A biogas plant is an installation that, through the cogeneration process, can produce both electrical and thermal energy, providing an additional source of revenue for the investor. However, the ability to supply heat to consumers requires the installation to be connected to the heating network.
Connection to the heating network is a stage in the investment and construction process consisting of the following elements:
📑 Obtaining connection conditions from the heating network operator
✍️ Signing a connection agreement
🤝 Signing a distribution and heat sales agreemen
1. Conditions for Connecting to the Heating Network 🌡️
Connection conditions to the heating network are a type of document issued by the distribution or transmission system operator that specifies the technical details related to connecting a biogas installation. This document commits the operator to signing a connection agreement with the investor, based on which the installation will be connected to the network. The connection conditions thus allow for a “temporary reservation of a place in the network” for the biogas project.
If the producer does not conclude a connection agreement within 24 months, the connection conditions become void.
Elements of the Application for Issuing Connection Conditions 📄
The application for issuing connection conditions is submitted to the heating system operator, who owns the network to which the investor intends to connect. The application consists of the following elements:
📍 Identification of the applicant along with their address
📝 The content of the request, i.e., the issuance of connection conditions for a specific biogas installation project
💧 Specification of the type and achievable parameters of the heat carrier, including pressure and temperature, as well as the physicochemical properties of the heat carrier supplied to the heating network and allowable impurities of the heat carrier returning from this network to the heat source
🔥 Specification of the maximum and minimum thermal power that can be supplied from the heat source to the heating network, and if this power is to be achieved in stages – a schedule for achieving these stages and the power for each stage
⚙️ Specification of the technical characteristics of the heat sources, including data for subsequent development stages of the source (technological system of the heat source, efficiency of heat-generating devices, regulation system for the amount of heat supplied to the heating network, and characteristics of devices used to measure the quantity and parameters of the heat carrier supplied from the heat sources to the heating network, maximum and minimum efficiency of the water treatment installation provided to the heating company or heat distributor for filling the heating network and receiver installations, and supplementing heat carrier losses)
📅 Indication of the proposed start date for heat delivery and the conditions for its delivery
📜 Document confirming legal title to use the facility
🗺️ Development plan or situational sketch, specifying the location of the facility relative to the existing heating network and other infrastructure
🔍 Assessment of the impact of the connected source on the functioning conditions of the heating system
Procedure 🚀
After submitting the application for issuing connection conditions, the operator analyzes whether there are technical and economic possibilities for connecting the production unit. The processing time for the application is 3 months. In case of refusal to issue the connection conditions, the investor has the right to appeal to the President of the Energy Regulatory Office (URE), who can oblige the operator to conclude a connection agreement.
The connection conditions are valid for 2 years from the date of their delivery. During this validity period, the conditions constitute a conditional obligation for the energy company engaged in the transmission or distribution of heat to conclude a connection agreement.
2. Connection Agreement 📑
The connection agreement is the legal basis for connecting the biogas installation to the heating network. It is a contract between the heating system operator and the investor, which commits both parties to perform the necessary connection works for the production source, in accordance with the technical specifications defined in the connection conditions.
The fundamental element of the connection agreement is the operator’s execution of local heating network modifications and the connection to enable the acceptance of energy generated in the installation. The primary obligation of the producer is to build the production source and collaborate with the operator in performing the connection tasks.
Connection Costs 💰
The connection agreement also specifies the method of settling the costs of connection works. The connection cost is determined based on the actual expenses incurred by the energy company for the connection. An exception is made for biogas plants functioning as cogeneration units with an installed electrical capacity above 1 MW, where half of the fee determined by the actual expenses is charged.
3. Obligation to Purchase Heat 🔄
A significant facilitation for the investor is the obligation to purchase heat produced in a renewable energy installation, as described in Article 116 of the Act on Renewable Energy Sources. This obligation applies unless an efficient heating system, as defined in Article 7b, paragraph 4 of the Energy Law, operates throughout the area of the heating network.
The obligation to purchase heat is fulfilled by the company involved in heat trading or heat production and its sale to end consumers within the area of the heating network. Thanks to this obligation, an investor producing heat in a biogas installation does not have to find a buyer for the heat independently. Although the investor can sell the heat to another entity of their choice, the obligation ensures a guaranteed buyer from the heating company.
Summary 🌟
Biogas plants, by producing thermal energy, can generate additional revenue. To supply heat to consumers, the installation must be connected to the heating network, requiring the fulfillment of connection conditions, signing of a connection agreement, and a distribution and sales agreement. This process involves several key steps, from obtaining connection conditions, submitting applications, to performing connection works and signing agreements. An added benefit for investors is the obligation for heating companies to purchase heat, eliminating the need for the investor to find buyers independently.
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