In the field of renewable energies, companies need to face assembly and manufacturing costs that increase the total cost of connecting a plant to the grid. For this reason, the Administration requests financial guarantees to carry out the projects, as a way of guaranteeing that the company has sufficient economic resources to develop them.
We highlight two types of guarantees:
- Connection Point Guarantees or Grid Connection Guarantees
- Decommissioning Guarantees
The Administration allows these financial guarantees to be presented in the form of surety insurance.
Guarantees for Connection Points
In order to have access and connection to the electricity transmission and distribution networks, a connection point guarantee or grid connection guarantee must be submitted to the administration. This is a prerequisite for applying for authorisation to subsequently operate energy distribution.
Once the grid connection point has been built and the final operating permit has been obtained, the guarantee may be requested to be returned.
The amount of the guarantee depends on the power to be installed. Surety insurance is one of the ways in which the company can provide point-of-connection guarantees.
These are guarantees required by the public sector from companies that install solar photovoltaic plants or wind farms in order to guarantee the restoration of the land on which they are located once their use has ended. These are guarantees to ensure the decommissioning of the renewable energy plant so that the land is returned to its original state.