PV Grid Project Report Initial en
PV Grid Project Report Initial en
I N T E L L I G E N T E N E R G Y
E U R O P E
April 2013
www.PVGRID.EU
Main Authors
Paolo Michele Sonvilla, Edoardo Binda Zane, Anna Poblocka and Robert Brückmann (eclareon GmbH)
Michel Vandenberg (DERlab)
Disclaimer: The sole responsibility for the content of this publication lies with the authors. It does not necessarily
reflect the opinion of the European Communities. The European Commission is not responsible for any use that
may be made of the information contained therein.
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Table of contents
INITIAL PROJECT REPORT 1
D4.13 1
1 EXECUTIVE SUMMARY 4
2 INTRODUCTION 8
3 ASSESSMENT OF NATIONAL FRAMEWORKS FOR PV DEVELOPMENT 9
3.1 Research on National Administrative Frameworks 9
3.2 Barriers to PV System Development and Operation 10
3.3 Summary of National Frameworks 12
4 ENHANCING PV HOSTING CAPACITY IN DISTRIBUTION GRIDS 29
4.1 Prioritising Technical Solutions for PV Integration 29
4.2 Preparation of Normative and Regulatory Recommendations 33
5 PV GRID CONSORTIUM 36
6 GLOSSARY 39
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1 EXECUTIVE SUMMARY
PV GRID is a European project operating in the framework of the Intelligent Energy Europe Programme, started in May
2012. The project consortium is composed by 21 partners covering 16 European countries, coordinated by the German
solar industry association, BSW-Solar.
The overall goal of the PV GRID project is to address the regulatory, administrative and technical requirement barriers
hampering the integration of PV into the electricity distribution grids in Europe through two main actions:
• assessing national frameworks for PV development in the participating countries;
• enhancing PV hosting capacity in distribution grids by favouring the adoption of available technical solutions.
The share of legal-administrative costs over total project development costs (excluding PV equipment and other
materials, Figure 1.1) can provide an idea of the economic burden that project developers have to bear in order to
secure the authorisations needed to build and connect a PV system. This burden is normally reflected in national PV
system prices.
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Figure 1.2 - PV project development: Legal-administrative Labour Requirements
The total labour required for accomplishing the permitting and grid connection procedures (Figure 1.2) can instead
serve as a measure of the complexity and lack of transparency hidden within these administrative procedures.
The total duration of the development process for a PV project (Figure 1.3) is another measure of the economic risk
faced by investors: the more it takes to build and connect a PV system, the longer investors are financially exposed
without earning revenues. Additionally, the waiting time spent uselessly by a developer waiting for an answer from an
authority or a grid operator can be a measure of the inefficiency shown by such parties in dealing with their tasks.
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Barriers
A relevant part of the research carried out in PV GRID deals with the assessment of barriers encountered in the
development and operation of PV systems. These barriers have been identified and verified by means of qualitative
research and direct communication with PV system developers active in national markets.
Even though the focus of PV GRID research activities is on administrative frameworks, it is natural that national industry
associations and other interviewed stakeholders also tend to highlight barriers that are not purely administrative, but
rather deal with technical requirements, regulatory matters and economical profitability issues. This information
cannot be discarded and it is therefore also recorded in this report.
Following a review of the collected body of information, these barriers have been grouped in four main categories:
• Permitting Procedures, including barriers involved in those administrative processes necessary to authorise the
construction of a PV system: e.g., building permits, environmental impact assessments, electricity production
licenses:
• Grid-related, including barriers linked to the accomplishment of the grid connection procedures and those dealing
with technical grid requirements, grid access or grid capacity issues;
• Support-related, including barriers related to regulatory instability and the (arguable) shortage of support schemes;
• Operation & Maintenance, including those barriers arising from the instability of support schemes and from
administrative or technical requirements for the operation of PV systems.
The analysis of barriers found during the initial research activities will continue over the remainder of the project. In
particular, the information on grid-related barriers will be fine-tuned and passed to the project partners that are
responsible for the other main activity of PV GRID, the analysis of normative and regulatory barriers hindering the
large-scale integration of PV on distribution grids.
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Category # Technical solution
1 Network Reinforcement
2 On Load Tap Changer for MV/LV transformer
3 Advanced voltage control for HV/MV transformer
4 Static VAr Control
DSO
5 DSO storage
6 Booster Transformer
7 Network Reconfiguration
8 Advanced Closed-Loop Operation
9 Prosumer storage
10 Self-consumption by tariff incentives
PROSUMER 11 Curtailment of power feed-in at PCC
12 Active power control by PV inverter P(U)
13 Reactive power control by PV inverter Q(U) Q(P)
14 Demand response by local price signals
15 Demand response by market price signals
INTERACTIVE 16 SCADA + load control
17 SCADA + PV inverter control (Q and P)
18 Wide area voltage control
Table 1.1 - Summary of technical solutions for congestion management and voltage quality issues
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2 INTRODUCTION
Foreword
Energy imports currently contribute significantly to the trade deficit of the EU. A vigorous expansion of renewable
energies is currently a recognised way to confront the dependency on energy imports. European fossil fuel resources
diminish steadily and have an extremely negative CO2 balance. Therefore, the development of photovoltaic (PV) and
other renewable energy sources (RES) is not only environmentally, but also economically a valid alternative.
The PV GRID project aims to indicate how the integration of large amounts of PV and RES in the energy supply system
may be facilitated, and aims to point at obstacles that hinder the development of RES. Since PV has arguably the
greatest potential among renewable generation, this project focuses on this technology without entirely neglecting
other RES.
PV GRID
PV GRID is a transnational collaborative effort in which sixteen national and European solar industry associations, three
distribution system operators, a policy consultancy, a technical consultancy and a regulatory research institute
collaborate within the Intelligent Energy Europe Programme. The project is coordinated by the German solar Industry
association, BSW-Solar.
The overall goal of the PV GRID project is to address the regulatory, administrative and technical requirement barriers
hampering the integration of PV into the electricity distribution grids in Europe through two main actions:
• the assessment and comparison of national frameworks for PV development in the 16 participating counties;
• the prioritisation of technical solutions available for enhancing PV hosting capacity in distribution grids and the
formulation of regulatory and normative recommendations for their adoption.
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3 ASSESSMENT OF NATIONAL FRAMEWORKS FOR PV
DEVELOPMENT
3.1 Research on National Administrative Frameworks
The research activity within PV GRID focuses on the administrative frameworks for PV system development and
operation in 16 European countries. The research tasks are carried out by the participating national solar industry
associations coordinated by the eclareon GmbH consultancy. This activity builds upon the legacy of the PV LEGAL
project, which ran from 2009 to 2012 and allowed to build the core of the PV GRID consortium.
The primary research objective is to describe, both qualitatively and quantitatively, the procedures and requirements
involved with the permitting, installation, connection to the grid, and operation of a PV system. As a consequence, the
research allows also identifying those barriers that investors and project developers face when setting up a PV project.
Furthermore, the research is aimed at providing results in a standardised format, making them comparable across
countries.
National PV markets are analysed focusing on three PV market segments: residential systems (PV systems up to 1 kWp
in size), commercial systems (up to 1 MWp in size) and industrial ground-mounted systems (over 1 MWp in size). For
the purpose of the analysis, the PV project development lifecycle is broken down in ten standard processes, which are
then analysed both qualitatively and quantitatively.
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legal solutions, but most of all it is aimed at quantifying the involved in each process. The quantitative data gathered in
each country is reviewed and corrected in order to provide significant and consistent statistics both a national level and
across countries.
PV GRID Database
The outcome of the research methodology outlined above is a database illustrating with a practical step-by-step
approach the procedures necessary to develop and operate a PV system in 16 European countries, complemented with
a set of quantitative indicators that allow comparing across countries the lead times and administrative burdens faced
by PV project developers and investors.
The PV GRID database is accessible online at http://www.pvgrid.eu/database/.
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Permitting Procedures
Administrative permitting procedures affect PV projects quite differently, depending on the market segment and on the
regulations that apply to systems belonging to that segment.
In the residential segment, the administrative permitting process is in most cases simple and requires only a building
permit or a simple notification to the municipality stating that the PV system will be installed. In the commercial
segment, the administrative permitting process can become more challenging. Planning permissions and
environmental impact assessments are more frequent and in some countries and an electricity production license may
also be required. In the industrial ground-mounted segment, the administrative permitting process is usually complex
and time consuming. Given the typical large size of these plants, compliance with local land or urban development
plans needs to be ensured. Furthermore it is commonly necessary to undergo an environmental impact assessment and
to verify the acceptance of the new plant by the local communities. The administrative lead times are normally in the
range of a year or more.
Examples of barriers encountered at this stage include:
• Presence of restrictions on the land: the chosen location of the PV plant may be subject to specific limitations due
to land use plans, e.g. the chosen are could be a special protection zone, or the zoning of the land would not allow
the construction and operation of a PV plant. Often, overcoming such requirements is not straightforward and may
be extremely time-consuming;
• Environmental impact assessment requirements: it is not always clear under what criteria an environmental impact
assessment may be required. This assessment is usually time- and cost-intensive and can thus pose a strong barrier
to the development of a PV project;
• Regional regulations: there may be relevant regulations that exhibit changes across regions, and this may prove
challenging in case investors wish to develop plants in more than one location or in case the connecting line would
pass through different regions. In such cases, there would be additional administrative burdens for the developers,
as they would need to deal with two or more set of requirements.
Grid-related
Grid-related barriers represent, together with those in permitting procedures, one of the two main groups of barriers
that have been identified in the PV GRID research. Such barriers appear in the grid connection permit and in the grid
connection and commissioning process.
These processes may vary largely in the three market segments, in terms of requirements and in terms of
administrative procedures, going from a mere notification for residential systems to a more complex procedure for
commercial systems. Often, barriers are encountered in the case of larger plants, given the additional complexity
involved.
In general, for industrial ground-mounted systems, the grid connection process consists in an initial request phase,
during which a request for a connection point is sent either to the competent distribution or transmission system
operator. After internal consultations and the opportune technical verifications, the grid operator will reply to the
system developer confirming the access point and presenting an offer for the realisation of the connection works, or
refusing the access point request. In the latter case, the grid operator is normally required to provide an alternative
access point and connection works offer. Once the PV system developer accepts a connection offer, a provisional
connection contract is signed between the two parties, a deposit is paid to the operator and usually the works for
installing the PV systems can start. Once the PV system construction and installation has been finally completed, the PV
developer will contact the grid operator and request that the connection works are executed. Finally, after a brief test
and commissioning phase, the PV system will be connected to the grid and will begin feeding electricity into it. At this
point, the PV system owner and the grid operator generally conclude the process signing a connection contract.
The main barriers encountered at this stage include:
• Grid connection costs: in case a developer wishes to connect his or her plant in an area where the existing grid is
relatively weaker, there may be a need to reinforce the grid so that all generated electricity can be fed in and
transported. Depending on the regulatory framework, the grid operator may have the possibility of charging the
plant operator with the grid expansion costs, which can be extremely high;
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• Grid access: In certain countries RES access to the grid is today not guaranteed in practice, often due to grid
capacity issues that are strongly questioned by the RES sector stakeholders;
• Long waiting times: developers are sometimes put in the position of having to wait a long time before they can
start feeding electricity in the grid. Due to the impossibility of generating revenues, developers can be faced with
difficult financial situation and in extreme cases be forced to abandon the project.
Support-related
Although the goal of PV GRID is not specifically to analyse and report on support schemes, administrative requirements
linked to this issue are considered relevant in the context of project development, and as such are assessed in this
project. Regardless of the market segment, these issues are relevant in two contexts: administrative requirements and
financial aspects. The first two barriers outlined below relate to the former area, whereas the third one relates to the
latter.
The main barriers encountered with respect to support schemes include:
• Complex and long procedures: complex procedures for accessing a support scheme may be particularly daunting
for smaller developers. This kind of barrier in fact impacts on the project developer mainly in terms of labour, and
whereas this could be a minor amount with respect to the total labour required for a larger plant, it could be a
relatively large one if the project is relatively small and managed by a smaller company;
• Market caps: a limitation to the support scheme, for example in the form of a capacity cap or budget cap, may be
used to control the deployment of PV systems in a country. This situation has been identified in five countries
among the covered ones;
• Regulatory Uncertainty: refers to a situation in which there is a high frequency of changes in the support scheme
framework. These include changes in the technical requirements, in the tariff, in the type of support scheme offered
or in the eligibility of a plant. Under these conditions, investors may perceive an unstable environment and be less
willing to invest in a PV system.
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Austria
Figure 3.1 - PV project development: share of administrative costs, duration and waiting time
Permitting Electricity Electricity The Federal Electricity Acts requires electricity permit procedure. Whether an
Procedures production Production electricity permit is necessary, depends on the peak power of the PV system and
licence on the federal limits. For small-scale plants a simple procedure is allowed without
an on-site approval meeting. Larger systems need to be approved within an on-site
negotiation meeting. Sometimes also several expert are required which cost
money and cause delay.
Permitting Request of green Support Project applicants can apply for a green power feed-in tariff on a dedicated
Procedures power feed-in Scheme(s) website. Due to the limited overall promotion budget of 8 million €, not all project
tariff and limited applicants can be supported. Request for feed-in tariff support has to be entered
promotion very quickly in order to get properly queued. Because of this, the speed of handling
budget of this web interface is a crucial success factor.
Grid-related Grid capacity Grid Connection According to the Electricity Management and Organization Act, network operators
constraint Permit are obliged to connect PV systems with priority to the grid. Upon verification of the
grid capacity, the network operator either approves by sending a contract, or
makes it dependent on successful commissioning. If sufficient grid capacity at the
nearest possible connection point is not available, the network operator claims to
reinforce the grid at the cost of the project applicant.
1
Innovative Energietechnologien in Österreich Marktentwicklung 2011,Biermayr et. al. (BMVIT) 2012
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Belgium2
Figure 3.2 - PV project development: share of administrative costs, duration and waiting time
Permitting Urban permission Administrative Regarding classified buildings, there are no clear and specific criteria to give or
Procedures rejection Process reject an authorization for PV system installations. This mainly depends on the
opinion of the officers responsible for this decision.
Permitting Inappropriate Administrative Municipal officials are not always experienced with this difficult law (CWATUPE).
Procedures procedure Process It has been reported that sometimes a longer procedure – not necessarily the
simplest or fastest one – is being asked for by the authority to be on the safer
side.
Support- Support level Support Schemes Up to a PV system capacity of 250 kWp it is possible to receive four green
related conditioned to certificates per MWh produced, with the condition that the self-consumption of
50% self- electricity is at least equal to 50% of the production every three months.
consumption
2
Not including Flanders
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Bulgaria
Figure 3.3 - PV project development: share of administrative costs, duration and waiting time
Grid-related Rescheduling of grid Grid Connection A decision of the National Electricity Company for rescheduling the
connection Permit grid connection of large and middle scale PV is broadly interpreted
procedures and currently applied to all segments. DSOs are postponing the time
of grid connection for small installations after 2016 or blocking the
grid connection procedure.
Grid-related Grid access fee PV System The retroactive introduction of a grid access fee has created the
Operation danger of bankruptcies, as many of the producers were caught by
surprise and currently cannot pay their bank credits.
Grid-related Temporary restriction Grid Connection There is a temporary restriction for development of new RES projects
Permit caused by the annual decision for maximum available grid capacity
for RES projects. The decision for 2012 provided no available capacity.
Thus, no new PV projects will have access to the electricity grid until
the next decision of the Regulator due in July 2013.
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Czech Republic
Figure 3.4 - PV project development: share of administrative costs, duration and waiting time
Grid-related Refusal to Grid There is a risk that grid operators refuse the connection approval. It is often not clear
connect lacking Connection what the true reasons are, although the operator usually argues they are of purely
substantial Permit technical nature. Usually, distributors argue there is insufficient grid capacity in the
explanation respective location and thus another generation plant with non-linear production could
cause a serious damage to it.
Operation & Retroactive Support The support scheme is unstable and there has been a retroactive reduction of the FiT as
Maintenance changes of the scheme well as the introduction of new taxes and fees.
support scheme
Grid-related Heterogeneous Grid DSOs show a non-standard approach towards applicants, applying different requirements
approach to the Connection without justification.
applicants Permit
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France
Figure 3.5 - PV project development: share of administrative costs, duration and waiting time
Grid-related Grid capacity Grid Connection Often, technical constraints exist relatively to the grid integration capacity in
constraint Permit some areas. If the installation is too far from the grid, or if the grid is
overloaded, sometimes, specific grid expansion works must be made by the
DSO.
Grid-related Waiting times Grid Connection Waiting times in for obtaining the permit may be extremely time-consuming.
Permit
Grid-related Grid connection Grid Connection Since a December 2010 law, producers have to pay 100% of the grid
fees Permit connection fees, instead of 60% (previously, the remaining 40% were born by
the DSOs). Additionally, since 2013 owners of PV systems above 36 kWp have
to pay a share of a dedicated grid connection fee applicable to RES, which
aims to finance specific investments on the grid necessary due to RES
penetration.
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Germany
Figure 3.6 - PV project development: share of administrative costs, duration and waiting time
Permitting "Change of use" Administrative The exemption of PV systems from the requirement to obtain planning
Procedures induced by the Process permission does not cover the possible change of use of non-commercial
installation of a PV buildings induced by the installation of a commercially used PV system on the
system on a building building. In that case, the developer has to apply for permission for change of
use of the building.
Grid-related Technical grid Grid The relevant technical connection conditions for PV systems are created by a
connection conditions Connection committee (FNN), in which the grid operators have the majority. The
Permit connection conditions contain regulations that make the connection of
renewable energy systems difficult. Moreover, the value of the FNN standards
as recognised rules of technology is in part criticised by planners, installers
and operators.
Permitting Difficulties finding Site Selection Suitable areas for PV ground-mounted systems have become rare and require
Procedures locations for ground- the approval of municipalities. Project developers must invest a lot of time to
mounted systems identify areas and subsequently negotiate with the owners of the areas and
the municipalities in order to implement a project.
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Greece
Figure 3.7 - PV project development: share of administrative costs, duration and waiting time
Permitting Suspension of new Grid Suspension of new applications commercial systems segment is the
Procedures applications Connection major barrier as of August 2012.
Permit
Grid-related Grid connection Grid Since mid-2010, the grid connection process has become a serious barrier
bottleneck Connection in the commercial and industrial segments due to the long waiting time
Permit for file to be processed.
Permitting Exclusion of prime Site New installations of ground-mounted systems (having filed an application
Procedures agricultural land for PV Selection to the Grid Operator after 21-9-2011) are not allowed on prime
installation. agricultural land. This barrier was not in place in the period June 2010 -
Sep. 2011.
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Italy
3
Figure 3.8 - PV project development: share of administrative costs, duration and waiting time
Permitting PV system registry Administrative The PV system registry, in those cases when it is required, greatly
Procedures Process discourages the installation of PV systems.
Permitting Lengthy permitting Administrative Restrictions relating to protection of the environment, landscape and
Procedures process Process historical/artistic heritage can be imposed by various administrations. The
permission from regional Superintendencies, when necessary, can lead to
considerable delays. The conduct and waiting times can vary according to
the territorial offices concerned.
Permitting Electricity Production Electricity For the Electricity Production Licence request, procedures and paperwork
Procedures Licence Production might differ a lot according to the territorial offices involved. The legal-
(PV systems larger than administrative as well as the technical workload may not be uniform. Long
20 kWp) waiting times and difficult communications with the relevant authority
(Ufficio Tecnico di Finanza - UTF) are reported.
3
Results for Italy are not available at the time of publishing. Please check the PV GRID database for up to date information.
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The Netherlands
Figure 3.9 - PV project development: share of administrative costs, duration and waiting time
Permitting Denied approval of land Administrative A Municipality may eventually decide to not make an amendment to the land
Procedures development plan Process development plan (or not issue an exemption to the plan) in favour of a
amendment planned PV project. The reasons for such decision can be manifold.
Permitting Lack of designated land Site Selection As the segment for ground-mounted systems is new for the Netherlands, and
Procedures for solar usage notwithstanding the goodwill of regional authorities, the practical reality is
that land designated for solar is scarce.
Operation & Potential impact of PV System As with support schemes, it is likely that the economical conditions for net-
Maintenance changes in net-metering Operation metering will change over time, or that net-metering will be replaced by a
conditions different mechanism. This will have an impact on the return on investment of
the PV system. Today, the volume of electricity that can be net-metered does
already differ depending on the competent Electricity Retailer.
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Poland
Figure 3.10 - PV project development: share of administrative costs, duration and waiting time
Grid-related Lack of established Grid As DSOs do not have experience or established procedures suited to PV
procedures for small PV Connection systems, they typically attempt to delay the issuance of grid connection
systems Permit permits.
Grid-related Unwillingness of Grid The Energy Law places an obligation on the DSO to cover 50% of the
electricity utilities to Connection connection costs for RES under 5 MWp. Nonetheless, DSOs attempt to force
participate in grid and the costs of grid connection onto the developers (the entire cost of grid
connection costs Commissioning connection is reported as higher than it is in reality). It has also occurred that
payment of the entire cost has been demanded to the developers.
Permitting Need to establish a Electricity Because only companies can obtain concessions to produce electricity using
Procedures company production renewable sources (not individuals), the person wishing to install even a
small PV system is forced to establish a company (if they do not already have
one), which is a complicated and lengthy process.
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Portugal
Figure 3.11 - PV project development: share of administrative costs, duration and waiting time
Support-related Resilience of Support Several electricity suppliers do not respect the law and do not accept contracts
electricity suppliers Schemes for the support of small systems. There is a new legislation, since January, that
obliges the last resource commercialization to buy all the production in mini and
Microgeneration.
Grid-related Technical barriers in PV System The technical guidelines are not adequate for a PV installation. The required
construction and Construction installation is much more expensive and the labour costs increase significantly.
connection phase The technical support by the utilities is insufficient.
Grid-related Regional differences Grid As there are various certifying companies in the country’s regions, there are also
in interpretation of Connection various interpretations of technical rules. Thus, it may happen that a technical
grid connection solution is accepted in one region and refused in another. Although it does not
requirements happen very often, some technical rules are subject to change without notice.
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Slovakia
Figure 3.12 - PV project development: share of administrative costs, duration and waiting time
Support-related Long waiting time Support A long time is needed for finalising FiT and Green Energy contracts, mainly
for support Scheme(s) due to the parallel presence of inefficient procedures in the authority and a
contracts high workload to deal with such contracts.
Permitting FiT certificate Support The regional distribution system operator in central Slovakia (SSE-D) requires
Procedures validation Scheme(s) the validation of the FiT certificate. It means that once the producer gets the
FiT certificate and signs the contract with the regulatory office, the
regulatory office notifies the Ministry of Economy and both the producer
and the ministry have 40 days to disclaim the contract. After this period the
producer has to apply to the regulatory office to validate the FIT certificate.
This step is uselessly prolonging the whole process.
Permitting Bureaucracy Administrative It has been reported there is an inappropriate amount of documentation
Procedures Process and steps required by the regulatory office, such as the final inspection of
the building where the PV system is installed, even in the case of small
systems.
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Slovenia
4
Figure 3.13 - PV project development: share of administrative costs, duration and waiting time
Support- Annual cap for Support There is a 5 MWp yearly cap on ground-mounted PV systems up to which Borzen
related ground mounted Scheme(s) (power market operator) can provide the feed-in tariff. Currently, the yearly cap is
PV systems already filled up to the end of 2014.
Grid-related Unfair Grid Some electricity distributors are building their own PV systems and are delaying the
competition from Connection issuing of approvals and contracts to other providers.
electricity Permit
distributors
Permitting Land designation Site Selection Problems in choosing a land plot can arise either through an incorrect classification of
Procedures land (if it is building land) or through the designation of "local interest" as
municipalities themselves have use of the land plots. The plot’s designation can be
changed every 5 years when the municipalities change their urban plans. If the land
plot is not suitable for construction an investor may wait up to 5 years for the
application for the changing of the designation to be processed.
4
Quantitative analysis of the Slovenian framework is not within the scope of the project.
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Spain
Figure 3.14 - PV project development: share of administrative costs, duration and waiting time
Permitting Pre-registry regime Support Inclusion in the pre-registry depends on the quantity of systems on a waiting
Procedures Scheme(s) list, and this creates serious uncertainty on cash flows. For ground-mounted
systems the waiting list currently lasts three and a half years.
Permitting Permitting fees Support Before accessing the pre-registry, and without knowing if it is going to be
Procedures Scheme(s) obtained, it is necessary to forward consistent payments for the building
permit and a financial guarantee.
Grid-related Lack of information Grid Connection DSOs tend not to provide transparent information with regards to the grid
Permit capacity evaluation. Grid data and calculation tools are not available to
connection point applicants.
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Sweden
Figure 3.15 - PV project development: share of administrative costs, duration and waiting time
Support-related Incongruous Support The electricity certification system is not adapted to residential PV systems.
trading conditions Scheme(s) The requirement of hourly production measurements forces the producer to
of electricity buy a service that is too expensive to make any profit from the certificates.
certification system The producer can get certificates without cost for excess electricity fed into
the grid, but this give certificates only for a limited part of the full production.
In addition, the value of certificates is too low to promote the market
development.
Support-related Cap of investment Support Total government budget of investment subsidy is in 2012 limited to
subsidy budget Scheme(s) approximately €7 million (60 MSEK), of which €0.3 million (2.5 MSEK) used to
cover administration costs of the authorities. The budget is too low to allow
for funding to all applicants.
Support-related Electricity Support The value of electricity certificates is set by the market and is too low to
certificate value Scheme(s) promote the market development. Even with electricity certificates, the
production cost of PV electricity will not be lower than the Nord Pool
electricity spot market price. Statistics for historical values of the electricity
certificates are available at the website "Cesar elcertifikat".
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United Kingdom
Figure 3.16 - PV project development: share of administrative costs, duration and waiting time
Support-related PV does not qualify Financing Unlike some other renewable technologies, solar PV does not qualify for
for Enhanced Enhanced Capital Allowances. This means that solar PV is not treated as
Capital Allowances favourably as other technologies with regard to corporation tax.
Grid-related Cost of grid Grid Connection Costs of grid upgrades charged on developers can be prohibitive.
upgrade Permit
Permitting Change of land use Administrative There may be objections to changing the use of the land e.g. from agriculture
Procedures process to power generation, leading to consistent lead times.
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4 ENHANCING PV HOSTING CAPACITY IN DISTRIBUTION
GRIDS
As discussed in the introduction, PV GRID consists of two main actions. In parallel to the assessment of national
frameworks for the development of PV installations described in the previous section, PV GRID also focuses on the
challenges linked to the integration of high shares of PV electricity into the distribution Grid infrastructure. The main
goal of this second action is to prepare the grounds for large-scale integration of PV systems on distribution grids across
Europe.
Organised in three working groups, PV GRID project partners and external experts collaborate in researching and
analysing the issues and discuss solutions on a trans-national level. The main tasks of the working groups are to:
• Review and evaluate the most appropriate technical solutions for integrating PV systems on the distribution grid
infrastructure
• Recommend normative and regulatory solutions that allow for swifter and economic implementation of these
solutions
The normative recommendations will address administrative barriers and other obstacles that either DSOs or PV
operators have to face when implementing technical solutions that would instead allow for higher grid hosting
capacity, such as long permitting times and inappropriate grid codes.
The regulatory recommendations, on the other hand, will address the framework in which DSO and PV systems owners
economically operate. For instance, a certain national regulatory framework may not allow a DSO to recover the costs
of necessary grid-enhancing investments. Also, a PV system operator may not be correctly incentivised (by means of
network fees for instance) to make an efficient use of the distribution grid.
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• WG2 (SMART PV): Discussion of technical issues and solutions on the PV system side.
The initial findings of the working groups were detailed in two internal discussion papers that were the basis for a
discussion that took place in the first of a series of three consultation workshops, participated both by project partners
and external experts. External experts were selected amongst stakeholders of the European electricity sector:
representatives of TSO, DSOs, inverter and storage manufacturers. Following the recommendations of the first
consultation workshop, a short list of technical solutions was proposed. The solutions variants and combinations were
discussed more in depth and the list was further refined through the following workshops in order to reach a large
consensus between stakeholders.
The results of this process are listed in Table 4.1. The table presents a list of technical solutions that potentially can
increase the hosting capacity in distribution grids. As already mentioned, only those technical solutions having an
impact on voltage quality and local congestion management have been considered in the remainder of this work.
As some of these technical solutions may be applied for both voltage quality and congestion management problems, it
was decided to reclassify them according to the following 3 categories:
• DSO solutions that are implemented within the grid operator infrastructure and require no communication with the
consumer (or prosumer);
• PROSUMER solutions which are implemented within the consumer (or prosumer) infrastructure and require no
communication with the grid operator;
• INTERACTIVE solutions that are implemented within both the grid operator and the prosumer infrastructures and
where the different components react based on signals exchanged via a communication infrastructure.
DSO solutions
• Network reinforcement - Further grid hosting capacity is provided by additional cable and transformer capacity
installations.
• On Load Tap Changer (MV/LV transformer) - The OLTC device is able to adjust the lower voltage value of an
energized transformer.
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• Advanced voltage control (HV/MV transformer) - This solution includes new control methods for existing HV/MV
transformers with already installed OLTC.
• Static VAR Control - Utilizing Static VAR Compensators (SVC) enables to provide instantaneously reactive power
under various network conditions.
• DSO storage - Storing electricity with a central storage situated in a suitable position of the feeder enables to
mitigate voltage and congestion problems.
• Booster Transformers - Boosters are MV-MV or LV-LV transformers used to stabilize the voltage along a long
feeder.
• Network Reconfiguration - Revising network operational conditions by reconfigurations, in particular the
boundaries between feeders in MV networks, is a method to enhance the voltage profiles in distribution networks.
• Advanced Closed-Loop Operation - Two feeders are jointly operated in a meshed grid topology controlled by a
Smart Grid architecture to decrease the circuit impedance while increasing the short circuit power.
Prosumer solutions
• Prosumer Storage - Storing electricity at prosumer level enables to mitigate voltage and congestion problems if a
reduction of the feed-in peaks can be ensured.
• Self-consumption by tariff incentives - With a fixed tariff structure (e.g. feed-in price lower than consumption
price), the prosumer is motivated to shift its electricity consumption in order to reduce its injected PV energy. A
maximum feed-in power based tariff (e.g. kWh price set to zero or to negative values above some feed-in power
limits) could further help in reducing injected PV peak power.
• Curtailment of power feed-in at PCC - The meter at the customer’s site controls that the feed-in power is never
above the contracted maximum power or above a fixed value (e.g. 70% of the installed PV capacity as implemented
in the German Renewable Energy Act). This solution requires the meter to be able to control down the PV
production or to activate a dump load.
• Active power control by PV inverter P(U) - Voltage and congestion problems can be solved by curtailing the PV
feed-in power. Contrary to the fixed power curtailment as described in previous solution the LV grid voltage is used
as an indicator for the grid situation and for the curtailment level.
• Reactive power control by PV inverter Q(U), Q(P) - Providing reactive power as a function of the local voltage value
[Q=Q(U)] or as a function of the active power production [Q=Q(P)], limits the voltage rise caused by distributed
generators.
Interactive solutions
• Demand response by local price signals - Demand response is triggered by local price signals available only to
consumers located in feeders that experience voltage and/or congestion problems.
• Demand response by market price signals - Demand response is triggered by electricity market price signals, which
are identical for consumers wherever they are located.
• SCADA + direct load control - In critical grid situations, DSOs or energy aggregators are allowed to remotely activate
(or curtail) dedicated consumer loads, based on agreed contract.
• SCADA + PV inverter control (Q and P) - The level of reactive power provision and the active power reduction of
dedicated PV inverters are remotely controlled by a feeder supervisory control system.
• Wide area voltage control - All controllable equipment (like transformers with OLTC, static VAR compensators,
dedicated loads and PV inverters) are coordinated to optimize voltage and power factor in the whole DSO area.
Smart grid technologies are applied to measure the voltage and power factor at several points, controlling the
equipment, coordinating and optimizing the generation and load.
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normative and regulatory actions that will allow a swifter and more economical implementation of the most promising
technical solutions.
Performance Indicators
In a second step, utilising the evaluation results obtained in the first step, two multi-criteria performance indicators
were defined for assessing both the techno-economic and the regulatory priority for each solution:
• techno-economic indicator, based on the three criteria: investment cost, impact on voltage and impact on
congestion, opportunely weighted in order to represent the current priorities for DSOs;
• regulatory priority indicator, which indicates if the implementation of a technical solution is facing a regulatory
barrier and how urgent it is to remove this regulatory barrier. This indicator is defined as in Table 4.2.
Regulatory
Technology Regulation
Priority Recommendation
available? needed?
Index
1 YES YES Urgency to adapt regulations to an available technology
Finally, the results of the techno-economic indicator for the different countries have been combined in order to define
a ranked list of technical solutions at European level for two grid types (LV and MV).
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Based on the outcome of this last consultation round, the ranking of technical solutions was finally adjusted. The results
for the techno-economic indicators were aggregated in two preference lists (one for each voltage level) with three
priority categories in order to better reflect the position of all stakeholders. These preference lists are illustrated in
Table 4.3 and Table 4.4.
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Prioritisation results for LV grids
Table 4.3 presents the final evaluation results based on the stakeholder consultation. The list of high priority solutions
includes two DSO solutions (the classical network reinforcement and the new product OLTC for MV/LV transformers)
and four PROSUMER solutions (storage, reactive power provision by PV inverters and the 2 curtailment variants of PV
power). No regulatory barriers have been identified for the DSO solutions (green colour in table). On the contrary,
regulatory barriers are present for PROSUMER solutions. In the low priority category are gathered the solutions based
on electricity price signals, the sophisticated closed loop operation and solutions less relevant to this voltage level.
Network Reinforcement
Prosumer storage
Network Reconfiguration
Booster Transformer
DSO storage
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Prioritisation results for MV grids
Table 4.4 presents the final evaluation results based on the stakeholder consultation. The list of most wanted solutions
includes three DSO solutions (the classical network reinforcement, OLTC for HV/MV transformer and network
reconfiguration), three PROSUMER solutions (un-supervised reactive power provision by PV inverters and curtailment
variants of PV power) and one INTERACTIVE solution (supervised control of PV active and reactive power). No
regulatory barriers have been identified for the DSO solutions (green colour in table). On the contrary, regulatory
barriers are present for PROSUMER solutions. (red colour in table, with exception of un-supervised reactive power
provision in Germany). In the low priority category are gathered the solutions based on electricity price signals, the
sophisticated closed loop operation and solutions less relevant to this voltage level.
Network Reinforcement
Network Reconfiguration
DSO storage
Prosumer storage
Booster Transformer
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5 PV GRID CONSORTIUM
Coordinator
WP Leaders
eclareon GmbH
Giesebrechtstraße 20
10629 Berlin - Germany
Paolo Michele Sonvilla: pms@eclareon.com
www.eclareon.com
DERLab e.V.
c/o Fraunhofer IWES
Königstor 59
34119 Kassel - Germany
Michel Vandenbergh: michel.vandenbergh@der-lab.net
www.der-lab.net
Partners
APESF
Avenida da República, n.6, 7° esquerdo
1050-191 Lisboa - Portugal
Leonor Barradas: info@apesf.pt
www.apesf.pt
36 / 40
ASSOSOLARE
Piazza Luigi di Savoia n.2
20124 Milano - Italy
Andrea Zanolla: andrea.zanolla@assosolare.org
www.assosolare.org
BPVA
2 Nikolay Haitov, Entrance G, off. 36A 2
1113 Sofia - Bulgaria
Rumen Petrov: rpetrov@bpva.org
www.bpva.org
CZEPHO
Americká 17
12000 Prague - Czech Republic
Zuzana Musilova: zuzana.musilova@czepho.cz
www.czepho.cz
edora
Allée des Artisans 26
4130 Tilff - Belgium
Frank Gerard: fgerard@edora.be
www.edora.org
ENEL Distribuzione
Via Ombrone 2
00198 Roma - Italy
Mariangela Di Napoli: mariangela.dinapoli@enel.com
www.enel.it
ENERPLAN
515 Avenue de la Tramontane, Le Forum B
13600 La Ciotat - France
Sylvain Roland: sylvain.roland@enerplan.asso.fr
www.enerplan.asso.fr
HELAPCO
Vouliagmenis Ave,224 & Ag.Dimitriou 1
173 43 Ag. Dimitrios, Athens – Greece
Stelios Psomas - info@helapco.gr
www.helapco.gr
Holland Solar
Korte Elisabethstraat 6
3511 JG Utrecht - Netherlands
Arthur de Vries - adevries@celstar.nl
www.hollandsolar.nl
Lumen
Nemanická 2722
37010 České Budějovice – Czech Republic
Martin Muller: martin.muller@lumen.cz
www.lumen.cz
37 / 40
PTPV
ul. Pralatowska 5/50
03-510 Warsaw - Poland
Stanislaw M. Pietruszko: pietruszko@pv-poland.pl
www.pv-poland.pv
PV AUSTRIA
Neustiftgasse 115 A/19
1070 Wien - Austria
Vera Liebl: office@pvaustria.at
www.pvaustria.at
RWE DEUTSCHLAND
Kruppstrasse 5
45128 Essen - Germany
Carmen Calpe: Carmen.Calpe@rwe.com
www.rwe.com
SAPI
Bajkalská 5/B
831-04 Bratislava - Slovakia
Veronika Galeková: info@sapi.sk
www.sapi.sk
Svensk solenergi
Torsgatan 12
11123 Stockholm - Sweden
Jan-Olof Dalenbäck: Jan-Olof.Dalenback@chalmers.se
www.svensksolenergi.se
UNEF
Velazquez18, 7°izquierda
28001 Madrid - Spain
Lucía Dólera: asociados@unef.es
www.unef.es
38 / 40
6 GLOSSARY
Booster Transformer is a transformer of which one winding is intended to be connected in series with a circuit in order
to alter its voltage and the other winding is an energizing winding.
Closed-Loop Operation (or Closed Ring Operation) is the method of operation where each point of a given part of a
network is fed from two sources along two distinct paths.
Electricity retailer is a company that is selling electricity to the final user.
Fast Voltage Deviations are defined as the variations that occur instantaneously in a network in case a generation plant
suddenly disconnects.
Feeder is a power line transferring power between distribution substations and consumers.
Grid connection fees are to be paid for the connection of the PV system to the grid.
Grid operator: operator of transmission or distributions grids that transmits or distributes electricity within a
designated area and co-ordinates its services with other grids.
Grid usage fees are to be paid for the use of the grid (e.g., for transport or storage of generated electricity).
Ground-mounted system: this term covers all PV systems that are installed on the ground.
Grid hosting capacity is the maximum DER penetration for which the power system operates satisfactorily.
Installed capacity is the sum of the PV modules’ rated power of a PV system. The rated power is either calculated as
sum of the nameplate capacity of the modules or the sum of the flashed power of the PV modules.
Installer: the person or company that installs the PV system.
Inverter is the device that converts direct current (DC) to alternating current (AC).
Land development plan represents the higher level in land use planning. Used for planning on town level.
Land use planning: Branch of public policy that encompasses various disciplines that seek to order and regulate the use
of land in an efficient and ethical way.
Legal-administrative barriers are barriers that are caused by regulations stemming from government bodies or grid
operators and which delay the authorisation or the installation of PV systems. This definition comprises bureaucratic
barriers but also covers barriers that stem directly from the law and not only from its application by the administration.
Listed building: a building that has been placed on a list of Buildings of Special Architectural or Historic Interest. Usually,
a listed building may not be demolished, extended or altered without permission from the local planning authority.
Maximum capacity: the highest possible output of a PV system under normal conditions.
On-Load-Tap-Changer (OLTC) is a device for changing the tapping connections of a winding, suitable for operation
while the transformer is energized or on load.
Point of common coupling (PCC) is the point on the public electricity network at which customers are connected.
Project developer: a person or company that is in charge for the planning and development of the PV project.
PV system operator: a person or company that (owns and) operates a PV system.
Rooftop system: this term covers all PV systems that are installed on or in the roof of buildings.
Slow Voltage Deviations are defined as the variations that occur in voltage during normal operation, due to the
behaviour of generation and load connected to a given network.
Static VAR Compensator (SVC) is an electrical device that provides fast-acting reactive power in an electrical network
under various system conditions.
Supervisory control and data acquisition (SCADA) usually refers to centralized systems which monitor and control
entire sites, or complexes of systems spread out over large areas (anything from an industrial plant to a nation).
Urban development plan: The lowest level in land use planning. Used for planning on local level and on parts of a town
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Reducing barriers to large-scale integration
of pv electricity into the distribution grid
info@pvgrid.eu