Refusal to connect to the grid – what rights does the investor have?

One of the biggest challenges currently faced by investors planning to build renewable energy installations is obtaining connection conditions to the electricity grid. The dynamic development of the renewable energy market in recent years has led to the connection capabilities of many distribution networks being largely exhausted. As a result, electricity system operators increasingly refuse to issue connection conditions, citing a lack of technical or economic feasibility for the investment.

But is every refusal legal? What rights does the investor have, and is there a possibility to challenge the operator’s position? Answers to these questions are crucial for the success of many renewable energy projects.

Public law obligation to connect to the grid

Entrepreneurs often assume that the decision to connect an investment depends solely on the distribution system operator. However, this is not a discretionary decision.

According to Article 7, paragraph 1 of the Energy Law, energy companies engaged in the transmission or distribution of energy have a public law obligation to conclude a connection agreement if the conditions specified in the law are met. This obligation applies not only to energy consumers but also to investors implementing renewable energy installations.

When can the operator refuse to connect to the grid?

Energy law stipulates that an energy company can refuse to conclude a connection agreement only when the statutory conditions have not been met. This means that a refusal will be legal only if:

• there are no technical or economic conditions for connection to the grid,
• the investor does not meet the connection conditions specified in the regulations,
• the investor does not have the appropriate legal title to the property on which the investment is to be realized.

If the indicated conditions have been met, the operator is generally obliged to conclude a connection agreement with the investor.

In practice, the most common reason for refusal is citing a lack of technical possibilities for connection due to insufficient network capacity or a lack of available connection power. However, merely indicating such circumstances does not automatically mean that the refusal was issued in accordance with the regulations.

The operator must justify the refusal

The refusal to issue connection conditions cannot be limited to a terse statement that connection is not possible.

Electricity system operators have an obligation to apply objective and transparent principles to all network users. Consequently, every refusal should include a detailed justification indicating why there are no technical or economic conditions for connection in the specific case.

Importantly, according to established case law, the burden of proof lies with the energy company to demonstrate that the conditions justifying the refusal actually exist. The operator should present the investor with arguments that allow them to verify the reasoning and assess whether the refusal was issued in accordance with the provisions of the Energy Law.

If the justification is general or does not explain the actual reasons for the refusal, the investor has the right to challenge such a position.

Can the refusal be challenged?

Yes. The refusal to issue connection conditions does not close the investor’s path to project realization.

The first step should be to conduct a detailed analysis of the documentation, including the content of the refusal, technical conditions, and documents related to the planned investment. Often, at this stage, it is possible to determine whether the operator correctly applied the provisions of the Energy Law and whether the justification provided corresponds to the actual state of the network.

If the investor believes that the refusal was issued in violation of the regulations, they may use the legal remedies provided by law. In particular, disputes regarding the refusal to conclude a connection agreement are resolved by the President of the Energy Regulatory Office.

However, each case requires individual assessment, as the analysis of the legitimacy of the refusal includes both legal and technical issues.

How to reduce the risk of refusal?

The risk of refusal to connect can often be reduced even before submitting the application.

Before starting the procedure, it is worth verifying primarily:

• the technical possibilities of the planned connection point,
• the amount of available power published by the respective operator,
• the possibility of using the cable pooling solution,
• the compliance of the investment with planning documents,
• the completeness of the documentation submitted to the operator.

Proper project preparation increases the chances of obtaining connection conditions and reduces the risk of multi-month delays in the investment.

Summary

The refusal to issue connection conditions does not automatically mean that the investment cannot be realized. Electricity system operators are bound by obligations arising from the Energy Law and cannot arbitrarily refuse connection to the grid. Every refusal should be detailed, and the burden of proving the lack of technical or economic conditions for connection lies with the energy company.

If you have received a refusal to issue connection conditions or are planning to implement an investment in renewable energy sources, it is advisable to conduct a legal analysis of the planned project at the preparation stage. Our law firm supports investors and entrepreneurs at every stage of the connection process – from documentation analysis and assessment of the legitimacy of the refusal, through the preparation of letters and representation before the President of the Energy Regulatory Office, to comprehensive legal service for renewable energy investments.