Any extension or modernisation of electricity infrastructure is a complex process - not only in terms of design and execution, but also in terms of formal and legal issues. The stage of obtaining approvals, decisions, arrangements and opinions for investments involving the construction of electricity networks is often the most difficult one today. What does the implementation of such projects look like in practice?
When making an investment in electrical infrastructure, one has to take into account numerous legal conditions and comply with many requirements resulting from the applicable laws and regulations. Even a smooth implementation of the formal and legal stage of the project usually takes many months. Under unfavourable circumstances, it can even take several years. Time is significantly extended by arrangements at various levels, waiting for the necessary decisions, permits and opinions necessary for the implementation of the project.
The construction of the electricity network is affected by, inter alia, the provisions on spatial planning and development, real estate management, regulations related to environmental protection, as well as construction law and provisions of other laws. In addition, the construction, extension or modernisation of electricity infrastructure - especially in the case of power lines - does not usually cover a single administrative unit, but extends to more municipalities, districts or even provinces. As a result, the majority of similar formalities have to be dealt with separately in each of these units, which makes the whole process more difficult and lengthy.
Currently, the process of construction of the highest voltage electricity network - managed by Polskie Sieci Elektroenergetyczne SA - is supposed to be streamlined and accelerated by the so-called transmission spec-law (Act of 24 July 2015 on the preparation and implementation of strategic investments in transmission networks). However, there are no similar solutions that would make it easier for electricity companies to carry out investments in substations and lines belonging to distribution system operators.
Investing in electrical infrastructure - step by step formalities
400 kV substation in Stanisławów, designed by Eltel Networks Engineering SA and built by Eltel Networks Energetyka SA.
Let's take a look at the formal and legal process on the example of construction of the Stanisławów 400 kV substation, which is in the portfolio of Eltel Networks Energetyka SA.
The construction of the Stanisławów substation took place between 2012 and 2016.
- The formal and legal process began with the selection of the contractor in a bidding conducted by PSE Operator SA.
- Subsequently, a contract for electrical services was signed between the investor and the contractor - Eltel Networks Energetyka SA.
- The project contractor had to obtain a decision on environmental conditions for the area on which the substation and the line outlets were to be located. This was an important stage in the whole process, as the substations were then indicated on the list of projects likely to have a significant impact on the environment. The investor obtained the decision on environmental conditions in the last quarter of 2012.
Such a document is issued by an entity which controls investment processes in a given area from the point of view of nature protection and assesses the potential environmental impact of a given project. Depending on the scale of the investment, it is the competent Regional Director for Environmental Protection or the mayor.
Currently - after the Council of Ministers adopted a new regulation on projects likely to have a significant impact on the environment on 10 September 2019 - it is not necessary to obtain a so-called environmental decision for substations.
However, this obligation still applies to:
- overhead power lines with a voltage of 220 kV or more and a length of 15 km or more, which are classified as the projects that may always have significant impact on the environment
- and other overhead power lines with a voltage of at least 110 kV - which are classified as the projects likely to have a potential significant impact on the environment. - The next step for the Stanisławów substation was to have the project included in the relevant Local Spatial Development Plan (LSDP). This was tantamount to the Stanisławów Commune Council adopting a resolution indicating the designation of a selected area (originally agricultural land) for a specific investment purpose, i.e. construction of a substation. Stanisławów Commune Council adopted the LSDP in April 2013. It is worth mentioning at this point that an alternative to the usually time-consuming execution of investments in the local zoning plan can be another - theoretically much faster - formal and legal path, namely establishing the location of a public purpose investment, which is the responsibility of the voyt, mayor or city president. The choice of route depends, among other things, on whether the administrative unit in question has an LSDP and what kind of lands are within the project area. Where the land is of high agricultural category (1 to 3), the electricity investment must be included in the Local Spatial Development Plan. If, on the other hand, the land in question is classified as being of a lower category, the option of establishing a public purpose investment location is sufficient.
Currently - as part of investments in the transmission infrastructure of Polskie Sieci Elektroenergetyczne SA - it is also possible to obtain a decision on determining the location of a strategic investment in the transmission network under the provisions of the Act of 24 July 2015 on the preparation and implementation of strategic investments in transmission networks.
- It was then necessary to deal with the question of the acquisition of real property rights for the land on which the Stanisławów substation was to be built.
This was preceded by a geodetic subdivision of the property and later a transfer of ownership of the subdivided plots.
A limited right in rem in the form of a transmission easement is acquired for electricity lines. It allows the contractor/owner of an electricity project to dispose of the property for construction purposes and to use transmission facilities located on a plot of land which is not his property. The transmission easement shall be governed by agreement between the parties.
An alternative to obtaining a legal title to the real estate is to obtain an appropriate administrative decision based on the provisions of the Real Estate Management Act.
Currently - as part of investments in power infrastructure managed by PSE SA - it is also possible to obtain an administrative decision resulting in expropriation or restriction of the use of real estate under the provisions of the Act of 24 July 2015 on the preparation and implementation of strategic investments in transmission networks.
It is worth noting that the construction of power infrastructure often involves the need to sign numerous civil-law agreements with land owners, as well as making appropriate entries in land registers. Such formalities - especially for long power lines - take a lot of time.
Due to the interference of electricity infrastructure investments in private land, landowners (as well as the land immediately adjacent to them) have the possibility to use different types of appeal procedures. For this reason, among others, investments in electricity infrastructure are often accompanied by extensive public communication programmes. This was also the case - starting in 2013 - for the Stanisławów substation. Due to properly planned and conducted information and consultation activities, people interested in the construction of the electricity grid were able not only to obtain the necessary information, but also to express their opinions and possible concerns.
- The next step was to obtain a decision to exclude the land from agricultural and forestry production before obtaining permission to build the substation. The basis for such a request was the LSDP locating the electricity investment.
If the provisions of the special law are used, it is not necessary to carry out this procedure.
- And finally, the building permit, which is issued by the competent authority of architectural and construction administration (in the case of the Stanisławów substation - the Mazovian Voivode). In order to obtain it, it is necessary to obtain all previously mentioned documents, permits and opinions, as well as the construction design of the investment prepared by an entity authorised to do so.
Eltel Networks Energetyka SA received the building permit for the Stanisławów substation in December 2013 - after only two months from the submission of the application.
- The last step on the formal and legal path is the final acceptance of the investment by the investor, i.e. the Client.
- And finally, well ... You can watch our work - the construction of the Stanisławów substation - at Eltel Networks, 400 kV substation, Stanisławów - YouTube, which I warmly encourage you to do.
Stanisławów substation - efficient implementation and expansion of the power project
Eltel Networks Energetyka SA completed the construction of the Stanisławów substation in accordance with the highest standards of IPMA (International Project Management Association). Thanks to our experience in providing electricity services and our high level of competence in project management, as well as our skilful cooperation with the environment, the formal and legal process went extremely smoothly - and it is this stage of investment in electricity infrastructure that is often the most difficult today.
Currently, a new 400 kV power line between Ostrołęka and Stanisławów will be introduced to the Stanisławów substation, which is also being implemented by Eltel Networks Energetyka SA in cooperation with the Consortium.
Award for Eltel Networks Energetyka SA for conducting the project "Construction of 400 kV Stanisławów Substation".
Author: Przemysław Puchta