Better deal for greener generators - LIDDELL WELCOMES PROGRESS ON BETTER DEAL FOR GREENER GENERATORS
Helen Liddell, Minister for Energy, today welcomed proposals to help
greener generators secure a better deal. The initial report from a
working group set up to boost electricity production by small
electricity generators was published today.
The Embedded Generation Working Group, which has experts from across
the industry, was set up by Government to look at ways to improve
access to regional electricity distribution networks for smaller
generators. This is particularly important for renewable energy
plants and combined heat and power (CHP) installations who need easy
low cost access for their projects to be viable.
The main recommendations of the report are:
1. Ofgem should review the structure of regulatory incentives on
distribution companies particularly in order to :
* adopt a connection and use of system charging regime which reflects
more effectively the level playing field which needs to be
established for embedded plant;
* review and prepare guidance that will allow distribution companies
to take fully into account the contribution embedded generation makes
to network performance ; and
* putting in place better arrangements for distribution companies to
provide connection and charging information to developers of embedded
generation.
2. An implementations Group should be established under Government
leadership to co-ordinate and take forward the implementation of the
recommendations in the report for the longer term.
Mrs Liddell said:
"It is vital that we help developers and operators of environmentally
friendly embedded plants such as CHP and renewables gain fair access
to the distribution network at fair prices. This report makes a
significant step on the road to achieving that. I am impressed by
the degree of consensus reached given the wide range of interests
involved in the Group.
"Consumers are increasingly demanding green sourced electricity. At
the same time, cost effectiveness of smaller generation plants is
improving all the time.
"Measures to improve electricity production from embedded generators
will make a valuable contribution to the Government's target of
producing 10 per cent of electricity from renewable sources by 2010."