Earlier this week, Ofgem released a decision document on the regulatory implications of microgeneration. Although the report does address some of the specific questions raised by last April’s original consultation, it has a much wider scope. By considering parallel issues such as supply licence proposals and metering innovation, the report is really a big picture assessment of the regulatory situation facing UK microgeneration.
The report concludes that, while many regulatory barriers to microgeneration have been removed, some obstacles still remain. For example, many grid-connection and metering issues have been clarified, thus facilitating the basic installation and operation of a microgeneration system. However initiatives to encourage the more complete integration of microgeneration into the elecitricty system, such as the use of agents to make the collection of ROCs easier, still need work and further consultations are planned. A few radical changes are proposed as well, including the removal of the 28-day rule
In light of this report, it’s useful to step back from the regulatory minutiae and think about how microgeneration has advanced overall in recent years. On the policy front, things are looking quite good. When I began my doctorate in 2003, microgeneration barely featured on the policy agenda. However as evidenced by Ofgem’s work, government grants, increased research and media attention, microgeneration is now a major part of UK energy policy debates (especially in the domestic sector). With approximately 82,000 microgeneration installations in the UK, microgeneration is becoming more common on the ground too. However if the UK is to achieve its climate change goals, research suggests that on average two microgenerating devices will need be present in every home by 2050. Clearly then, much still has to be done to move microgeneration from rhetoric to reality.
In the next entry, I’m going to talk about an issue that intersects both the regulatory changes discussed here and the larger picture for growth in microgeneration: how to ensure that households receive a fair payment for the output of their microgeneration system.
“The ‘28 Day Rule’ requires all energy supply contracts to be terminable on 28 days’ notice. Some suppliers have argued that relaxing this rule and proving consumers with the option of having longer term contracts could enable energy suppliers to provide more energy efficiency services to domestic consumers, and the trial will test this, and whether customers can be adequately protected without the right to switch supplier.”
