Grid H&C - Connection, Use, and Development

The grid connection is a bilateral agreement between the heating generator operator and the district heating operator. It is not regulated by any heating-special laws but relevant legislation from Energy Market Act and Energy Efficiency Act. The most relevant legislation in these Acts regarding heating and cooling are the connection of energy efficient combined heat and power production (CHP) to the grid and the obligation to offer the network services in a fair and non-discriminatory manner.

The grid operates under the non-discrimination criteria guaranteeing access to all forms of production. Access cannot be limited on technological bases, but the grid capacity can limit access.

A heating contract is a private law agreement between the heat supplier and the customer. However, often the electricity and heat supplier are the same company, in which case the provisions of the Electricity Market Act regarding contracts apply to this agreement. If the heat producer is different from the electricity producer and the Electricity Market Act does not apply, then the provisions of the Consumer Protection Act are followed if the contracting party is an individual, or the provisions of the Sale of Goods Act are followed if the contracting party is a housing association, or another entity considered a business. Competition law provisions apply in both cases. 

Heating and cooling (H&C) grid development is part of the broader energy transition, with a focus on increasing energy efficiency and integrating renewable energy sources (RES). The current share of renewables in heat production is 60% and the with existing measures (WEM) in updated NACP 2024 project that share will rise to 74% by 2030. This naturally needs grid development. Smart district heating networks with thermal storages could increase efficiency of energy distribution and integrate renewable resources more effectively. These kinds of projects can be eligible for Energy Aid as new energy technologies but without binding regulation for grid development it is up the grid operators how the grid is developed.

Energiavirasto (Energy Authority)