Transmission arrangements for distributed
generation
Pre consultation document
DCMF
9 April 2008
Pre-consultation document
Issues associated with DG

Transmission charging arrangements do not provide a level
playing field for transmission and distribution connected
generation in terms of cost-reflectivity

Access arrangements do not provide a level playing field in
terms of access allocation as DG “jumps the queue”

No contractual framework for exporting GSP’s

DG not directly visible to NGET causing difficulties in



Investment planning
Demand forecasting
Outage and fault level planning
Pre-consultation document
Transmission charging

Current arrangements do not reflect the transmission
investment costs incurred as a result of generation
connecting to the distribution networks

‘Embedded benefit’ of ~£18/kW provides additional
incentives for generation to embed

‘Actual’ embedded benefit estimated to be ~£7.50/kW



Demand savings ~£5.75/kW
Generation connection savings ~£1.50/kW
Commoditisation of the residual element would not reduce
the embedded benefit for average load plant
Pre-consultation document
Proposals

CUSC modification regarding thresholds associated with a
request for a Statement of Works by the DNO (CAP097)
shortly

Inviting views regarding second CUSC modification to
introduce a new entry product for exporting GSP’s

Presenting two competing potential enduring solutions for
industry comment


GNSAM strawman
Net DNO Agency Model strawman
Pre-consultation document
GNSAM (1)
CVA Registered
Embedded
Generator
Supplier
Pays TNUoS generation tariff
directly to National Grid, minus
a cost reflective discount for
explicit access rights
Contract with
the DNO for
connection
Responsible for SVA
generator output and pays
TNUoS generation tariff
minus discount on behalf of
SVA registered generator
Pays supplier TNUoS
generation tariff minus
cost reflective discount
for implicit access rights
GBSO
Distribution
Network
Operators
Contract with
the DNO for
connection
SVA Registered
Embedded
Generator
Pre-consultation document
Net DNO Agency Model (1)
Directly
connected
demand
Generator
Books and pays
for TEC + shortterm products
Supplier
Transmission
Notify requirement
and pay for TEC
Embedded
Generator
Supplier
Notify demand
requirement and
pay for TOC
Books and pays for
TOC + short-term
access products via
supplier
Books and pays for TEC/TOC
+ short-term products
(overrun, sharing. Nonobligated release, short-term
demand product)
Distribution
Network
Operators
Pre-consultation document
Next steps

Pre-consultation expected to be published midApril for a six weeks consultation period


Proposing modification to existing CAP097 thresholds
Inviting views on:


GNSAM and Net DNO Agency Models presented as potential
enduring solutions, in consideration of TAR
Appropriateness of developing an entry product for exporting
GSPs at this time, given that this is a step in the direction of a
Net DNO Agency model