ARTICLE / MAKALE fuel fireci electricity generator over 1 O MWe. Section 36 consent is requireci for any electricity generator over 450 MWe. Before December 1997 the Secretary of State for lnciustry ciici not require projects applying for these consents to conform to any specific requirement other than those requireci by the Local Authority. ■ in December 1997 the Government announced a review of this policy and introduced a moratorium on the development of gas fired generation during the review. ■ The ciecision was to ciefer consents for new gas fireci generation until reforms of the UK's electricity traciing system were in place. The exemption for cogeneration was introciuced provicieci that schemes offer significant benefits over the alternative energy supply options. Applications are jucigeci on a case by case basis, with an expectation that projects shoulci offer an efficiency of 70%(Net Calorific value basis) or more uncier normal operating conciitions. The case by case application of these guicielines enables projects with seasonal heat loacis or planneci increases in heat loaci to be assesseci. As cievelopment of new large non-cogeneration projects has been halteci cievelopers have been keen to finci CHP projects which are suitable for this new planning policy. Since the review a total of 13 schemes have been given planning consent, representing 835 MWe of new cogeneration capacity. A significant capacity of schemes have applications uncier consicieration or are ciiscussing applications for consent. Licenses Two forms of licenses may be reqıireci by cogeneration schemes,generation anci supply licenses. These are issueci by the electricity regulator, baseci on rules anci proceciures set out in the Electricity Act anci overseen by the DTI. The license regime is ciesigneci to provicie: • Appropriate regulation of licence holciers; • A framework for competition in generation anci supply; • Protect the technical integrity of the network; • Assurance of stanciarcis of performance for customers. As a rule most activities in the electricity inciustry require a license - however there are a number of exemptions which are important for cogeneration. Generation Licenses Owners of large generating plants are requireci to holci generation licenses; owners of smaller schemes are exempteci from this requirement. The exemptions apply to: than•5P0laMnWt oef less than 1 00 MWe that exports less • Plant of over 1 00 MWe that exports less than 1 O MWe in these case exports to on-site customers or to a qualifying group of customers anci over private wires cioes not get inclucieci in the calculation of exporteci electricity. The holciers of generation licenses are requireci to seli their electricity through the pool; hence they must pay for pool membership anci the pool aciministration charges anci must comply with the rules on settlement anci pooling. Pool membership also means that these generators receive Pool Purchase Price for their electricity rather than the higher Pool Selling Price. Larger generators, with net export over 100 MWe, are subject to central ciispatch by the transmission system operator the National Grici Company. As well as the loss of control over plant operation the generator will have to pay NGC Transmission Network Use of System charges - a location baseci charge. These exemptions anci the coast of pool membership are likely to change substantially once the new electricity traciing arrangements replace the pool. Supply Licenses Generators who supply more than 500 kW across the public distribution network are requireci to holci a supply license. This requires the generator to: • Match generation with customer ciemanci • Pay ciistribution use of system (DUoS) charges for the electricity supplieci • Join the pool, paying membership anci aciministration charges • Take responsibility for meter operation, ciata collection anci aggregation for all customers • Take the risk of baci ciebts from customers The costs of complying with these requirements means that many cogeneration schemes choose to seli their exports to an existing supply business that alreaciy holcis a license. There are however alternative strategies. The first is to builci a private cable to supply a single, usually acijacent, customer. Several examples of this exist stimulateci by the savings by avoiciing DUoS charges anci licence conciitions. A seconci option is to purchase part of the electricity ciistribution network from the local REC. This has happeneci when a Local Authority has set up cogeneration scheme for a tower block anci bought all the electricity ciistribution system in that block to offer heat anci electricity ciirect to tenants. Again as the pool is ciue to be reformeci these licence conciitions anci exemptions are likely to change. COGENERATIOtl WORLD & Reneable Energy ))
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