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Generators seeking access to the Grid must make an application under the CETL to NGESO . If the application meets the requirements of CETL and CUSC , NGESO must make an offer to the applicant as soon as practicable offering connection to the Grid . The offer of connection comprises :
■ a construction agreement in respect of the relevant connection facilities ;
■ a connection agreement governing the relationship between the generator and NGESO ; and
■ an accession agreement to CUSC .
4.4 What are the requirements for renewable energy facilities to be connected to and access the distribution network ( s )?
The UK ’ s distribution networks are operated by two sets of operators : 14 distribution network operators ( DNOs ), who operate larger distribution networks ; and independent distribution network operators ( IDNOs ), who operate smaller networks within areas covered by DNOs .
In order to be connected to and access distribution networks , the renewable energy facility must apply to the relevant DNO or IDNO in accordance with the requirements of the Electricity Act . The DNO or IDNO must then offer connection terms to the facility as soon as practicable , subject to certain exemptions .
4.5 Are microgrids able to operate ? If so , what is the legislative basis and are there any financial or regulatory incentives available to promote investment in microgrids ?
Microgrids may operate in the UK and are subject to the same legal and regulatory regime as distributed renewable energy facilities .
Until 2019 , generators using microgrids were able to benefit from the FIT scheme , now replaced by the SEG scheme ( please see question 3.5 for more detail ).
52 Storage
5.1 What is the legal and regulatory framework which applies to energy storage and specifically the storage of renewable energy ?
Electricity storage ( including the storage of renewable energy ) is currently treated as a type of electricity generation . Accordingly , the applicable legal and regulatory framework that applies to electricity storage is currently the same as that applicable to electricity generation . Although the Electricity Act does not currently include a specific definition of electricity storage , this is currently the subject of government consultation .
The provisions relating to generation licences ( and exemptions ), planning permission and construction described at question 4.1 also apply to electricity storage projects .
All electricity storage projects will also need a completed lease on satisfactory terms in relation to the land in which it is located and , in respect of battery storage projects , must comply with various UK , European and international standards on battery matters .
5.2 Are there any financial or regulatory incentives available to promote the storage of renewable energy ?
Energy storage systems benefit from the FIT scheme ( provided that applications have been submitted prior to 31 March 2019 ) and the RHI scheme as described at question 3.5 .
Additionally , in early 2019 , BEIS launched the Storage at Scale competition for up to £ 20 million to be awarded to up to three projects offering large-scale energy storage solutions using innovative technologies which offer a market competitive alternative to conventional energy storage . The target for these projects is to be capable of operating cost-effectively with a target minimum output power of 30MW or minimum capacity of 50MWh for electrical energy storage technologies . Successful projects will be built and tested by December 2021 .
62 Foreign Investment and International Obligations
6.1 Are there any special requirements or limitations on foreign investors investing in renewable energy projects ?
There are no particular restrictions on foreign investment in UK renewable energy projects .
However , Ofgem , currently together with the European Commission ( subject to any Brexit-related developments ), is required to undertake an assessment as to whether foreign ownership or control of a renewable power project poses a risk to security of supply .
Additionally , in July 2018 the government published a White Paper setting out proposals to strengthen its powers to scrutinise transactions and projects on national security grounds , particularly in “ core areas ” ( including certain parts of energy sector , and specifically organisations owning large-scale power generation of greater than 2GW ). Following voluntary notification or “ call-in ” by the government , a full national security assessment may be made , which may result in the transaction or project being blocked or allowed subject to certain conditions .
6.2 Are there any currency exchange restrictions or restrictions on the transfer of funds derived from investment in renewable energy projects ?
No exchange control restrictions affect inward or outward investment ( direct or portfolio ), the repatriation of income or capital , the holding of currency accounts , or the settlement of currency trading transactions .
6.3 Are there any employment limitations or requirements which may impact on foreign investment in renewable energy projects ?
No sectors of the economy are restricted to UK nationals or require majority equity holdings or other specified holdings by UK nationals . In practice , foreign companies can obtain work permits for foreign employees by demonstrating that their skill level or experience cannot be found among UK nationals .
6.4 Are there any limitations or requirements related to equipment and materials which may impact on foreign investment in renewable energy projects ?
Whilst the UK remains a member of the EU customs union , UK companies can buy most goods from other EU member countries without restriction , although VAT and excise duty will usually still apply . In respect of imports from outside the EU , there may
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