UK Energy Regulator Relaxes Rules to Boost Renewable Generation

UK energy regulator Ofgem last week said it would temporarily relax the rules governing the nation’s electricity networks to speed up connections for low-carbon power generators.

The temporary relaxation applies to rules for connection to and use of the high-voltage electricity networks. It means any generator (renewable or thermal) wanting to seek an earlier connection date can now do so by approaching UK grid operator National Grid. It would allow, for example, 450 MW of planned small and large UK wind farms that are ready to propose connection dates to be connected in Scotland as soon as they are ready.

UK Department of Energy and Climate Change Minister Mike O’Brien said in a release that it was vital to “sort out the queue for connection to the grid” if the UK was to put online its many planned renewable projects. “We want to make it as seamless as possible for renewable and other generators to come online as soon as they need to.”

The approach adopted by Ofgem is an interim solution to speed up connections while more enduring reforms are introduced. It is expected that some of the generators could start to connect this year.

“A large queue of renewable projects is awaiting connection to Britain’s networks and being flexible in how we apply the industry rules is an innovative way of speeding up connections in the short-term,” said Ofgem Managing Director of Networks Steve Smith. “This decision means low-carbon projects (whether seeking connection to the transmission or distribution systems) will no longer be delayed by the need to invest in the grid. The new approach will also help other generators in comparable circumstances.”

Smith added that the long-term solution is to reform access arrangements and increase network capacity. The revised approach follows on the heels of Ofgem’s approval last month of £12.5 million so that two of the UK’s three electricity transmission companies—National Grid and Scottish Power—could begin feasibility studies and preparatory work on the investment needed to support new renewable generation connections to meet the UK’s stringent renewable standard by 2020.

Ofgem will also move this year to introduce new incentives for transmission companies and allow them to earn a higher return for taking on some of the risk of building new transmission capacity in anticipation of new generation projects seeking connections.

Source: Ofgem