Spain´s flexible electricity demand access permits

The National Commission on Markets and Competition (CNMC) has launched a public consultation that runs until 20 March on a proposed resolution that would establish flexible-demand access permits for Spain's electricity transmission and distribution networks.

Flexible access capacity is capacity for which supply is not guaranteed at all times of the year. It arises where a network capacity analysis finds specific criteria for access are not met, making it impossible in these cases to grant firm access capacity (the only type of access currently available).

In practice, this means that flexible demand will allow facilities – mainly large consumers and storage systems – that cannot obtain firm access permits with full supply guarantees to connect to the grid in exchange for accepting certain restrictions.

The proposed resolution creates four types of flexible access permits.

Type 0

Defined by patterns, type 0 applies where the demand connection point is located on the distribution network. The percentage of energy consumption hours associated with flexible capacity corresponds to the daily pattern derived from the capacity analysis carried out by the network operator.

In practice, the consumer will only be able to take energy from the grid during predetermined time slots. Type 0.1 permission, for example, allows consumption from 0:00 to 7:59 and from 11:00 to 17:59. 

Type 1

Covering remote disconnection due to N-1 unavailability, type 1 applies where the demand connection point is on the distribution network at a voltage greater than 36 kilovolts (kV), and the capacity study concludes that the firm access requirements are met under conditions of total network availability, but not under conditions of unavailability of any element in the connection substation (N-1). 

The estimated number of hours in which the safety criteria will not be met would be limited to 10% of annual hours, so the installation can expect to be able to draw power for at least 90% of the year. This is not a supply guarantee.

Type 2

Type 2 covers active management through instructions. The demand connection point is located on the distribution network with a voltage greater than 36 kV and the associated power is greater than 1 megawatt (MW).

Unlike type 1, this permit allows the distribution network operator not only to disconnect but also to send instructions to partially limit the power of the installation. The installation must comply with the instruction sent in real time on a preventive basis in less than 30 minutes, and on a corrective basis immediately or in less than 3 minutes.

The estimated number of hours during which the safety criteria will not be met is also limited to 10% of the hours in the year, so the installation can expect to consume at least 90% of the hours in the year. This expectation should not be understood as a guarantee of supply.

Type 3

Type 3 covers the transmission network, where the demand connection point is located on the transmission network with a voltage greater than 36 kV and the associated power is greater than 1 MW.

This type applies when the access study concludes that there is a high probability that the firm access requirements will be met under conditions of full availability, but not under conditions of unavailability or failure of any element of the transmission network.

Consumer facilities granted this type 3 flexible access permit must be enabled in the automatic power reduction system (SRAP), for which they must comply with the corresponding operating procedures (PO) and technical requirements, as well as pass the enabling tests established in P.O. 3.11. 

Consumer exclusions

Certain categories of consumers are excluded from obtaining flexible permits. Specifically, the following may not apply for or obtain flexible access capacity:

• Collective projects such as urban and industrial plans with an obligation to maintain certain electrification levels.
• Supplies declared as essential (article 52 of Law 24/2013, of 26 December, on the electricity sector).
• Facilities with complementary security supplies supplementing the normal supply.
• Consumption facilities that cannot be without grid supply for more than 24 continuous hours.

Validity and implementation schedule

Although the proposed resolution establishes will take effect from the date of its publication in the Official State Gazette, it sets out a phased implementation schedule.

Type 0 flexible access permits may be requested within six  months of the resolution taking effect.

Distribution network operators must have the analysis and operational tools needed for preventive or corrective disconnection and the issuance of instructions in place to enable the implementation of flexible access permits before 1 January 2028.

Until 1 January 2029, type 3 access permits may only be requested when the connection point to the transmission network is a position dedicated exclusively to that consumer and operated by the transmission network operator.

Distribution system operators and the system operator must establish the necessary information exchange mechanisms and, within six months of the resolution taking effect, must submit a proposed operating procedure to the CNMC. 

Regulatory changes

To adapt the system to this new type of demand capacity, the proposed resolution annexes a new distribution operating procedure – POD1 – establishing the criteria for the functioning and operation of flexibility in the distribution network, as well as modifications to several POs: specifically, .PO3.1, OP3.2, OP3.11 and OP14.4 and to the CNMC resolution of 13 November 2019, which approved the specifications for the national implementation of the methodology provided for in article 40.6 of Regulation (EU) 2017/1485.

Osborne Clarke comment

Flexible capacity represents a significant step forward in modernising access to the electricity grid in Spain. It would allow large consumers – especially energy storage facilities and flexible industrial demand – to connect to the grid in areas with limited capacity, in exchange for accepting operational restrictions managed by distributors and the system operator. It is a key tool for facilitating the integration of renewable energies and optimising the use of existing electricity infrastructure.