Connecting to the national grid and selling your power

Out line of presentation

1. Introduction to the national Grid

2. Micro generation Certification Scheme

3. How to gain a connection to the national grid

4. Low Renewable Obligation Certificates

5. How feed in tariff is properly going to work.

Intro to Uk national grid operation

• National grid (SO) is in charge of making sure the grid operates at the correct voltage and frequency

• 14 Distribution Network Operators (DNO) look after the Running of the grid there and distribution of power around it

• Many Suppliers buy energy on a open market from different energy sources

• The supplier charge the customer for there energy use

• The supplier pay a charge to the DNO and SO accounting for around 25% for the consumers bill

• If you want to supply power to the grid then you must first ask permission from the DNO

Power generators

National Gridsystems Operator (SO)

14 licensed distribution network operators

Consumer

Your chosen energy supplier

Energy

Money

Flow of cash and Energy

Micro generation Certification Scheme

The MCS is a scheme set up to allow consumers better guarantees of renewable products and installers

An MCS approved product or installer must comply to certain Regulations regard Advertising, Product description and adherence to all relevant technical standards

MCS

• A lot of grant scheme are only available to MCS Installed products

• Has a recognisable advertisement • Gives better Guarantees of good quality products and

installers •Provides a starting ground when searching for an installer

•Advertising rules Meet Office of fair trading standards

•Most likely Fits will only be obtainable with a MCS install

Connecting to the national grid

• The process of connecting to grid is regulated by the DNO

• Bs standard 7671 apply to any cabling• G83/1 set down certain regulation

regarding how the power is fed to grid inc• Automatic isolation of generator during a

power outage• Correct voltage and frequency rates

Application

• Any generator over 16amp must have prior permission before connection

• Smaller generators must have notification sent to the DNO when the generator is connected

• 30days to file paper work with full project details

ROCs• All suppliers are required

to buy power from a RE • They are required to

acquire a certain number of ROCs a year

• The amount increase each year

• Generators create 1 ROC for every 1Mwh they produce

• They can then sell the ROC on

• This can be done independently of supplying power

• There a set buy out price current £37.19p a ROC

• Any buy out money is distributed between the generators

Flow of money and ROCs

Suppliers with obligation to

obtain ROCs

Renewable Generator

Energy and Rocs

Money

Buy Out cost (ofgem)

Pot of money from Buy outs (Ofgem)

MoneyRocs

Money

Supplier with an excess of ROCs

Rocs

Money

Money from buy outs shared between ROC

producers as a percentage of market

share

Who can use Rocs

• Anyone who’s generating the electricity in a renewable manor can apply to join the scheme

• Rocs can either be sold on the open market Via a broker who’ll take a fee

• Rocs can be sold to Ofgem for a guaranteed amount as long as producing is over 500kwh usually around £0.33 a kwh

Rocks for Micro-generation

• Anyone producing less than 500 Kwh is not worth using ROCs

• In April 2010 producers less than 50Kwh will be excluded from ROCs and feed in tariff introduced

• ROCs the price can be vary Due to ROCs being sold on a open market Ie more renewable generation price of rocs will drop

• Makes long-term investment harder to achieve

Feed in tariff Feed in tariff are credited with the large scale introduction of Renewable energy sources in many countries some key examples being Germany and Israel.

The government in about half way though the consultancy phase and the scheme is aimed to come into effect in April 2010

The Scheme will not be a true feed in tariff as premium amount will paid for unit generated rather than unit supplied to the grid

German’s Renewable Generation amounts have risen exponentially with the boom beginning in the mid nineties

Countries with Fit schemes• Israel (2008)

• Iran (2009)

• Canada (2006

• Spain (2007)

• South Africa (2009)

• China (2009)

How the UK schemes will work

• Existing scheme under 50kw will automatically be transferred to FITS

• New scheme from 50kw to 50Mw will have to make a one off decision between ROCs and Fits

• Power generated will be paid at a fixed rate dependent on the technology

• Any electricity fed into the grid will be brought at £0.05Kwh

• The price will guaranteed for 20 year or 25 years for solar power applications

Proposed Tariff SchemeTechnology Scale Proposed initial tariff

p/kWh)Annual degression %

Anaerobic digestion Electricity only 9 0

Anaerobic digestion CHP 11.5 0

Biomass <50kW 9 0

Biomass 50kW-5MW 4.5 0

Biomass CHP 9 0

Hydro <10kW 17.0 0

Hydro 10–100kW 12 0

Hydro 100kW–1MW 8.5 0

Hydro 1-5MW 4.5 0

PV <4kW (new build) 31 7

PV <4kW (retrofit) 36.5 7

PV 4-10kW 31 7

PV 10–100kW 28 7

PV 100kW–5MW 26 7

PV Stand alone system 26 7

Wind <1.5kW 30.5 4

Wind 1.5–15kW 23.0 3

Wind 15–50kW 20.5 3

Wind 50–250kW 18.0 0

Wind 250–500kW 16.0 0

Wind 500kW–5MW 4.5 0

House Hold

RenewableGeneration

capacity

Any excess energy will be sold to the grid at £0.05Khw

The home hold can buy any extra energy it needs

National GridEnergy Supplier

What ever is generated

receives a fixed played rate

How the fit scheme be coasted

The fits scheme will be shared cost for the Suppliers

Eg is one Suppliers is buying £30 and the other £10 worth of energy on the fit scheme then the latter must pay the other company half the difference thus sharing the cost.

Timetable

• FITs don’t come into until properly April 2010

• Still in consultation Period • First Draft will b compete by December• Should be submitted to Parliament by

February • Coming into force in April 2010