128 United Kingdom
projects up to 5MW capacity . It offers long-term support to projects and provides generation and export tariffs based on the costs of generation for the following technologies : solar PV ; onshore wind power ; hydropower ; anaerobic digestion ; and micro combined heat and power ( up to 2kW ). The FiT scheme closed to new entrants on 31 March 2019 but continues to support existing generation for up to 25 years .
Smart Export Guarantee ( SEG ): following the closure of the FiT scheme to new installations , supplier-led SEG was introduced on 1 January 2020 . Under the SEG , licensed electricity suppliers ( with 150,000 domestic customers or more ) are required to offer small-scale low-carbon generators a price per kWh for electricity exported to the National Grid . Remuneration is available to solar PV , wind , anaerobic digestion and hydro generators of up to 5MW in capacity , and micro combined heat and power installations up to 50kW . Mandated suppliers are required to provide at least one SEG compliant tariff . They are free to determine the price and length of the contract , provided that remuneration is greater than zero at all times .
3.6 What are the main sources of financing for the development of distributed / C & I renewable energy facilities ?
The majority of smaller-scale distributed and C & I renewable energy facilities have been financed on balance sheet ; however , project finance has grown in importance for investments in this sector . To date , the majority of this project finance debt has been provided by commercial banks , either on a standalone project or portfolio basis .
3.7 What is the legal and regulatory framework that applies for clean energy certificates / environmental attributes from renewable energy projects ?
The RO scheme applies to large-scale renewable electricity projects in the UK creating a market for the sale of environmental attributes . The scheme obliges UK electricity suppliers to source an annually increasing proportion of the electricity supplied to customers from renewable sources .
Ofgem issues Renewable Obligation Certificates ( ROCs ) to qualifying renewable generators in respect of the electricity they generate . Such generators can then sell those ROCs to suppliers or traders as tradable commodities . Different renewable types receive different numbers of ROCs depending on their costs and size . Suppliers are then obligated to meet individual targets by purchasing ROCs either from renewable generators directly or from traders and brokers in the ROCs market . Ultimately , ROCs are used by suppliers to demonstrate that they have met their annual obligation .
This scheme closed to all new generating capacity on 31 March 2017 . Projects that have been accredited before this date will be supported until 20 years from the date of accreditation or 31 March 2037 , whichever is earlier .
3.8 Are there financial or regulatory incentives or mechanisms in place to promote the purchase of renewable energy by the private sector ?
The Renewable Heat Incentive ( RHI ) is a financial incentive to encourage the uptake of renewable heat by businesses , public sector and non-profit organisations and homeowners . The non-domestic RHI was introduced in 2011 , with the domestic
RHI following in 2014 . The schemes are designed to help bridge the gap between the costs of fossil fuel heating technologies and low-carbon alternatives . Participants receive a tariff , set in pence per kilowatt hour of heat used , for either seven ( domestic RHI ) or 20 years ( non-domestic RHI ), which is set at a level to cover the additional costs of the renewable heating system .
42 Consents and Permits
4.1 What are the primary consents and permits required to construct , commission and operate utilityscale renewable energy facilities ?
In England , utility-scale projects with more than 50MW of capacity , or 100MW for offshore wind , are subject to the Planning Act 2008 ( Planning Act ) and are deemed “ nationally significant infrastructure projects ” requiring specific consent from the Planning Inspectorate which acts on behalf of the Secretary of State for BEIS . This excludes electricity storage projects ( except for pumped hydro ), which were recently carved out of this regime .
Consent is required under the Electricity Act for utility-scale projects which are not subject to the Planning Act or the Town and Country Planning Act 1990 ( TCPA ), such as offshore wind projects with a generating capacity of greater than 1MW but less than 100MW . Applications under the Electricity Act are considered by the Secretary of State for BEIS .
The installation of the project will need to comply with development regulations , including the Construction ( Design and Management ) Regulations 2015 which sets construction requirements and restrictions .
The Electricity Act provides that it is an offence to generate electricity for the purposes of supply to any premises without a licence or exemption . Licences are granted by Ofgem . The Secretary of State for BEIS may grant specific or class exemptions to this requirement .
The Electricity ( Class Exemptions from the Requirement for a Licence ) Order 2001 ( SI 2001 / 3270 ) ( Class Exemptions Order ) provides a number of class-based exemptions to the general licensing requirements under the Electricity Act . Smaller utility-scale generators may benefit from the “ Class A ” exemption , for facilities which do not at any time provide electric power in excess of 10MW ( for facilities with a declared net capacity of greater than 100MW ) or 50MW ( for facilities with a declared net capacity of less than 100MW ).
In addition , generators must comply with relevant health and safety legislation and industry codes in order to operate their facilities , such as the Balancing and Settlement Code , the Connection and Use of System Code ( CUSC ) and the Distribution Use of System Agreement .
4.2 What are the primary consents and permits required to construct , commission and operate distributed / C & I renewable energy facilities ?
In England , distributed and C & I renewable energy facilities are likely to fall beneath the 50MW threshold under the Planning Act and will instead be subject to approval under the TCPA . Onshore wind farms , including facilities with generating capacity in excess of 50MW , are subject to the TCPA planning regime due to the perceived increased local impact caused by their construction and operation . Planning applications under the TCPA are made by generators to the local planning authority .
Certain microgrids with a generating capacity of 50kW or less may benefit from permitted development rights where planning
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Renewable Energy 2022