Renew On Line (UK) 54

Extracts from NATTA's journal
, issue 154 Mar-Apr2005

   Welcome   Archives   Bulletin         


1. A new UK Climate Plan

2. Green Heat and Biofuels

3. Local support for Tidal power

4. Wind rush- and wind problems

5. Micro power push: PV and micro-CHP

6. Clean-coal ‘better than wind’

7. Industrial ups and downs

8. Grid Connection Charges

9. £80m for Innovation

10. Efficiency Drives

11. World news: Kyoto goes live

12. World Renewables Round up

13. Nuclear Power- more or less?

8. Grid Connection Charges

The issue of how to charge for connecting major wind farm projects to the national grid has still not been fully resolved, but in response to a Parliamentary Question last Dec, Energy Minister Mike O'Brien commented : ‘The Energy Act 2004 laid the foundation for the creation of a single GB market for wholesale electricity trading and transmission. Charges to connect to and use the GB transmission system, and therefore access the GB market, are still being developed by National Grid.’ 

But he added that Ofgem had approved National Grid’s proposed connection charges, i.e. the charges that relate to the specific assets provided at each site to connect to the network.
He added Ofgem also recently announced that, following approval of a use of system charging methodology, it is minded to implement a discount against transmission charges of approximately £4 per kilowatt for smaller generators connected to the transmission system at 132KV. This is expected to encompass a number of larger wind-farm developments, particularly in the north of Scotland.’ 
He went on  ‘Further, the Government took a legislative power in the Energy Act 2004 to allow the Secretary of State for Trade and Industry to introduce a dispensation regime in order to limit the transmission charges to renewable generators in a specified area of Great Britain, if the transmission charges would otherwise materially hinder renewable development in that area. DTI recently commissioned an independent study to examine the likely impact of GB transmission charges on renewable development, in particular Scotland.’
He concluded ‘The establishment of the GB market will also remove charges for using the Anglo-Scottish interconnector currently paid by Scottish generators including windfarms, exporting to England and Wales. It will also give Scottish generators, including renewables access, to the GB market as a whole rather than their development being constrained by the limited size of the electricity market in Scotland.’

The price is right

OFGEM, the electricity regulator, says the increase in embedded renewables and CHP capacity is adding to the burden of distribution companies, so it will allow them to raise prices by 1.3% after inflation for the next two years, and by the rate of inflation for the following four years. Ofgem says this will provide about £500 m to help integrate renewables into distribution networks. But it puts the total cost of rewiring the UK to connect in  renewables at £1bn.

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