Insight papers

Rationalising Micro-generation Exports

In this insight paper, we set out a four-part solution to ensure the continuation of a guaranteed route to market for micro-generation exports as the Feed-in Tariff (FiT) scheme closes to new investment from 1 April 2019. This paper builds on the September 2018 UnFiT for Purpose insight paper, in which we argued for a safety net for export volumes from smaller micro-generation installations.

Our new paper argues that deeming of export volumes for new sub-30kW installations should be retained to ensure parity with existing FiT installations. Critically, there is a need for transitional measures to be introduced into the Balancing and Settlement Code (BSC) ahead of the completion of the smart meter roll-out and the associated industry work programme to implement market-wide half hourly settlement. We provide four workable options that would allow deemed export volumes to be recognised within the electricity industry settlement system, and therefore provide an incentive—which currently does not exist—for suppliers to contract with the smallest of generators as part of their wider commercial strategy. Importantly, this will preserve incentives to install smart metering (that can measure export volumes) and allow market access for new and existing installations where present metering arrangements and industry incentives result in volumes ‘spilling’ on to the system.

Request a copy of the paper here.

UnFit for Purpose

UnFiT for Purpose: A Call for Intervention to Support Small-scale Low-carbon Generation Post March 2019 is an insight paper by Pixie Energy that aims to address the issue of securing a route to market for small-scale low-carbon generation, following the announcement by BEIS that the Feed-in Tariff (FiT) scheme will close to new applicants on 31 March 2019.

We recommend a Transitional Offtake Tariff to support continued support of deployment of small generators from April 2019 until new local markets can be shown to work. This could be achieved at no cost to consumers by tying export rates to system values. It advocates a continuing obligation on suppliers to purchase surplus energy from solar sites below 250kW. It also proposes retention of guaranteed market access for community energy schemes at a higher threshold of 500kW given their reliance on certain export payments.

Request a copy of the paper here.

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