TEPCO applies new rule to grid connection applications

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Tokyo Electric Power Co Inc (TEPCO) will start to accept applications from power producers that hope to connect their power generation facilities to power grids in three areas from this month.

The three areas are the northwestern area of Yamanashi Prefecture and the midwestern and southern areas of Chiba Prefecture.

In those areas, there are many power producers that are willing to connect their facilities to a power grid. As a result, major construction works such as partial rebuilding of transmission line towers and replacement of transmission lines are required. And grid connection on the premise of costs born by a single power producer is difficult.

The process for taking applications for power supply connection is a rule for calling for nearby power plants that want to collaboratively make a contribution in aid of construction to have their facilities connected to a power grid. It was established by the Organization for Cross-regional Coordination of Transmission Operators (OCCTO), which was launched in April 2015.

In regard to the allocation of costs, guidelines that the Agency of Natural Resources and Energy announced in July 2015 (new cost allocation rule) are applied, separating “specific burden,” which power producers bear, from “general burden,” which is covered by the consignation fee. Conventionally, for grid connection of renewable energy-based power generation facilities, all of the costs are a specific burden in principle. Therefore, with the new rule, the burden born by power producers (contribution in aid of construction) is likely to decrease.