitled to require partial or complete curtailment of the limited injection capacity to address insufficient transmission capacity within a bidding zone. Restrictions could apply during normal operation as well as planned outages or faults. The products would not be used to manage congestion on interconnectors between bidding zones or to meet a general balancing requirement.
Curtailment could be instructed without advance notice and could reduce the limited injections to zero. Instructions issued by Energinet during operation would generally have to be implemented within 12.5 minutes, while faster automated responses could be required for transmission connections. Instructions issued through a DSO would also be subject to the applicable local response and ramping requirements.
A key feature is that Energinet cannot guarantee the maximum extent of curtailment. Permanent limited access would generally be curtailed before temporary limited access and full access. Under the intended permanent operating model, available capacity would normally be shared pro rata between permanent limited users affected by the same constraint, subject to operational circumstances.
Producers would receive no compensation for curtailment or disconnection carried out in accordance with the proposed terms and would bear the resulting losses and costs, including lost revenue and imbalance costs. Permanent limited access would not itself prevent participation in ancillary services markets, provided the installation meets the applicable prequalification and market participation requirements. However, producers would participate at their own risk: curtailment under the limited access terms could affect their ability to deliver contracted services and would not constitute a paid activation of a downward regulation bid. The drafts preserve potential liability for restrictions or disconnections outside those terms caused by gross negligence or intentional conduct.
Commercial implications for developers and investors
The proposals could offer a useful alternative for projects able to accept less predictable access to the grid. However, savings on specified connection contributions should not be assessed in isolation. The commercial value will depend on location, production profile and curtailment over the life of the project. Energinet warns that new generation with the same profile as existing generation in production-surplus areas may face very substantial restrictions. Batteries and other installations able to control when they inject electricity may be better placed to benefit.
Developers and investors should test the business case against a range of curtailment scenarios rather than assume a fixed level of grid availability. Power purchase agreements, optimisation agreements and financing assumptions should reflect the allocation of curtailment and imbalance risk. Agreements with the electricity trader and balance responsible party should also address the interim bidding requirements and the treatment of activation payments.
For distribution-connected projects, transmission and distribution access must be assessed together. If Energinet and the local DSO issue simultaneous restrictions, the more restrictive limit would apply. The proposed rules also limit how full and limited transmission access can be combined behind the same connection point.
Technical compliance is equally important. Failure to follow a curtailment instruction could lead to disconnection of the entire installation, including capacity outside the limited access arrangement, if necessary to address the operating situation. Serious or repeated non-compliance could also result in enforcement measures and loss of the right to use the limited access product.
Next steps
The consultation closes on 13 November 2026. The products would become available only after regulatory approval and the necessary implementation. For distribution-connected projects, availability would depend on implementation by both Energinet and the relevant DSO.
Developers and investors considering permanent limited access should review the proposed terms alongside the changes to producer payments and their project agreements. Plesner is monitoring the development closely. If you have any questions, please contact our Energy and Infrastructure team.