On behalf of the Norwegian Energy Regulatory Authority (RME), Menon Economics and Multiconsult have assessed the socio-economic costs of customers not receiving grid connection when required. The study also evaluates mechanisms that could incentivise grid companies to streamline and improve current connection processes.

The report provides a review of several methods to estimate the true economic cost of delayed grid access, including approaches based on grid connection costs, as well as project-specific and industry-specific data. These methods vary in both their accuracy and their suitability for practical application.

After weighing the advantages and limitations of each, the study recommends a model based on the estimated costs of grid access for businesses. This is interpreted as a conservative proxy for the minimum willingness to pay for timely grid connection. While it does not capture the full societal cost, the model offers several benefits: it is straightforward to implement, easy for market participants to understand, and falls within the control of grid companies.

When applied to Statnett’s current capacity queue, the model estimates that delayed grid access results in economic losses exceeding NOK 300 million per year. These costs could, in principle, be passed on to grid companies as part of a revised incentive structure. However, before the method can be used in regulation, further work is needed to ensure that the underlying data is regularly updated — and that a clear, consistent, and transparent definition of “waiting time” is established across the sector.

The entire report in Norwegian with executive summary in English is available here.