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· Ofgem
publish their Targeted Charging Review ‘minded to’
proposals
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· Proposals
to remove more grid charge benefits for small embedded generation
and imposing grid charges will make it more challenging to
operate small-scale renewable assets
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· The
plans discriminate against those with existing small
scale-renewable assets
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· This
is expected to disincentivise those planning to install small
scale renewables, undermining UK decarbonisation targets
Yesterday Ofgem published their Targeted Charging Review
consultation on removing the remaining grid charge benefits for
small, embedded generation, and making such sites pay balancing
charges.
This review is part of a wider package of reforms planned for the
grid network, which, when taken together with this latest
announcement will make it more challenging to build and operate
smaller-scale renewable assets in the UK as the cost of ‘using
the wires’ will increase. This update only serves to highlight
the disconnect between the need to decarbonise through expansion
of decentralised generation assets and the chipping away of
support.
The impact on large businesses and manufacturers who have taken
responsible steps to use renewables at their operations is very
negative and sends a signal to others not to install these
technologies' at businesses, despite all the benefits they
provide for security of supply, backup power, decarbonisation and
reducing air pollution.
This is compounded by the current proposals to end support for
new small-scale renewables from next year, with the closing of
the Feed-in Tariff scheme.
At this current moment in time, this is not yet a finalised
decision and once made will not be implemented until 2021 or
2022. The final decision will correspond to the feedback provided
from the consultation Targeted Charging Review: Minded
to decision and draft impact assessment, which is due to
close in February.
Dr Nina Skorupska CBE, Chief Executive of the Renewable
Energy Association said:
“While our sector accepts the network must be paid for, these
proposals would specifically hit homes and businesses which have
installed on-site solar, wind, and other generation, as well as
energy storage. This is clearly the exact opposite of what is
needed to decarbonise and provide system flexibility.
“For the price of saving some consumers the equivalent of a
cup of coffee (£2) a year, these proposals will make it tougher
to build small scale renewables and punish homes and businesses
that have taken the socially and environmentally responsible
decision to install renewables such as solar. We look forward to
further discussions with Ofgem during the consultation
period."
Notes to editor
· Targeted
charging review: minded to decision and draft impact
· Assessment
released yesterday can be found here: https://www.ofgem.gov.uk/system/files/docs/2018/11/targeted_charging_review_minded_to_decision_and_draft_impact_assessment.pdf?utm_source=REA+Member+List+%E2%80%93+GDPR+compliant&utm
· The
Targeted Charging Review: Minded to decision and draft impact
assessment consultation can be found here:https://www.ofgem.gov.uk/publications-and-updates/targeted-charging-review-minded-decision-and-draft-impact-assessment
