Grid connection is a critical moment that can determine the success or failure of an energy project. The operator’s decision decides whether a new solar farm, energy storage facility, or wind power plant will be able to deliver electricity to consumers. Unfortunately, more and more investors face administrative barriers, long queues for approvals, and a lack of transparency in the process.

What are the most common obstacles? Why do some projects get the green light while others are rejected, even if they meet technical requirements? In this article, we explore the biggest challenges of grid connection and present modern solutions that can streamline the process.

You will learn:
✔ Why the current capacity reservation system is inefficient,
✔ What mistakes investors make when submitting applications,
✔ How new technologies and regulatory changes can accelerate the grid connection process.

Reading time: 3 minutes – just enough to gain a clearer understanding of the mechanisms shaping the future of the energy transition.

1. Lack of unified evaluation criteria – the grid connection lottery

Imagine two identical projects—both have the same capacity, are located in similar areas, and use the same technology. One receives grid connection approval within a few months, while the other is rejected. Why? Because evaluation criteria can vary between different regions and grid operators.

In practice, this means that available grid capacity is not always allocated according to transparent and uniform rules. Applications are reviewed individually, but not necessarily based on the same guidelines. As a result, some projects gain priority even if they are not the most optimal solution for the system. This creates a situation where potentially critical investments may be overlooked or denied, despite meeting all technical requirements.

2. Blocking available capacity with non-viable projects – reserved but unused

Think about how many times you've reserved a table at a restaurant but never showed up. For you, it’s just a minor inconvenience, but for the restaurant, it means lost revenue and an empty table that could have been used by another customer. The same problem exists in the energy sector.

Some companies submit grid connection applications to "secure" access to the network, even if they are unsure whether they will proceed with the project. By doing so, they reserve grid capacity that could be used for other, more advanced investments. Since many grid operators do not have strict verification processes at early project stages, the network ends up blocked by "ghost" projects that may never materialize.

The issue is further exacerbated in countries where connection fees or deposits are low, allowing investors to submit multiple applications without significant financial risk. As a result, viable projects ready for execution are stuck in a long queue while available capacity is occupied by projects that will never move forward.

3. Long processing times – years in the waiting room

You walk into a government office and see dozens of people ahead of you in line. You’ll probably spend an hour, maybe two, waiting. Now, imagine that this queue represents the grid connection process, but instead of a few hours, the wait lasts several years.

Grid operators have limited resources and must review massive amounts of documentation—applications, project plans, and network impact assessments. Each project requires detailed evaluation, and at the same time, the number of applications is growing exponentially. As a result, the decision-making process doesn’t take months—it can take years.

To make matters worse, many applications are submitted “just in case.” Investors often apply to check whether they have a chance of securing a grid connection, without necessarily planning immediate implementation. This clogs the system even further, as operators must also process applications that will never move beyond the planning stage.

4. Limited transparency in the process – investors left in the dark

Imagine being handed a complex puzzle to solve, but no one tells you the rules. This is exactly what the grid connection process feels like for many investors.

A lack of clear information about which projects have already been approved, how much capacity is still available, and which applications are in the queue leaves investors operating in uncertainty. In many cases, they wait months—only to find out that there is no remaining grid capacity in their region.

The absence of publicly accessible lists of approved connections means that decisions are made under conditions of limited market visibility. Greater transparency in this area could significantly streamline the investment process, reduce waiting times, and improve the efficiency of capacity allocation in the system.

Modern solutions in the grid connection process – how to accelerate and optimize the energy transition?

Anyone who has ever submitted a grid connection application knows that the process can be long, complex, and full of uncertainties. However, many countries are implementing innovative solutions aimed at speeding up this process and making better use of existing infrastructure. These advancements enable investors to execute their projects faster and more efficiently while allowing grid operators to manage available resources more effectively.

1. Publishing information on connection conditions and signed agreements – no more operating in the dark

Imagine wanting to buy a plane ticket, but the airline doesn’t tell you whether seats are still available. You have to fill out a request, wait weeks for a response, and only then find out that all tickets are sold out. Sounds absurd? Yet, this is exactly how the grid connection process works in many parts of the world.

To address this issue, new regulations are being introduced to ensure public access to key information, including:
✔ Connection conditions for specific areas,
✔ Signed grid connection agreements,
✔ Allocated and available grid capacity.

With this transparency, investors no longer have to operate in uncertainty. They can check in advance whether they have a chance to connect their facility to the grid, and if not, they can seek alternative locations.

2. Expanding access to application data at different processing stages – reducing bottlenecks

Remember those visits to government offices where you had no idea how many people were ahead of you in line, and all the staff would say was, “Please wait”? The lack of status updates is frustrating and inefficient.

The grid connection process often feels the same—investors are left in the dark, unsure about the stage of their application or when they can expect a decision. To tackle this issue, new systems are being introduced that allow:
✔ Real-time tracking of application status,
✔ Access to lists of applications under review and those still in the queue,
✔ Transparency in rejection decisions and their justifications.

These improvements make the process more predictable, enabling companies to plan their actions more effectively and estimate realistic project timelines.

3. Implementing the "cable pooling" model – more energy, fewer constraints

Imagine several people traveling the same route, but instead of sharing one larger vehicle, each person buys their own car. The result? Unnecessary costs, increased fuel consumption, and traffic congestion.

A similar issue occurs in the energy sector, where each renewable energy project often requires a separate grid connection, even when located near other installations. This leads to excessive infrastructure strain and higher investment costs.

The solution to this problem is cable pooling, which allows multiple renewable energy projects—such as wind and solar farms—to share the same grid connection point and transmission line.

The benefits?

✔ Better utilization of existing infrastructure – instead of building new lines, available resources are optimized,
✔ Lower costs – shared infrastructure reduces expenses for investors,
✔ Shorter connection times – fewer administrative hurdles lead to faster project implementation.

Cable pooling is a step toward a more efficient energy system, enabling a greater share of renewables in the energy mix without the need for expensive grid expansion.

4. Auction-based grid connection model for renewables and energy storage – a new era of capacity allocation

Imagine you want to buy an apartment, but instead of submitting an application and waiting for approval, you participate in an auction where the highest bid wins. A similar approach in the grid connection process could significantly streamline the entire system.

In the traditional connection model, each applicant submits an individual request, and decisions are made based on the order of submission and available capacity. The problem is that this method often leads to inefficient resource allocation—investors submit applications just in case, blocking capacity they may never use.

The auction-based connection model works differently:
✔ Grid operators define how much capacity is available in a given area and under what conditions,
✔ Applicants compete in a bidding process for the right to connect,
✔ Auction winners sign grid connection agreements, ensuring that the allocated capacity is actually utilized.

Benefits

✔ Faster process – instead of waiting months for a decision, investors quickly know if they have secured capacity,
✔ Better resource allocation – eliminating speculative applications and maximizing the use of available connections,
✔ Funding for grid expansion – auction revenues can be reinvested in infrastructure upgrades, reducing costs for all users.

The auction-based grid connection model has the potential to revolutionize how new energy projects, especially in the renewable sector, are developed.

A modern approach to grid connections is the key to success

Changes in the connection process aim to streamline energy sector development and ensure better use of available resources. Solutions such as:
✔ Public access to grid connection conditions,
✔ Transparency in application status,
✔ Cable pooling – shared infrastructure use,
✔ Auction-based capacity allocation,

are making the energy sector more predictable, efficient, and adaptable to the evolving energy mix.

Are these solutions enough? That depends on how effectively they are implemented and on collaboration between grid operators, regulators, and investors. One thing is certain—without these improvements, the pace of the energy transition may slow down, and the full potential of renewables and energy storage may remain untapped.

New grid connection management models – how to avoid capacity blockage and improve the network?

Imagine a world where every parking space reservation comes with an obligation to actually use it. If you don’t park your car within the designated time, the system automatically releases the spot for someone else. This is the approach increasingly being implemented in power grids, ensuring that allocated grid capacity does not remain unused for years.

To improve connection management efficiency and prevent capacity from being blocked by non-viable projects, grid operators are introducing innovative control and optimization mechanisms. The goal is to create a flexible system where genuinely active projects take priority, and available grid infrastructure is used efficiently.

1. The milestone system – is your project real?

In the traditional model, investors could reserve grid capacity without being required to start construction. As a result, infrastructure remained blocked for years, often with no real progress on the investor's side. This meant that genuinely ready projects had to wait because capacity was already reserved by projects that never materialized.

A modern solution to this issue is the milestone system. How does it work?

• Once capacity is allocated, investors must demonstrate progress within set deadlines, such as obtaining construction permits, starting site work, or purchasing key components.

• If the project fails to meet these milestones within the required time, its reserved capacity is automatically released and reassigned to another investor.

• This mechanism prevents speculative reservations and ensures that only projects moving forward receive a grid connection guarantee.

For example, if a company plans to build a wind farm and reserves 200 MW of capacity but takes no concrete steps for two years, the milestone system cancels the reservation and reallocates it to another investor.

The result?

✔ Faster project execution,
✔ No more capacity being blocked by speculative investments,
✔ A more efficient and dynamic energy grid.

2. Transfer of grid connection agreements – flexibility in network management

Imagine a developer securing grid connection terms, but their project runs into difficulties—lack of funding, administrative hurdles, or a shift in company strategy. What happens next?

Until recently, there was only one outcome—the project stalled, and the allocated capacity remained unused. However, more and more grid operators are now introducing mechanisms that allow grid connection agreements to be transferred.

What does this mean in practice?

• An investor can sell or transfer their agreement to another company that is ready to move forward with the project more quickly.

• The system enables dynamic capacity management—if one entity cannot utilize its grid connection, another can take its place.

• Transfers often come with a fee, which helps prevent speculation and misuse of reserved grid capacity.

Thanks to this approach, grid operators can respond faster to market changes, and viable projects no longer have to wait for years just because someone else has secured capacity they don’t intend to use.

3. Integration with digital tools – real-time decision-making

Can grid connections be managed as efficiently as modern e-commerce logistics systems handle deliveries? The answer is yes—and an increasing number of grid operators are adopting digital tools that enable real-time analysis and decision-making.

In the traditional model, grid connection requests were reviewed based on paper documentation and manual assessments by specialists. This process could take months or even years, especially when thousands of applications were pending.

With the integration of advanced analytics and artificial intelligence (AI) into power systems, it is now possible to:

• Instantly check available capacity based on real-time grid data,

• Dynamically prioritize projects based on their progress and impact on grid stability,

• Automatically detect inactive reservations and free up capacity for new investments.

It works like an airline booking system—if a ticket isn’t used, the seat is released to the next passenger. By digitizing the grid connection process, a similar model can be introduced to enhance network efficiency and transparency.

The future of the energy sector – are we ready for change?

Modern grid connection management models are key to the efficient development of power systems. Mechanisms such as:
✔ The milestone system, which eliminates inactive capacity reservations,
✔ Transfer of grid connection agreements, allowing for dynamic capacity management,
✔ Digital analytics tools, accelerating decision-making processes,

are making grid connection procedures more fair, efficient, and adapted to the challenges of the energy transition.

Will these changes be enough? That depends on how widely they are implemented and whether regulations evolve to support them. One thing is clear—without optimizing the grid connection process, the expansion of renewable energy and the stability of power systems could be at risk.

In the coming years, we will see which countries and regions successfully navigate these challenges and introduce connection models that enable a seamless transition to a more sustainable energy future.

How to avoid grid connection rejection? Here’s what you can do to prevent the 5 most common mistakes

Not every application ends in success. The transmission system operator (TSO) may reject a request if it does not meet key requirements. Here are the most frequent reasons for rejection—and how to avoid them:

❌ 1. Lack of available connection capacity
If the local energy infrastructure is overloaded, the TSO may deny the request, especially in areas with a high concentration of new renewable energy sources.
🔹 How to avoid this?
→ Conduct a preliminary analysis of available capacity and consult with the TSO early in the planning phase to assess feasibility.

❌ 2. Incomplete documentation
Errors in application forms or missing required attachments are among the most common reasons for rejection.
🔹 How to avoid this?
→ Before submitting, double-check that all required elements are included. If unsure, consult a grid connection specialist.

❌ 3. Non-compliance with technical standards
Facilities that fail to meet grid standards (e.g., power quality issues, lack of proper protection systems) will not be connected.
🔹 How to avoid this?
→ Ensure that installations comply with TSO regulations and invest in stabilization systems to meet grid requirements.

❌ 4. Missing environmental and administrative permits
For instance, planning a renewable energy project in a protected area without securing the necessary approvals will result in an automatic rejection.
🔹 How to avoid this?
→ Secure all required permits and approvals before submitting the grid connection application.

❌ 5. No justification for transmission grid connection
Not every project requires direct connection to the transmission grid—many can be connected at the distribution level.
🔹 How to avoid this?
→ Evaluate whether a transmission grid connection is necessary, or if a distribution system operator (DSO) connection would be a more suitable solution.

Thorough planning and compliance are key to success. A well-prepared application minimizes the risk of rejection and speeds up the connection process.

If you want to learn more about optimizing grid connection procedures or consult your project with experts, contact the Energeks team—we’ll help you find the best solution for your investment.

Sources:

PSE S.A.