In order to accelerate the deployment of renewable energy and the efficient use of network capacity, the state has established a separate fee for unused generation capacity in the Electricity Market Act. Under the law, generation must start within one year if solar panels are installed, or within two years for other technologies, from the date the network operator notifies that the network connection has been completed in accordance with the generation conditions. In electricity generation, it is required to supply at least 95% of the contractual network capacity to the network.

Why is the fee applied?

The fee helps to ensure that the network resource does not remain unused for a long time and that only those who actually produce electricity have access to the network on reasonable terms. If less than 95% is supplied, the network connection user is, pursuant to law, required to pay for the unused generation capacity, which is the difference between the contractual network capacity and the actual capacity used, ie the maximum capacity supplied to the network.

When is the fee applied?

Elektrilevi will apply the fee on a calendar year basis. The initial two-year statutory monitoring period for generation-oriented connection conditions established before March 2023 will be completed in March 2025.

Elektrilevi considers the calendar years 2024 and 2025 as the initial two-year monitoring period. These are the years on the basis of which the maximum capacity supplied to the network will be reviewed, and for which the fee will be issued during the first quarter of 2026. Thereafter, maximum generation capacity will be monitored and the fee will be applied for each subsequent calendar year.

The fee for unused generation capacity is applied as an annual fee, once per year. The amount of the fee is determined by the Electricity Market Act at €38 (excluding VAT) per year for each kilowatt of unused – that is, not supplied to the network – generation capacity. Following the initial two-year monitoring period, the fee is charged at twice the annual amount.

See examples of solar energy commissioning where the allocated period for starting generation is one year. For other technologies, the allocated period for starting generation is two years.

Electricity generation commissioned before 18 March 2023

Connection of the electricity producer completed before 18 March 2023, but electricity production has not been commissioned

Connection completed as of 18 March 2023 and electricity production commissioned by the end of 2024

Connection of the electricity producer completed as of 18 March 2023, but electricity generation conditions have not been implemented

Please note that if the production conditions stipulated in the connection contract have not been implemented within three years from the completion of the connection, the network operator will not guarantee the right to use the network connection under those conditions after the three-year period, and no fee will be applied for the unused production capacity.

How is the generation capacity supplied to the network calculated?

The capacity supplied to the network is based on the quantities measured by the network operator’s meter during the measurement period, from which the average capacity for the period is calculated. The measurement period is one hour (60 minutes) until March 2025 and 15 minutes from April 2025 onwards.

The maximum capacity supplied to the network is the highest value recorded during a single measurement period within the calendar year. The electricity generation requirement is met if, during one measurement period within the calendar year, at least 95% of the network capacity has been supplied to the network.

The quantities supplied to the network can be viewed on the Elering Data Exchange Platform.

How to optimise network capacity and avoid the fee?

To optimise, we ask you to analyse the use of electricity generation equipment together with electricity consumption at the point of consumption. If the electricity generation equipment has been installed with a lower capacity than the agreed capacity for supplying to the network, and you do not plan to use the full capacity in the future, we recommend reducing the network connection capacity. The released network capacity makes it easier for other electricity producers to connect to the network.

The generation capacity supplied to the network can be reduced at any time and this is free of charge. An application must be submitted for a reduction to the e-mail address [email protected]. After the generation capacity has been reduced, the previous generation capacity may no longer be used. Any subsequent increase in the generation capacity supplied to the network must be made in accordance with the connection conditions.

The fee for unused generation capacity is issued based on the contractual generation capacity to be supplied to the network as at the end of the previous calendar year.

Frequently Asked Questions

How is the fee applied to the holder of a generation-oriented network contract?

The fee for unused generation capacity is calculated according to the monitoring period of the generating installation’s use. The periods are calculated in full calendar years. If the start of the monitoring period falls in the middle of a calendar year, the monitoring period will begin from the following calendar year.

The monitoring period begins after the deadline for starting electricity generation has passed. The initial monitoring period is two years, after which an annual fee is charged at twice the annual amount. The duration of the subsequent monitoring periods is one year, after which an annual fee is charged.

If the generating installation has been commissioned, the monitoring period begins from the start date of the initial generation-oriented network contract.

For network contracts concluded before 18 March 2023, the initial monitoring period consists of the calendar years 2024 and 2025.
For network contracts concluded after 18 March 2023, the initial monitoring period consists of the calendar years 2025 and 2026.

How is the capacity used as the basis for the fee calculated?

The fee is based on the difference between the agreed capacity to be supplied to the network (kW) and the maximum capacity supplied to the network (kW) during the period, rounded down to the nearest kilowatt.

Example: the contractual capacity to be supplied to the network is 50 kW, and the maximum capacity measured during the period is 43.3 kW. The difference – 6.7 kW of unused generation capacity – is rounded down, and the fee is charged for 6 kW.

How is the power supplied to the network during the measurement period calculated?

The meter at the point of consumption measures the amount of electricity supplied to the network in kilowatt-hours (kWh). When measuring the amount supplied to the network, the time length, that is, the measurement period, is either 60 minutes or 15 minutes. The total amount of kilowatt-hours supplied to the network during the measurement period is measured.

The calculation of power is based on the amount of electricity supplied to the network during the measurement period and the average power calculated from it.

If the measurement period is 15 minutes, the average power for the period is calculated by dividing the amount of electricity supplied to the network during that period in kilowatt-hours by a quarter of an hour (ie by 0.25).

Example: if 12 kWh of electricity was supplied to the network over a 15-minute period, then dividing this by a quarter of an hour (ie by 0.25) results in 48 kW, meaning that the average power supplied to the network during that 15-minute period is 48 kW (the same result is obtained if the amount of electricity supplied to the network during the 15-minute measurement period is multiplied by four).

If the measurement period is one hour, that is, 60 minutes, then the measured amount in kilowatt-hours is equal to the average power for the period.

Example: if 43 kWh was supplied to the network in one hour, then the average power for that hour is 43 kW (43 kilowatt-hours (kWh) divided by 1 hour (h) equals 43 kilowatts (kW)).

What if the meter does not measure a 15-minute measurement period?

In such a case, the amount of electricity measured in kilowatt-hours over 60 minutes is divided equally into four 15-minute intervals. The power supplied to the network is calculated based on the resulting 15-minute amount.

When is the 95% electricity generation requirement considered fulfilled?

The electricity generation requirement is fulfilled if, at least once a year, the average power supplied to the network during a single 15-minute measurement period reaches at least 95% of the contractually agreed generation capacity for supplying electricity to the network (ie the network capacity for supplying electricity to the network).

Elektrilevi has established the principle that, when applying the fee, unused generation capacity and the fee are to be calculated in kilowatt precision, rounded down. If the unused generation capacity is less than one kilowatt, no fee is charged in such a case.

Example: If the power to be supplied to the network is agreed as 3.6 kW in the network contract, then based on the 95% requirement, at least 3.6 kW × 0.95 = 3.42 kW must be supplied to the network during one 15-minute measurement period.

However, if the actual maximum power supplied to the network was 3.012 kW, the unused generation capacity is calculated as 3.6 – 3.012 = 0.588 kW, and when rounded down to the nearest kilowatt, the unused portion is 0 kW.

Although the power supplied to the network is below 95% in the case of such small-scale electricity generation, no fee for unused generation capacity is charged for this.

Do I have to pay the unused generation capacity fee if, during the initial two-year monitoring period, I met the generation requirement in one year but did not meet it in the other?

In that case, the unused generation capacity fee does not have to be paid. During the initial two-year monitoring period, the maximum generation capacity supplied to the grid over the entire two-year period is taken into account.

When does the new party to the connection start paying?

Under the generation condition, solar panels must be commissioned within one year, and other technologies within two years, after the fulfilment of the connection contract. We will send the party to the connection contract a notification confirming the fulfilment of the connection contract.

Example for solar panels:

If the connection was completed in 2025, then 2026 is the commissioning year, ie the generation start period. The years 2027–2028 constitute the monitoring period, and the fee will be issued in 2029.

Example for other technologies:

If the connection was completed in 2025, then 2026–2027 are the commissioning years, ie the generation start period. The years 2028–2029 constitute the monitoring period, and the fee will be issued in 2030.

Who pays the fee if the network contract holder changes?

The fee is charged based on the point of consumption and is issued to the holder of the valid network contract at the time the invoice is issued.

How is the fee applied if the generation condition has not been implemented under a network contract?

The fee for unused generation capacity is based on the generation capacity to be supplied to the network, as agreed in the connection contract.
If, after the fulfilment of the connection contract, no network contract has been concluded for the point of consumption for the use of network services (ie there is neither a network contract under consumption conditions nor under generation conditions), the fee will be charged to the connection party.
If the registered immovable has been transferred or the connection party’s authorisation to use the registered immovable has expired, the fee for unused generation capacity will be applied to the owner of the registered immovable at the time the fee is issued.
If a network contract under consumption conditions has been concluded for the network connection, and no agreement on generation conditions has been included in the contract, the fee will be charged to the buyer who is the party to the consumption-conditions-based network contract at the time the fee is issued.

Who pays the fee if there is no valid network contract?

If no network contract has been concluded after the completion of the connection, the fee is charged to the party who signed the connection contract. If the property has been sold, the fee must be paid by the new owner of the property.
If there is no network contract, the owner of the registered immovable must pay the fee.
If a valid network contract is terminated, the owner of the property must pay the fee.