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HAVE YOUR SAY ON REDUCING COSTS FOR GAS GRID CONNECTIONS


The Energy Networks Association (ENA), which represents the Gas Distribution Networks, has released a consultation to gather views on reducing the requirements for CV measurement at biomethane sites. We have been closely involved in pushing for this consultation, as part of the biomethane campaign group that we set up with ENA to address technical and market issues for biomethane sites.


The proposed options set out in the consultation document are as follows: Option 1 – No change to current regime Option 2 – Modified Ofgem Letter of Direction Option 3 – Removal of the requirement for Ofgem to ‘direct’ low-flow biomethane sites


To see the full document, go to: http://bit.ly/1HmDEv6 GET INVOLVED


We are compiling a response to the consultation – please send your comments to william.bushby@adbioresources.org by 3 July. In addition, ENA is holding a consultation workshop on 23 June at its London offices. To register, contact regulation@energynetworks.org by 12 June.


GRID CONNECTION LIMITATIONS HINDERING INDUSTRY GROWTH


Getting a prompt electricity connection to the local distribution network is essential for most AD projects. Yet, over the last few months, we have received evidence from developers across the country highlighting their difficulties in doing so. This problem is being experienced by most renewable technologies, and Ofgem has now consulted on how to deliver a more efficient connection process, which also protects the interests of consumers.


In summary, the consultation acknowledged that, under the current system, there is insufficient anticipatory reinforcement of the grid, leading to long delays for those seeking new connections where an area of grid reaches full capacity. Ofgem has therefore proposed three potential solutions to this problem, summarised as follows: Scenario 1: Distribution Network Operators (DNOs) can recover the costs of anticipatory reinforcement through energy bills (full socialisation of costs);


Scenario 2: DNOs can recover the initial costs of anticipatory reinforcement through energy bills, but the costs are then repaid to bill payers by subsequent connection customers;


Scenario 3: Third parties (such as commercial developers or local authorities) can carry out the reinforcement works instead of the DNOs and recover the cost from subsequent connection customers.


Ofgem has also proposed a range of solutions to avoid the need for network reinforcement in the first place, and to create greater flexibility in the recovery of connection charges (for example, by staggering connection costs).


In the past, the regulators’ efforts to improve the service provided by DNOs has proved ineffective and so, in order to continue the development of renewable energy, Ofgem and DECC need to ensure that connections are available quickly and at a reasonable cost. The consultation has now closed and our formal response is available to view at adbioresources.org


adbioresources.org JUNE 2015 | AD & BIORESOURCES NEWS 5


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