Amendment to the IKN Regulation

The government recently published a regulation (2024:1250) amending the Ordinance (2007:215) on exemption from the requirement for a grid concession under the Electricity Act (1997:857), the so-called IKN Regulation. The government codifies the previous practice of the Energy Markets Inspectorate that energy storage facilities can be covered by the exemption in Section 22 a of the IKN Regulation. This includes both energy storage in batteries and in hydrogen, provided that the stored energy is fed back into the regular transmission network.

However, the government has not implemented all the changes to Section 22 a proposed by the Energy Markets Inspectorate in Ei R2022:12, as “a facility for the consumption of electricity or a facility for the conversion of electricity to another energy carrier” is not included in the exemption. The exemption in Section 22 a of the IKN Regulation thus do not include a facility for converting electricity to hydrogen, which is then transported by pipeline or tanker truck, i.e., not fed into the regular transmission network. This means that the Energy Markets Inspectorate’s previous practice that a concession is required for the network between a wind farm and a hydrogen facility, where the hydrogen would be delivered to others for use in the transport sector or industry, remains relevant. This is unfortunate, as a concession requirement according to the Electricity Act for this situation constitutes an obstacle to hydrogen development. It should be noted that the Energy Markets Inspectorate, in individual cases, after an application for a binding decision according to Chapter 2, Section 6 of the Electricity Act, can examine whether such a hydrogen facility is covered by the exemption in Section 22 a of the IKN Regulation.

The amendments come into force on January 14, 2025.

The content in this article is of informative nature and does not constitute legal advice for a particular case.